Prime 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 trade’s financial headwinds.
“Regardless of the rising uncertainty within the movie trade, we’ll proceed to assist creators and allow their imaginations to come back to life and shine vivid,” stated Yoon Sang-hyun, CEO of CJ ENM, at an occasion held alongside the Busan Worldwide Movie Competition (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 marketing Jang-ho have been amongst these current on the occasion.
Cautious strategy
Whereas the media conglomerate’s executives emphasised that they have been all taking a cautious strategy of their respective companies, many highlighted they’ve already tried and examined revolutionary methods to achieve wider audiences and improve income.
Apart from rising manufacturing prices, Search engine marketing stated 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 marketing said.
On the theatrical aspect of the enterprise, Lee stated that the trade appears to be like again at 2019 as the height 12 months 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. “This can be a critical concern for the movie market, even for subsequent 12 months. What’s extra regarding is that there’s additionally no momentum to show issues round,” he added.
Cho additionally supplied knowledge and traits that his crew has noticed in CJ’s theatrical enterprise during the last 5 years. Firstly, he emphasised that cinema-going is now primarily primarily based on movie selection, not seasonality. For instance, theater attendance used to drastically peak in August, November and December in 2018 and 2019, however for the reason that pandemic, these peaks are much more muted.
Secondly, Cho stated that in a lot of CJ’s surveys performed amongst theater-goers, he typically receives suggestions in regards to the movie’s size, mentioning that whereas characteristic movie runtimes have elevated, audiences may very well want 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 resistant to the stagnating development gripping the OTT market. She stated that subscription development is ready to extend by solely 5% yearly.
Stabilizing market and new income streams
Regardless of the pessimistic financial outlook, Studio Dragon CEO Jang stated that he observes the home market stabilizing.
Whereas the variety of titles produced hit a peak of 120 exhibits for OTT and broadcast companies in 2022 earlier than declining to 105 final 12 months, 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 12 months.
The CJ executives agreed that theaters, OTT, and broadcast channels must cooperate to maximise the IP lifecycle.
Utilizing the instance of Dongjae, the Good or the Bastard, which was a by-product of fashionable crime thriller Stranger, they shared how CJ used its completely 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 stated that stay sports activities broadcasting is a high 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 impression, 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 achieve stark recognition or revenue.
Search engine marketing stated that he took a enterprise journey to India this 12 months, 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 marketing 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 inventive precedence for CJ ENM is to broaden and develop its pool of writing skills. Mentioning 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 high exhibits like Below the Queen’s Umbrella and Hometown Cha Cha Cha.
