CJ ENM’s bold vision for the future of Korean content

A commitment to substantial investment

CJ ENM, Korea’s leading media and entertainment giant, has announced a significant annual investment of KRW1 billion ($750 million) in content. This declaration was made by CEO Yoon Sang-hyun during an event at the Busan International Film Festival. Yoon emphasized the company’s unwavering belief in the potential of K-content and its dedication to enhancing the film industry’s performance through strategic investments.

Navigating the challenges ahead

Despite the optimistic outlook, Yoon acknowledged several challenges facing the industry. These include the ongoing weakness of the theatrical box office in Korea and globally, shifts within the streaming sector, a growing preference for short-form video content, and potential disruptions from artificial intelligence.

The evolving landscape of content consumption

Yoon highlighted the importance of adapting to these changes, stating, “We are already making the biggest content investment of any company in Korea and we are committed to growing it further.” However, he did not provide a detailed breakdown of the investment across different sectors or specify the allocation between the group’s own content and TV shows produced by its subsidiary, Studio Dragon.

Strategic exploitation of content

CJ ENM’s approach focuses on the multi-functional exploitation of content across its various distribution channels. Cho Jin-ho, head of the domestic business division at CJ-CGV, noted, “We’ve seen that some films that disappointed in theaters can do extremely well on OTT platforms.” This strategy underscores the importance of leveraging different platforms to maximize content reach and profitability.

Rising production costs and declining revenues

Seo Jang-ho, head of content business, pointed out that production costs have doubled since the pre-COVID era. Additionally, all TV channels are experiencing declines in advertising revenue, making it more challenging to commission new shows. The shortfall in revenue is not being compensated by overseas sales, further complicating the financial landscape.

The gradual recovery of the film industry

Lee Dong-hyun, business innovation executive at CGV, expressed concerns about the slow recovery of the film industry. “In film, we are now only at 60% of peak business. Recovery is very gradual. There have been hit films, but the performance of mid-tier films has drastically declined. That gives us real concern for next year and the future,” he said.

Streaming platform Tving’s growth and challenges

Choi Ju-hui, head of Tving, the streaming platform led by CJ ENM, shared insights into the platform’s performance. Tving has caught up with Netflix in the Korean market, but the outlook for subscriber growth is modest at 5%. Choi emphasized the need to expand subscribers and revenues by aligning with new consumer needs, such as adding live baseball (KBO) to the platform.

Studio Dragon’s stabilization

Jang Kyung-ik, who recently took over at Studio Dragon, addressed concerns about the studio’s production output. “When I joined, I kept hearing the word ‘crisis.’ It is true that we have gone from producing 120 long-form shows in 2022 to 105 last year and 96 this year. But I think we are now stabilizing at around 100 per year,” he said.

Innovative content usage and cross-platform exploitation

The speakers provided several examples of innovative content usage and cross-platform exploitation. For instance, the TV show “Spice up our Love” was given differently rated versions on linear TV and R-rated Tving streaming. Another show, “A Bloody Lucky Day,” premiered some episodes in CGV theaters a couple of days before airing on TV.

A global focus for future projects

Jerry Ko, head of film at CJ ENM, reflected on the changing environment of the film business. “After ten years of continuous growth in the film business, we are now in a different environment. We are learning to focus and target our investments and aim to have our films go global,” he said.

Upcoming projects for 2025

CJ ENM has an exciting lineup of film and TV titles for 2025, including Park Chan-wook’s feature “No Other Choice,” Yorgos Lanthimos’s remake of the 2003 CJ film “Save the Blue Planet” titled “Bugonia,” and a series adaptation of the film “Fabricated City.”

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