From “Watcha!” to “Oops!”: Failure Factors and Recovery Strategies for the Domestic OTT Service Watcha, Overpowered by Global OTT Giants

The domestic OTT service ‘Watcha’ began in 2011 as a movie rating and recommendation platform, transitioning to WatchaPlay in 2016. In 2020, it successfully secured Series D funding and achieved the second-highest paid subscription retention rate in the country. However, its growth has since stagnated in the face of competition from Netflix and other domestic OTT services, and it now faces significant challenges due to operating losses and capital erosion. With a sharp decline in company valuation, difficulties in securing investment, and attempts to explore exit strategies and self-rescue measures, the company continues to struggle, including the departure of key personnel. This paper analyzes the factors behind Watcha’s growth and struggles, proposes management strategies considering technological trends, competitive market shifts, and limitations in the M&A market, and explores revenue diversification and strategic partnerships centered on a comprehensive entertainment subscription platform and personalization technology. It also reviews relevant government policies affecting the OTT industry.