[비즈한국] As short-form (videos around 15 seconds long) content, pioneered by Chinese video platform TikTok, has become the mainstream, major domestic platform companies have also jumped into the competition. Naver035420 and Kakao035720 are reinforcing their short-form strategies to strengthen their businesses. With the "Big Three"—YouTube, TikTok, and Instagram—dominating global short-form trends, the companies aim to secure app dwell time and translate it into advertising and commerce revenue. There is also heated interest in the content industry regarding short-form dramas (dramas with episodes ranging from several tens of seconds to around 10 minutes), which have caused a sensation in China. Domestic OTT services and production companies are eyeing the potential for success in both domestic and international markets by leveraging emerging platforms and original content.
From Naver's "Clip," Kakao's "Today's Shorts," and Danggeun's "Stories" to platforms dedicated to short-form dramas like Watcha's "Shortcha," D&C Media263720 subsidiary "PulsePick," and Spoon Labs' "Vigloo," these short-form platforms have all been launched in South Korea within the last year and a half. As short-form content has been proven an effective tool for platform business, domestic portals and various platforms are scrambling to enter the market. The strategy is to bind users with short yet addictive content amid the intensifying competition for app dwell time.
Media consumption habits are shifting toward a preference for short, fast-paced content. According to Mobile Index, the combined average daily usage time per person for Naver and KakaoTalk does not even reach one hour. In contrast, Instagram, which offers the short-video content "Reels," and TikTok, which has short-form as its primary weapon, had average usage times of 50 minutes (as of this February) and 91 minutes (as of last October), respectively. For YouTube content, including "Shorts," it was found that 3 out of 5 Koreans spend more than 2 hours a day consuming it. Analysts suggest that finding a breakthrough to increase user frequency and time spent is urgent to revitalize advertising, the primary source of income for domestic platforms. When considering integration with commerce businesses, short-form is a market that platform companies cannot afford to abandon.
'Latecomers' Naver and Kakao are going 'all-in'
Naver and Kakao are devoted to growing the footprint of their short-form services. Naver is accelerating creator acquisition by running challenger programs related to "Clip," a short-form platform launched in the third quarter of last year. Kakao plans to bring "Today's Shorts," a video service currently offered in the Daum portal's short-form tab, into KakaoTalk within the year.
Currently, Naver provides short-form content on its portal and Naver app. It places more weight on the mobile app. On the portal, Clip videos are handled in one corner (“Daily Short Fun”) at the bottom of the Newsstand and Shopping sections, whereas in the mobile app, they are placed alongside the "Naver Plus Store," "Home," and "Content" tabs in the home feed. The layout is designed so that videos are automatically exposed along with popular cafe and blog posts after just one or two scrolls on the main screen, without even needing to move to the Clip tab.
If last year was for taking the first step, this year is focused on expansion. At the end of last month, Naver linked the Clip service to its "AI Briefing," which was released by incorporating generative AI and personalized recommendation technology into its search service. As of the 10th, if you search for "women's professional volleyball," you can find edited highlight videos of the championship series right after the professional league information and the women's league schedule/results. This is displayed before the news section announcing the integrated championship win of Heungkuk Life Insurance.
The company explains that it considered scalability to revitalize the search ecosystem while maintaining the usability of existing searches. Naver stated, "(AI Briefing) will be introduced in various forms optimized for each type, such as 'short-form content' that introduces trending topics," adding, "We plan to enhance personalized recommendations in the future to better reflect user interests."
Kang Jung-soo, Director of Media Sphere, viewed that short-form consumption is directly linked to changes in search habits. Director Kang assessed, "The expansion of short-form consumption and participation is influencing the industry and culture at large," adding, "Younger generations show differences from previous generations in how they use search services. The influence of short-form on society, the economy, and mobile services is making Naver, Kakao, and Danggeun actively utilize it."
Kakao, which aspires to be a comprehensive content platform, has also begun full-scale reorganization related to short-form. With the full redesign of its mobile app in January for the first time in 9 years, it focused on increasing the touchpoints between users and the Daum short-form service. Currently, in the Daum app, users can watch short-form videos created by individuals or media channels by scrolling down the feed on the basic "Home Tab" or clicking the "Content Tab."
The short-form service will also be integrated into KakaoTalk in the second half of this year. Kakao announced that it will establish a "Discovery" area that encompasses its content sectors, including short-form, during the KakaoTalk reorganization in the third quarter. In the revamped KakaoTalk, various formats of content are expected to be provided in a feed format.
Following her introduction of the Discovery area at the earnings conference call in February, Kakao CEO 정신아 ( 정신아) explained at the regular shareholders' meeting late last month, "We are preparing a feed-type service where relationships, which were centered on acquaintances, will be expanded to non-acquaintances based on AI, and where images, short-form, and AI content can be discovered naturally beyond anniversaries like birthdays."
'Domestic' short-form dramas also 'starting engines'
However, there are still limitations in expanding influence. As of last December, Naver Clip saw a 7-fold increase in views and a 5-fold increase in both channel numbers and content production compared to the same period the previous year, and Kakao also started a monetization program with content providers in April last year, but the level is difficult to compare with existing major players in terms of metrics or performance. Complaints are also emerging regarding the repetitive recommendation of irrelevant content, lack of diversity, and the high proportion of advertising content. There is also concern about exposure to provocative short-form videos even on portals.
Compared to general short-form content, platforms targeting the recently emerging short-form drama sector are also attracting attention. Short-form drama is a field that is exploding in popularity in China. As users feeling fatigued by short and repetitive content appeared, demand emerged for short yet story-driven content. With each episode lasting 1 to 5 minutes and a "refreshing" pace, it does not require high concentration, and it is rapidly becoming popularized by having advantageous revenue models such as paid episode purchases and performing advertising missions.
PulsePick, under a production company, and Vigloo, from Spoon Labs which started as an audio streaming service, are touting high-quality content differentiated from existing provocative short-form content through collaborations with famous production companies in addition to their own intellectual property (IP). PulsePick stated, "After the service launch, we are growing rapidly, recording 7th place in the Google Play Entertainment category. We will showcase proven quality and original storytelling that could not be seen in existing short-form dramas."
However, this field is also at an early stage compared to China's leading platforms like TikTok and Kuaishou. Some point out that there is a lack of long-term competitiveness compared to China, which is focused on securing market dominance by introducing government-level policies to encourage the development of short-form dramas. Oh Chang-hak, a professor at the School of Media and Communication at Kwangwoon University, pointed out at a National Assembly forum on the 1st, "The short-form drama market is a significant opportunity for Korean content to evolve," adding, "Legal and economic support is needed in the initial market." An industry official noted, "In Chinese platforms, the production period including filming and post-production is about 15–20 days," adding, "Production costs are low, so the influx of producers is active."