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Location: Fordham Law School Building, Skadden Conference Center, 150 W 62nd Street, New York, NY 10023
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Thursday, May 5 • 4:15pm - 4:35pm
A case study on Korea Telecom’s smart media business: Based on business model innovation framework

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The aim of this paper is to analyze a use case of Korea Telecom’s innovation of the smart media business model. The term of ‘smart’ refers to ‘Internet connected’ in Korean media landscape. For this, a theoretical logic is approached based on the theory of business model innovation. Based on this backdrop, this study focuses on analyzing KT’s smart media business models chronologically in conjunction with the related type of the business model innovation.The finding shows, KT’s first stage of business model innovation is the launch of satellite TV. But it suffers from fierce price competition with cable TVs, even though KT tries ‘smart’ media activities like pseudo-interactivity, SMS, and HD quality offerings. After KT’s suffering from red ink with this, its second stage of business innovation is the launch of IPTV with unique ‘multicasting’ technology. As KT has still the problem of key channel sourcing, KT’s third stage of business model innovation is the launch of hybrid platform focusing on analog cableTV market, which results in its earnings and PayTV “monopsony” in Korea.During this monopsony time, KT plans to prepare for new competition with global ‘smart’ TV players like Google, Apple, and Netflix. In order to utilize external resources like User Generated Content (UGC) in fourth stage of business model innovation, KT launches ‘Open store’ on VOD section of IPTV and gives software development toolkits (SDKs) to long tail content creators. Especially based on the hybrid platform, KT utilizes not only the technical advantages of digital TV, but also invests in the HD and UHS quality content and channels. It is the fifth stage of integrated business model. Lastly, KT fully utilizes its previous business models and leverages its strong bundling power in front door to maintain the co-opetition (cooperation + competition) relationship with Over-The-Tops (OTTs).

Authors
MS

Minzheong Song

Hansei University

Moderators
avatar for Gigi Johnson

Gigi Johnson

Inaugural Director, UCLA Center for Music Innovation
Digital disruption, social change around technology in industries and organizations. What the heck is happening in music in the US and globally. What the heck is happening in higher education.


Thursday May 5, 2016 4:15pm - 4:35pm
Room South Lounge Law School
  • Manuscript # 1066
  • Session # C31

Attendees (5)