High executives at Korea‘s CJ ENM introduced that they are going to retain their annual content material spend at 1 trillion gained ($750M), whereas acknowledging that new enterprise fashions are essential to fight the business’s financial headwinds.
“Regardless of the rising uncertainty within the movie business, we’ll proceed to help creators and allow their imaginations to return to life and shine vibrant,” mentioned Yoon Sang-hyun, CEO of CJ ENM, at an occasion held alongside the Busan Worldwide Movie Pageant (BIFF).
TVING CEO Choi Ju-hui, Studio Dragon CEO Jang Kyung-ik, CJ’s Enterprise Innovation Workplace Chief Lee Dong-hyun, CGV Home Enterprise Division head Cho Jin-ho and Content material Distribution SVP Search engine optimization Jang-ho have been amongst these current on the occasion.
Cautious method
Whereas the media conglomerate’s executives emphasised that they have been all taking a cautious method of their respective companies, many highlighted they’ve already tried and examined revolutionary methods to succeed in wider audiences and improve income.
Moreover rising manufacturing prices, Search engine optimization mentioned that one other problem is the straight decline in advert income on linear TV channels. “As advert income falls, it’s more durable to decide to programming. This shortfall can’t be offset by abroad gross sales and fast decision appears unlikely,” Search engine optimization acknowledged.
On the theatrical aspect of the enterprise, Lee mentioned that the business appears again at 2019 as the height yr for theater attendance in Korea, with the present determine now hovering at 60% of that quantity.
He identified that field workplace takings for movies rating within the mid-tier have drastically declined. “It is a critical concern for the movie market, even for subsequent yr. What’s extra regarding is that there’s additionally no momentum to show issues round,” he added.
Cho additionally offered knowledge and traits that his workforce has noticed in CJ’s theatrical enterprise over the past 5 years. Firstly, he emphasised that cinema-going is now primarily based mostly on movie alternative, not seasonality. For instance, theater attendance used to drastically peak in August, November and December in 2018 and 2019, however because the pandemic, these peaks are much more muted.
Secondly, Cho mentioned that in a lot of CJ’s surveys performed amongst theater-goers, he usually receives suggestions concerning the movie’s size, mentioning that whereas function movie runtimes have elevated, audiences may very well need shorter movies — a pattern he attributes to the viewing habits created by the proliferation of OTT.
For OTT platform TVING, Choi identified that regardless of rating because the primary platform domestically, TVING just isn’t proof against the stagnating development gripping the OTT market. She mentioned that subscription development is about to extend by solely 5% yearly.
Stabilizing market and new income streams
Regardless of the pessimistic financial outlook, Studio Dragon CEO Jang mentioned that he observes the home market stabilizing.
Whereas the variety of titles produced hit a peak of 120 exhibits for OTT and broadcast providers in 2022 earlier than declining to 105 final yr, Jang predicted that the quantity will settle at round 100 exhibits yearly within the close to future, with a larger demand for shorter-form content material. He added that many native broadcasters and planning to revive their drama manufacturing companies within the coming yr.
The CJ executives agreed that theaters, OTT, and broadcast channels need to cooperate to maximise the IP lifecycle.
Utilizing the instance of Dongjae, the Good or the Bastard, which was a by-product of well-liked crime thriller Stranger, they shared how CJ used its totally different companies throughout linear channel, OTT, and theater concurrently to maximise the IP’s attain and income. The title was produced by Studio Dragon, launched and broadcasted by TVING and tvN, and was invited to BIFF for a premiere screening.
Choi mentioned that reside sports activities broadcasting is a prime precedence for TVING, having invested in gaining the rights to stream Korea’s top-flight baseball league, KBO. She highlighted that they’ve seen an enormous wave of subscribers becoming a member of TVING by the addition of KBO content material.
The subsidiaries additionally revealed a transparent imaginative and prescient for international enlargement. With round 20 international tasks presently in improvement, Studio Dragon is eager to supply sequence codecs for US and Japanese native markets. TVING is refining its international launch technique, specializing in areas the place Ok-content is making a major influence, such because the US, Southeast Asia, and Japan. CJ ENM sees potential in new markets like India and the Center East the place Korean content material has but to succeed in stark recognition or revenue.
Search engine optimization mentioned that he took a enterprise journey to India this yr, the place there’s a massive demand for CJ’s content material. Emphasizing the necessity to develop new markets for CJ’s content material, Search engine optimization added that the corporate is working with the Korean Artistic Content material Company (KOCCA) to pursue new avenues and partnerships in India.
Jang added that one other creative precedence for CJ ENM is to develop and develop its pool of writing skills. Declaring the success of writers from CJ’s “O’PEN Writing Program,” Jang cited that this system’s graduates have gone on to pen the screenplays of prime exhibits like Underneath the Queen’s Umbrella and Hometown Cha Cha Cha.
