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(Photo courtesy = Korea Intellectual Property Office)
Coupang’s entry into the online streaming business has become visible. Coupang’s move to prepare OTT (online video service) similar to Amazon’s ‘Prime Video’ and ‘Netflix’ is being seen everywhere.
Coupang has already registered its trademark with the Korean Intellectual Property Office. The purpose of the company was also added to the bylaws. After 10 years of launching the business, Coupang’s new business is drawing attention to Coupang’s new business, which is causing problems in the market dominated by ‘People of Delivery’ and ‘Yogiyo’ with ‘Coupang Itz’.
According to the distribution industry on the 27th, Coupang added ‘online service provider’ and ‘online VOD content service’ to the statutes on the 13th for commercial purposes.
Previously, from 9 to 12, the patent office applied for brand names such as ‘Coupang Original’, ‘Coupang Streaming’, ‘Coupang Video’, ‘Coupang TV’ and ‘Coupang Play’. Each of these corresponds to the recording and transmission of sound or video, advertising, telecommunications, sports and cultural activities and technical service, respectively.
The industry is putting weight on the possibility of Coupang entering video services like Netflix. In July, Coupang acquired Hooq, a video streaming service provider in Southeast Asia.
▲ Prime Video logo (Prime Video website)
Coupang’s move towards OTT is analyzed to have been influenced by the recent popularity of Netflix and YouTube.
Based on analysis results from WiseApp, a mobile app analytics company, Netflix’s September payment is estimated to have reached 46.2 billion won, 11.9% more than last month (41.3 billion won). The estimated monthly paid payer based on the amount of the payment is 3.36 million. This is almost double the 1.84 million people compared to the same month last year.
On the other hand, CGV decided to cut the number from 35-40, which is 30% of the 119 direct stores nationwide, within three years, from the 26th of this month, from the 26th of this month by the Corona coup 19. As demand for theaters rushes to OTT, a favorable environment has been created to enter the business.
▲ Construction site of Coupang Daegu National Industrial Complex Logistics Center (Reporter Jooh @ Nam, jooh @)
The idea of Coupang’s entry into OTT has nothing to do with Amazon’s ‘Prime Video’ business. ‘Prime Video’ is a video-on-demand internet service developed and operated by Amazon in 2006. It is an online video service that allows you to watch TV shows and movies, and provides content differently based on membership. In the United States, it is competitive with Netflix.
In a way, it’s a natural fit for Coupang, who has been reborn as a retail dinosaur in a startup with Amazon’s benchmarking strategy, to advocate for ‘Prime Video’. Based on the Coupangi platform, which has 25 million members and 10 million users, Coupei, a simple payment service, is trying to become a comprehensive Internet company.
Seung-Woo Yoo, researcher at SK Securities, said: “Because Coupang has steadily increased its loyal customers as an e-commerce that internalizes logistics, Coupang’s OTT service is expected to be relatively easy to get customers. “There is the possibility of adopting a strategy that provides them.”
Coupang’s Amazon benchmarking is not what it was today. Coupang, which started as a social commerce company with WeMef and Timon, gradually gained mass with the launch of ‘Coupang Wow Club’, a paid membership system, and ‘Rocket Delivery’, a express delivery system. This is a benchmark for direct purchase and fast delivery with Amazon’s ‘Amazon Prime’ membership service.
Amazon has about 175 distribution centers around the world. Coupang also secured 168 large and small distribution centers across the country last year. In addition, as a sole distribution company excluding logistics companies, it is building a distribution center with 46 soccer fields, the largest in Korea, in the Daegu National Industrial Complex, and aims to expand local businesses. adding 4 locations in Gwangju and Gimcheon this year.
The fact that the company continued to run deficits after its founding and increased in size is similar to Amazon’s planned deficit strategy. Amazon has also posted operating losses for eight years since its founding in 1994, and Coupang has been losing money since 2015.
A distribution industry official said: “Since Coupang, an Amazon benchmarking company, acquired Hook in Singapore, entry into the video streaming market has been predicted. The problem is that unlike the delivery market of orders with Baemin and Yogiyo, the global company Netflix and Apple TV are In addition to advancing in the market, entry barriers are not as easy as national companies such as Teabing, Wave and Watcha compete “.
