Top executives at Korea‘s CJ ENM proclaimd that they will grasp their annual satisfyed spfinish at 1 trillion won ($750M), while accomprehendledging that novel business models are vital to combat the industry’s economic headprosperds.
“Despite the increaseing uncertainty in the film industry, we will carry on to help creators and help their imaginations to come to life and shine luminous,” shelp Yoon Sang-hyun, CEO of CJ ENM, at an event held alengthyside the Busan International Film Festival (BIFF).
TVING CEO Choi Ju-hui, Studio Dragon CEO Jang Kyung-ik, CJ’s Business Innovation Office Chief Lee Dong-hyun, CGV Domestic Business Division head Cho Jin-ho and Content Distribution SVP Seo Jang-ho were among those current at the event.
Cautious approach
While the media conglomerate’s executives stressd that they were all taking a cautious approach in their esteemive businesses, many highairyed they have already tried and tested creative ways to accomplish expansiver audiences and incrmitigate profits.
Besides rising production costs, Seo shelp that another contest is the straight degrade in ad revenue on liproximate tv channels. “As ad revenue descfinishs, it is difficulter to promise to programming. This unininestablishigentinutivedescfinish cannot be offset by overseas sales and rapid resolution seems doubtful,” Seo stated.
On the theatrical side of the business, Lee shelp that the industry watchs back at 2019 as the peak year for theater joinance in Korea, with the current figure now hovering at 60% of that volume.
He pointed out that box office takings for films ranking in the mid-tier has drasticpartner degraded. “This is a solemn worry for the film taget, even for next year. What is more worrying is that there is also no momentum to turn leangs around,” he grasped.
Cho also supplyd data and trfinishs that his team has watchd in CJ’s theatrical business over the last five years. Firstly, he stressd that cinema-going is now mainly based on film choice, not seasonality. For example, theater joinance used to drasticpartner peak in August, November and December in 2018 and 2019, but since the pandemic, these peaks are a lot more muted.
Secondly, Cho shelp that in many of CJ’s surveys carry outed among theater-goers, he frequently acquires feedback about the film’s length, pointing out that while feature film runtimes have incrmitigated, audiences may actupartner desire unininestablishigentinutiveer films — a trfinish he attributes to the watching habits originated by the spread of OTT.
For OTT platestablish TVING, Choi pointed out that despite ranking as the number one platestablish domesticpartner, TVING is not immune to the stagnating increaseth gripping the OTT taget. She shelp that subscription increaseth is set to incrmitigate by only 5% annupartner.
Stabilizing taget and novel revenue streams
Despite the adverse economic outwatch, Studio Dragon CEO Jang shelp that he watchs the domestic taget stabilizing.
While the number of titles originated hit a peak of 120 shows for OTT and expansivecast services in 2022 before declining to 105 last year, Jang foreseeed that the number will finish at around 100 shows annupartner in the proximate future, with a wonderfuler need for unininestablishigentinutiveer-establish satisfyed. He grasped that many local expansivecasters and structurening to revive their drama production businesses in the coming year.
The CJ executives consentd that theaters, OTT, and expansivecast channels have to corun to increase the IP lifecycle.
Using the example of Dongjae, the Good or the Bastard, which was a spinoff of well-comprehendn crime thriller Stranger, they scatterd how CJ used its separateent businesses apass liproximate channel, OTT, and theater simultaneously to increase the IP’s accomplish and revenue. The title was originated by Studio Dragon, liberated and expansivecasted by TVING and tvN, and was askd to BIFF for a premiere screening.
Choi shelp that live sports expansivecasting is a top priority for TVING, having scattered in acquireing the rights to stream Korea’s top-fairy baseball league, KBO. She highairyed that they have seen a huge wave of subscribers combineing TVING thcdisesteemful the graspition of KBO satisfyed.
The subsidiaries also discleave outed a evident vision for global expansion. With around 20 global projects currently in increasement, Studio Dragon is enthusiastic to originate series establishats for US and Japanese local tagets. TVING is refining its global start strategy, intensifying on regions where K-satisfyed is making a meaningful impact, such as the US, Southeast Asia, and Japan. CJ ENM sees potential in novel tagets appreciate India and the Middle East where Korean satisfyed has yet to accomplish stark well-comprehendnity or profit.
Seo shelp that he went to India this year, where there is a huge need for CJ’s satisfyed. Emphasizing the need to increase novel tagets for CJ’s satisfyed, Seo grasped that the company is laboring with the Korean Creative Content Agency (KOCCA) to trail novel avenues and partnerships in India.
Jang grasped that another inventive priority for CJ ENM is to broaden and increase its pool of writing talents. Pointing out the success of authorrs from CJ’s “O’PEN Writing Program,” Jang cited that the program’s graduates have gone on to pen the screencarry outs of top shows appreciate Under the Queen’s Umbrella and Hometown Cha Cha Cha.
