RAPTEL Surpasses 1 Million MAU: 'Specialized Strategy Success' Grows Alone Amidst Local OTT Struggles

As local OTTs (Over-the-Top services) struggle with deficits and declining subscribers due to competition from global giants like Netflix, 'RAPTEL', specialized in Japanese animation, has surpassed 1 million monthly active users (MAU), drawing attention as a success story of a specialized strategy.

According to the app analysis platform Mobile Index on the 12th, RAPTEL's domestic app MAU in July this year reached 1,018,889, a 15.9% surge compared to the previous month (878,227). This marked a historic moment as the MAU exceeded 1 million for the first time since statistics were compiled.

Steady Growth from 600,000 to 1 Million in 4 Years

RAPTEL's growth trajectory is quite impressive. In March 2021, RAPTEL's MAU was around 600,000, showing a gradual but consistent upward trend. Notably, the MAU, which had been stable in the late 700,000s until June this year, surged by over 140,000 in just one month last month, attributed to specific events or content.

This is evaluated as a rare case of maintaining stable growth by focusing on a specific genre while large OTTs offering various genres like movies, dramas, and entertainment are struggling. It serves as a textbook success model demonstrating how effective targeting a niche market can be.

Profitable at 9,900 Won with Ad-Free Premium Service

RAPTEL launched in 2016 as an OTT service and currently operates on a paid subscription model at 9,900 Won per month (standard). Unlike other OTT platforms that adopt low-price policies to secure price competitiveness, RAPTEL focuses on premium services.

The key differentiating point is that all works can be enjoyed without advertisements. Additionally, through a deep learning-based recommendation algorithm, it precisely suggests animations tailored to user preferences. Thanks to this technology, users can easily discover not only 'new releases by season' but also older works or hidden masterpieces they might enjoy, leading to high satisfaction.

AniPlus's Exclusive Distribution Network: Key to Competitive Advantage

The success of RAPTEL is backed by the strong distribution network of its parent company, AniPlus. AniPlus holds a unique distribution network and rights that bring in 70-80% of new Japanese animations to the domestic market.

In 2023, it acquired its competitor, AniMax, raising its cable channel market share to 85%, further solidifying its market dominance. As a result, RAPTEL was able to secure a solid core fan base by receiving exclusive supplies of mega hits like 'Demon Slayer', 'Attack on Titan', and 'Haikyuu'.

This ability to secure exclusive content has become a key driver for recording profits, a stark contrast to other local OTTs that suffer from excessive investments in content acquisition leading to deficits.

Expanding Original Production to Cultivate New Fan Base

Recently, RAPTEL has actively expanded beyond simple distribution to original production. Based on its experience in producing the BL (Boys' Love) genre, it introduced its first adult female-oriented romance animation, 'Red Fox', in May this year.

Based on a Naver webtoon, this work successfully attracted new customers, including women in their 20s and 30s, by combining an Eastern-style worldview with delicate emotional lines, going beyond the existing Japanese animation fan base.

In fact, among RAPTEL's users last month, the female ratio was about 60%, higher than that of males. This signifies a meaningful change showing the expansion of female users in a traditionally male-centered animation market.

Achieving 300,000 MAU in Southeast Asia Within a Year of Entry

RAPTEL is also showing rapid results in overseas market penetration. After entering six Southeast Asian countries (Malaysia, Thailand, Indonesia, Vietnam, the Philippines, and Singapore) last year, it secured a local MAU of 300,000 within a year.

In February this year, it introduced paid subscription products locally and is strengthening IP (Intellectual Property) internalization through webtoon-based animation production projects like 'Tiger Comes In' and 'Pyramid Game'.

The strategy of establishing a complete value chain from production to distribution to secondary consumption is evaluated as effectively broadening the connection with global fandom.

The Power of Loyal Fandom: Culture of Avoiding Illegal Viewing

An AniPlus official explained the success factors of RAPTEL, stating, 'Unlike dramas, animation has a strong loyal fandom, leading to less platform migration, and the habit of watching the same work on RAPTEL has been established.'

It emphasized that 'the tendency of fans to avoid illegal and free viewing has led to a stable user base.' This shows that the unique cultural characteristics of animation fans significantly contribute to the success of the paid subscription model.

In the Southeast Asian market, it was noted that 'the proportion of illegal content is high and the paid subscription culture is weak, but a model that allows legal free use after watching ads maintains natural inflow,' indicating a flexible strategy suited to local conditions.

The Chain of Struggles Among Local OTTs, Including Watcha's Rehabilitation Process

In contrast to RAPTEL's success, the struggles of other local OTTs are deepening. Watcha, once regarded as a first-generation OTT, faced an extreme situation of entering corporate rehabilitation procedures earlier this month.

CJ ENM's Tving is also suffering from serious management deterioration, with cumulative deficits reaching 100 billion Won last year. Tving and Wavve announced plans to merge in the second half of this year to compete against Netflix, but the loss of exclusive rights to terrestrial content and reduced investment in original content make the possibility of a rebound uncertain.

Netflix's Overwhelming Market Dominance

Meanwhile, Netflix has completely dominated the market with a domestic subscription rate of 54% in the first half of this year. Recently, the effect of its partnership with Naver Membership has further boosted both user numbers and loyalty, widening the gap with local OTTs.

An industry insider stated, 'In a situation where Netflix dominates the market, competition will become increasingly difficult without differentiated content and service strategies.'

Lessons from the Specialized Strategy: Importance of Targeting Niche Markets

RAPTEL's success story provides important implications for the domestic OTT industry. It proves that a specialized strategy focusing on specific genres or targets can be more effective than a direct confrontation with global platforms like Netflix.

It shows that securing a clear competitive advantage in one area is the key to sustainable growth, rather than trying to do everything and ending up doing nothing well.

Synergy of K-Content and Japanese Animation

Notably, RAPTEL is expanding not only into Japanese animation but also into producing animations based on Korean webtoons. This is creating a new business model that combines the global popularity of K-content with the production know-how of Japanese animation.

This strategy of maximizing added value through the transition from a simple distributor to a content producer is expected to become a significant growth driver in the future.

Growth Potential in the Global Market

The rapid growth seen in Southeast Asia is an important indicator of RAPTEL's potential for global expansion. The cultural universality of the animation genre combined with the popularity of K-content has proven that it can demonstrate sufficient competitiveness in overseas markets.

If it continues to expand services to more regions and strengthen localization strategies, there is potential to grow into a global animation streaming platform.

New Survival Strategy for the Domestic OTT Market

RAPTEL's success suggests a new strategic direction for survival in the domestic OTT market. Rather than reckless competition with Netflix, it is essential to build a unique domain and secure overwhelming competitiveness in that field.

It also shows the need to transition from a simple platform business to a comprehensive entertainment company encompassing content production and IP development. This is expected to become an important success model for other local OTTs to reference.

RAPTEL's surpassing of 1 million MAU is a significant milestone that goes beyond mere numerical achievement, presenting a strategic direction for local OTTs to survive in global competition. The growth model through specialization and differentiation is opening new possibilities for the entire domestic content industry.