South Korea: South Korea's antitrust regulator has announced a conditional approval for the merger of streaming platforms Tving and Wavve. The condition requires the companies to maintain their current subscription prices through the end of next year.
According to Yonhap News Agency, the Fair Trade Commission (FTC) stipulated that the newly merged entity must keep their existing pricing plans in place until December 31, 2026. Should the entity launch a new integrated service, it must offer either the current pricing plans or introduce similar-tier plans at comparable price levels until the same deadline.
The merger has sparked concerns regarding potential anti-competitive outcomes, with critics cautioning that the integration could diminish market competition and result in indirect price increases. The FTC has highlighted the risk of increased consumer costs if separate subscription options are eliminated in favor of a bundled plan.
Additionally, the FTC pointed out the exclusivity of certain content held by Tving and Wavve, such as live broadcast channels and professional baseball coverage, which may limit consumer options to switch to rival platforms.
"The corrective measures are aimed at preventing possible price hikes from a horizontal merger between OTT operators, thereby protecting subscribers while also preserving the intent of the merger to enhance content production and acquisition capabilities," an FTC official stated.
Industry data indicates that Netflix led the domestic OTT market last year with a 33.9 percent share, followed by Tving with 21.1 percent, Coupang Play at 20.1 percent, and Wavve at 12.4 percent.