KT accelerating drive to expand media biz
KT is speeding up its drive to expand its global media business, as the telecom firm seeks to reinvent itself as a digital platform company by shifting its focus to media content.
Early this week, KT took over a 100 percent stake in Alticast’s media business Altimedia for 11.26 billion won ($10.08 million). Altimedia is a tech firm that sells security-oriented products to be embedded with various media-related products.
The company has offices in Vietnam and the Netherlands and also has some business ties in other countries in Asia and Europe.
Last year, KT launched its internet protocol television (IPTV) business in Thailand through collaboration with Altimedia. KT has worked with Altimedia since the early stages of its IPTV business, which has accounted for a substantial portion of the solutions firm’s sales here.
KT said the acquisition was aimed at obtaining key media technologies to strengthen the company’s media platform capabilities and scale up its media business overseas.
“KT plans to use Altimedia’s global connections and bases to expand its media business globally,” a KT official said. “We are planning to expand in both media systems and content.”
The country’s dominant fixed-line operator led by CEO Ku Hyeon-mo is seeking to integrate its diverse array of media businesses and accelerate growth. In January, the company launched its new affiliate KT Studio Genie in charge of content production. KT’s businesses in IPTV, satellite broadcasting and over-the-top (OTT) media services will likely be placed under the new firm.
“Creating a media-centered platform is the most important for becoming a digital platform company,” Ku said in a press conference last month. “KT will change into a digital platform company by adding content to the existing media platform.”
Media is a key area of focus as KT is hoping to shed its reputation as an old-fashioned telecom operator and make a leap t o become a global digital platform company. Media businesses were key drivers of KT’s earnings in 2020. IPTV sales grew 7.7 percent in 2020 from a year earlier, as subscribers increased based on its expansion of offered content.
KT has over 40 affiliates in a wide range of sectors, including broadcasting, online services, finance, security, real estate development, advertising and submarine cables. It is seeking to sell off businesses unrelated to future growth engines. Alticast, meanwhile, is set to focus on the mobility sector with the sale of its media business.