Solaire Partners Boosts Korean IPTV Sector with $28 Million Investment in VOD Content

Solaire Partners, a subsidiary of K Wave Media, has been appointed as the general partner for a KRW 40 billion (approximately USD $28 million) fund, collaboratively financed by Korea’s leading IPTV operators—KT, SK Broadband, and LG Uplus. The fund underscores a strategic approach to invigorate the IPTV Video on Demand (VOD) sector amidst competitive pressures from over-the-top (OTT) platforms, aiming to sustain Korea's video content industry ecosystem.

The "Solaire IPTV Video Investment Fund" is designed to secure premium content tailored for IPTV services while expediting the release of new titles to viewers. The IPTV sector has encountered notable revenue decreases in paid VOD, significantly in the film segment, primarily due to delays in content distribution and a consumer shift toward OTT platforms. As a result, IPTV's ranking in methods for movie viewing fell from the second most popular in 2018 to fourth place by 2023.

Solaire Partners plans to focus its investments on high-performing genres within the IPTV paid VOD landscape. The firm intends to adjust holdback periods via primary investments, allowing for quicker content dissemination. Additionally, diversification across dramas, variety shows, and other genres forms a core part of the strategic investment portfolio. The company aims to finance 3-4 films annually as a primary investor and targets investment in AI, VFX, and content technology firms to drive future growth.

Backed by over 13 years of data-driven quantitative analysis and extensive qualitative insights from a seasoned team, Solaire Partners boasts a successful track record with blockbuster films like 'Parasite' and '12.12: The Day.' This appointment follows K Wave Media's recent acquisition of Rabbit Walk, further cementing the company's strategy to create a fully integrated entertainment and digital asset ecosystem.

The establishment of this IPTV fund marks an initial step in fostering a symbiotic environment where platforms and content creators can thrive, enhancing viewer satisfaction. Solaire Partners is committed to leveraging its content investment expertise and vast network to spur the resurgence of the IPTV market and amplify the global reach of Korean content.

K Wave Media, a publicly traded entity, focuses on producing, distributing, and monetizing high-quality content across diverse platforms. Through strategic initiatives, the company aims to maximize shareholder value and ensure synergies among its diverse portfolio.