SBS will completely withdraw from Wavve within this year due to the impact of its exclusive supply contract with Netflix.
According to a report by OSEN on the 18th, SBS is preparing to sever its relationship with Wavve. Following the exclusive supply contract with Netflix, SBS is taking steps to reorganize its ties with domestic OTT services. As a result, SBS is expected to fully exit Wavve by the end of the year. There are no exceptions. This covers everything from entertainment shows like 'Running Man', which is Yoo Jae-suk's longest-running program, to dramas such as 'Taxi Driver', which will be produced up to Season 3, and 'The Fiery Priest', as well as educational programs like 'Story of the Day When You Bite Your Tail' and similar shows.
# The start of SBS-Netflix 'big deal'
On December 20 last year, SBS announced the signing of an exclusive supply contract with Netflix through a public notice. Starting this year, it will supply dramas, entertainment, and educational programs to Netflix for six years. Accordingly, SBS will receive production cost support through Netflix for six years. Additionally, from the second half of this year, SBS will simultaneously release its self-produced content worldwide through Netflix.
The contract between SBS and Netflix was regarded as an unprecedented 'big deal' in the industry. This was seen as a positive sign for the market. In fact, SBS's stock price skyrocketed, hitting the ceiling price consecutively from the day of the announcement until the next trading day.
At the same time, this trend was seen as a potential obstacle to the nurturing of domestic OTT services, which continues under the Lee Jae-myung government. Concerns arose that the exclusive supply contract with Netflix alone could lead SBS to withdraw from the domestic OTT Wavve. In response, SBS and Wavve have been refuting these claims by asserting the continuity of their supply.
# Why is SBS excluded from the Tving-Wavve double pricing system?
However, as the merger of Tving and Wavve approaches, signs of SBS's exit from Wavve have again appeared. Last month, Tving and Wavve launched a combined pricing plan, while it was noted that SBS would not be included in this plan. This was contrasted with Tving's offer that allows subscribers of the premium tier 'Double Premium' to use Apple TV+.
According to multiple industry insiders, this is a preemptive measure considering SBS's planned exit from Wavve. The likelihood of SBS's exit was already evident from the discussions around the combined pricing plan. It can be seen that SBS's unwillingness to participate in the domestic OTT merger was predicted early on.
OSEN inquired with both SBS and Wavve regarding the related details. An SBS official stated, 'As of now, nothing has been decided.' The Wavve side also left open the possibility, saying, 'We are continuously discussing to maintain the supply of terrestrial broadcast content.'
('Continued in [Exclusive②] SBS to exit Wavve within the year... Is the integration and nurturing of domestic OTTs at risk?')
[Photo] OSEN DB, provided by Netflix and SBS, source from Tving and Wavve websites.
[OSEN]