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SK Telecom-Walt Disney Joint Hands

Posted: May 14th, 2010, by Yunho Chung

Second left is Choi See-Jong, CEO of KCC (Korea Communication Commission)
and to his right is Andy Bird, Chairman of Walt Disney

Why did Andy Bird, Walt Disney’s chairman visit Seoul?
On May 11th, SKTelecom and Walt Disney completed signing of their joint venture company PP(Program Provider). The joint venture PP was made to establish Disney’s content broadcasting for Korea’s cable TV, IPTV, and satellite DMB, and also for subscriber based mobile phone VOD service. They are planning to launch two Walt Disney channels next year, and targeting the 3S (3screens) mobile phones, TV, and PCs. This will also mean the world’s first movie contents program provider for mobile phones.

Before, Disney had to retransmit their contents through local cable companies, but now they will be able to broadcast their contents directly. And with the broadcasting service experience and expertise of SKT, Disney’s contents are expected to be aired in a more Korean viewer-friendly method.

It has been revealed that SKT has the leading shares of 51% and Walt Disney has 49% of their joint venture company, and also planning to appoint the CEO form SKT.

They are certainly expecting to generate more shared profits as Disney fosters a more Korean suited content delivery, but there are also individual interests at hand.
Andy Bird has expressed their desire to strengthen Disney’s international competitiveness and business capacity through this joint venture.

Whereas, Choi See-Jong, CEO of KCC (Korea Communication Commission) indicated hopes that Walt Disney will support further overseas expansion of Korean broadcasting content.

SKT and Walt Disney have also stated that they are planning to further their cooperation in content development into games and other diverse fields. How will all this turn out? We will just have to wait and see. Nonetheless, the joining of hands between a world major studio and Korea’s largest telecommunication operator is surely going to make waves for the domestic media market.

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