Fates diverge among Korean streaming platforms
Watcha, one of South Korea’s earliest streaming platforms that peaked in the early 2020s, has entered corporate rehabilitation proceedings, even as domestic competitors see rapid growth.
The Seoul Bankruptcy Court announced on Aug. 6 that it would initiate rehabilitation procedures following a petition filed July 8 by Enlight Ventures, one of Watcha’s investors. Under South Korea’s corporate rehabilitation laws, any creditor holding more than 10 percent of a company’s equity can request rehabilitation without the company’s consent.
Watcha will now undergo court-supervised restructuring and debt adjustment. The company is required to submit a list of secured rehabilitation creditors and shareholders by Sept. 1. The final rehabilitation plan must be submitted by Jan. 7, 2026, after which the court will decide whether to approve the plan. If rehabilitation is deemed unfeasible, Watcha could be forced into bankruptcy proceedings.
A major factor behind the recent push for Watcha’s rehabilitation appears to be the 49 billion won ($35.4 million) in convertible bonds issued in 2021 that matured this year. Watcha has failed to repay both principal and interest and was unable to secure an extension.
The company’s strategy of targeting independent films and series — a niche segment — amid intensifying competition is further seen as a factor in its financial struggles.
“In its early days, Watcha stood out for its unique curated library,” Jung Duk-hyun, a pop culture critic, told The Korea Herald. “For serious viewers, it offered classic or hard-to-find titles — hidden gems that weren’t available elsewhere. That approach initially drew a lot of attention.”
However, Jung noted that Watcha’s programming often skewed too niche.
“Much of its content consisted of older classics or obscure titles. For example, the platform featured a notable lineup of Japanese drama series — content now widely available on Netflix, but at the time giving Watcha a distinctly niche, almost 'maniac' appeal,” he said. “While this identity was fresh and unique, it didn’t always resonate with a broader audience. That limited appeal likely prevented Watcha from expanding its user base.”
Industry insiders also point out that competing with Netflix has become extremely difficult for local streamers without deep financial backing, as the global streamer continually raises the bar for producing streaming originals. Among Korea’s major streaming platforms, Watcha is the only one operating independently, while Coupang Play is backed by Coupang, Tving by CJ and Wavve functions as a joint venture between terrestrial broadcasters KBS, MBC and SBS and telecom operator SKT.
One streaming official explained on the condition of anonymity, “Netflix can spend on one project what local streamers spread across several, and despite producing originals, domestic platforms can’t match Netflix’s benchmark, leaving viewers largely ignoring local streamers' new content."
As of the end of last year, Watcha reported negative equity of 87.5 billion won. Its monthly active users also plummeted from 1.33 million in February 2022 to 470,000 in May this year, according to Mobile Index data.
Meanwhile, domestic competitors have been gaining traction via diversifying strategies.
Tving's monthly active users reached 7.49 million as of the end of July, up 15.3 percent from 6.5 million in April. The spike coincides with a full-scale collaboration with Wavve starting in May, which involved sharing terrestrial TV content, such as JTBC, MBC and KBS content ahead of the Tving-Wavve merger, approved under conditions in June. Wavve also saw notable growth in monthly active users during the same period, rising 9.5 percent from 4.03 million to 4.41 million.
Coupang Play also recently reported consistently strong showings, logging 6.8 million subscribers in April and 6.89 million in July, buoyed by successful variety show originals like "SNL Korea" and aggressive sports coverage, including Son Heung-min’s final Tottenham Hotspur match.
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