Studio pacts with Daum on content
Sony Pictures Television Intl. and Korean Internet portal Daum Communications have pacted to provide free video-on-demand content on Daum’s Web site.
The online streaming of selected SPTI titles will be presented as part of Daum’s soon-to-be-launched Video Pot service. It will be ad-supported, eliminating the need for any fees. Geofiltering will ensure that the service is available only to customers located in South Korea.
The pact ranks as the first free video-on-demand licensing deal between a Korean firm and a Hollywood studio. Selected titles will be licensed from SPTI to Daum on an annual basis.
SPTI is touting the pact as a new business model for VOD providers in Asia.
“We feel such a model represents a win-win proposition not just for content licensee and licensor, but more importantly, for advertisers and consumers as well,” said Ross Pollack, SPTI senior vice president for distribution in Asia. “Consumers will be able to access free, quality content, and advertisers will be able to reach their target market.”
Daum Communications was launched in 1995 and has grown to attract 55 million members in South Korea, the U.S., Japan and China. Recently, the company’s TV Pot service, which focuses on user-generated content, has grown to attract 5 million visitors per day.