Watcha

Building on the success and rich data portfolio of its recommendation engine, the company expanded into the competitive over-the-top (OTT) market in 2016 with the launch of its subscription-based streaming service, also named Watcha (previously Watcha Play). This video-on-demand platform allows users to stream a wide catalog of movies, dramas, documentaries, and animations. The business model generates revenue through tiered monthly subscriptions and, more recently, has diversified to include transactional video-on-demand (TVOD) and pay-per-view (PPV) options for individual content purchases, including webtoons. This hybrid approach allows the company to cater to a broader audience, from avid bingers to casual viewers.

A key differentiator for Watcha is its "long-tail strategy," focusing on a vast and diverse library that includes niche genres, classic films, and independent productions, rather than solely competing on mainstream blockbuster releases. This caters to cinephiles and viewers with specific tastes. The service's recommendation algorithm is a significant asset, with the company claiming a higher accuracy in predicting user preferences compared to major competitors. Watcha also acts as a content distributor, acquiring titles from international film markets, and produces its own original content. In 2022, there were reports of a potential acquisition by LG Uplus, though the deal did not proceed. Following a period of financial difficulty, Watcha implemented significant cost-cutting measures and focused on new revenue streams, achieving its first quarterly break-even point in the third quarter of 2024.