KOREA TELEKOM AND PIXELLOT - CRACKING THE CODE FOR MONETIZING LONGTAIL SPORTS CONTENT

Introduction

HOGAK was set up to revolutionize the way longtail sports content is produced, distributed, and monetized in Korea. By leveraging advanced AI-driven technology and tapping into emerging markets such as women, youth, and local sports, as well as tournaments, the initiative addresses the growing demand for accessible and engaging sports content.

Background

Pixellot, founded in 2013, has become the global leader in automated sports production, enabling the capture, distribution, and monetization of over 10,000 sports events daily across 80 countries.

Recognizing the untapped potential in Korea’s emerging sports segment, Pixellot’s partner YST initiated a joint collaboration with KT Skylife and HCN, subsidiaries of Korea Telecom (KT), to create Hogak, a platform dedicated to democratizing sports content and engaging niche audiences. In June 2024, KT Skylife acquired a significant stake, positioning Hogak as a primary hub for Korean emerging sports, with over 50,000 viewership hours and 500,000 views per month.

Challenges

• Limited Market Penetration: The fourth-tier and youth-level sports leagues lacked adequate exposure, leading to missed revenue and engagement opportunities.
• Traditional Production Costs: High production and broadcasting costs made it unfeasible to cover a wide range of sports events.
• Demographic Shifts: Gen Z audiences preferred streaming platforms and short-form, interactive formats, which were underserved by traditional sports broadcasters.
• Brand Differentiation: KT Skylife needed unique offerings to stand out in a competitive telecom and broadcasting market.
• Social Responsibility: Gender equity and youth engagement were emerging priorities, requiring new initiatives to promote diversity and inclusivity in sports coverage.

Solution

Pixellot’s AI-Automated technologies enabled Hogak’s to deliver:

• Cost-effective Production: The automated systems replaced traditional crews, reducing the cost of capturing and broadcasting games.
• Expansive Coverage: With unlimited scaling abilities, thousands of events across various sports, including youth and women’s leagues, were brought to audiences.
• Interactive and Engaging Formats: The platform incorporated features appealing to Gen Z, including short-form highlights and interactive streaming options.
• Strategic Monetization: Revenue streams expanded through premium subscriptions, advertising packages, and partnerships with sports clubs and federations.
• Corporate Synergy: Hogak integrated with KT’s broader business activities, such as connectivity services and CSR initiatives.

Impact

• Enhanced Brand Positioning: KT Skylife emerged as an innovation leader by aligning with youth-friendly and gender-inclusive content.
• Revenue Growth: The initiative drove incremental revenue through new subscriptions and advertising opportunities, setting a path for long-term growth.
• Viewership Expansion: Monthly content production surged, attracting a larger and more engaged audience base.
• Social Equity: Previously underrepresented women’s sports gained unprecedented visibility, supporting broader societal goals.

Conclusion

The KT Skylife and Pixellot partnership exemplifies how innovation can unlock new markets and reshape traditional industries. By addressing both commercial and societal objectives, the collaboration has set a benchmark for leveraging technology to democratize content and engage underserved audiences. This case demonstrates the potential for strategic partnerships in navigating the evolving digital media landscape.