Watcha, a Korean company that runs the content recommendation service Watcha Pedia and the OTT platform WATCHA, announced on the 31st that it reached its break-even point in the third quarter. After achieving a monthly break-even (BEP) milestone last June, Watcha reached quarterly break-even for the first time, thanks to ongoing efforts to boost profitability and strengthen its competitive edge.

With the rising costs of content production and supply, Watcha shifted its focus last year to prioritize profitability and moving into surplus. To achieve this, the company launched new business models, such as individual video content purchases (TVOD) and webtoon pay-per-view (PPV) purchases. As a result, sales from TVOD and webtoon purchases surged by 302% and 1,522%, respectively, in the third quarter compared to the same period last year. Individual video purchases allow viewers access to not only the latest movies but also older films and series, while the number of webtoon titles available on PPV grew by about 300% year-over-year.

Improving cost efficiency in marketing and operations also contributed to reaching the break-even point. Watcha’s marketing synergy with Watcha Pedia includes monthly events that let users experience a range of Watcha content directly, engaging loyal customers with events that span both online and offline channels.

In September, Watcha expanded into new areas with the launch of ‘SHORTCHA,’ a platform for short dramas. SHORTCHA now offers a selection of short dramas from Korea, China, the U.S., and Japan, with an expanding lineup across a range of genres. Additionally, as the first Korean OTT service to enter overseas markets in 2018, Watcha is strengthening its international presence by enhancing brand awareness and expanding its K-content offerings.

Watcha stated, “While we faced challenges in fund management due to rising competition in the content market and a contracting investment landscape, we achieved an operating profit surplus. This achievement demonstrates our potential as a sustainable content business, and we’re committed to finding new growth engines and expanding them even further.”