Watcha reaches break-even point in Q3 2024, marking a financial milestone

Watcha, the South Korean content recommendation and over-the-top (OTT) service provider, has reported a significant milestone by reaching its break-even point in the third quarter of 2024. This marks a noteworthy achievement in the company’s financial journey, having earlier secured monthly break-even status in June of the same year. With a strategic focus on profitability, Watcha has introduced innovative business models that have contributed to this financial success.

The company’s initiatives to offer transactional video-on-demand (TVOD) and pay-per-view (PPV) webtoons have seen remarkable growth. TVOD sales surged by 302%, and PPV webtoon sales increased by an extraordinary 1522% compared to the third quarter of the previous year. These offerings allow users to purchase individual video content and access an expanded library of webtoons, which has grown by 300% in terms of available works.

Watcha’s success is also attributed to its efforts in enhancing marketing and operational efficiency. The company has concentrated its resources on fostering customer engagement through budget-conscious marketing strategies and diverse customer events. September witnessed the introduction of “Shatcha,” a short drama platform featuring a diverse array of content from multiple countries, including Korea, China, the USA, and Japan. This expansion aims to further reinforce Watcha’s content lineup.

Since venturing into overseas markets as South Korea’s first domestic OTT service in 2018, Watcha has been steadily building its global presence. The company continues to broaden its reach by expanding its Korean content offerings for international audiences. This strategic expansion underscores Watcha’s commitment to growing its footprint on a global scale.

A representative from Watcha commented on the company’s financial turnaround, stating, “Despite the intensifying competition in the content market and the limitations of capital operation, our operating profit has turned positive.” The representative further emphasized Watcha’s dedication to seeking new growth engines to solidify its status as a sustainable entity within the content industry.

Watcha’s origin dates back to 2010 as a content recommendation platform, subsequently transitioning to offering OTT services in 2016. Its evolution has been supported by an extensive repository of over 720 million content evaluation data points. Last year, the company achieved its highest annual revenue, amassing 73.4 billion won, demonstrating its resilient growth trajectory.

Source: Noah Wire Services