"CJ ENM has announced its vision to grow into a global total entertainment company by investing KRW 5 trillion in content production over five years.
At a press conference held at CJ ENM Center in Sangam-dong, Mapo-gu, Seoul on the 31st, CJ ENM CEO Kang Ho-sung said, “We will grow into a total entertainment company that reflects customers’ tastes in real time through interactive communication with customers and meets the needs of various customers by diversifying its content production forms”.
He went on to say, “We will significantly increase our investment in content while establishing a well-made IP mass production system and infrastructure,” noting, “We will invest KRW 800 billion in content this year alone and a total of KRW 5 trillion in the sector over the next five years,” stressing the importance of the content investment.
CJ ENM, which has grown into the best content company in Korea, will compete with major players in the global content market through large-scale content investment.
At the event, CJ ENM presented strategies to (1) enhance content production capabilities, (2) secure mega IP for music, (3) strengthen digital capabilities, and (4) globalize production capabilities. Also present at the event were TVING’s co-CEOs Yang Ji-eul and Lee Myung-han, who presented the company’s growth strategy as the 'No.1 K content platform.'
■ To expand the company’s production area through transmedia content while pursuing multi-platform-based expansion of its distribution infrastructure
CJ ENM CEO Kang said, “We will continuously create franchise IPs with LTV (Lifetime Value). We will create a complete self-production ecosystem that creates transmedia content between dramas, movies, webtoons, and performances.”
The company’s aim is to take a step further from opening the era of a professional drama production studio with the launch of Studio Dragon in 2016 to build a multi-studio structure specialized in entertainment, film, digital, and animation, among others.
The company plans to supply content produced in a specialized studio structure to not only TV stations but also global OTT media services including Netflix. In the process, the CJ ENM expects to secure profitability while continuously strengthening its global planning and production capabilities, which in turn will provide motivation and vision for creators as well.
■ Expansion of mega IP investment for global music business
CJ ENM plans to continuously secure and nurture mega IPs for its global expansion in the music business sector.
CJ ENM's music business is already generating remarkable results in the global market. ENHYPEN which was created through <I-LAND>, is causing a sensation as it took the first place on the Billboard World Album Chart and reached #18 as soon as it entered the Billboard 200 chart. In Japan, 'JO1,' produced through an audition program, topped the Oricon charts, and the second season of the program is currently airing amidst great response. The company has also joined hands with HBO-Max to plan and develop an audition program customized for the selection of a South American K-pop idol group.
Based on its unrivaled ability to produce audition programs such as <Superstar K> and <I-LAND>, the company will continue to secure K-POP mega IPs through the production of global audition programs while seeking to build a participatory and experiential global content ecosystem through CJ ENM's unique IP portfolio by combining it with the fandom gathered through global projects such as <MAMA> and <KCON>.
■ TVING to focus more than half of its original content on franchise IPs
TVING, which is a D2C (Direct to Consumer) platform allowing content providers to interact directly with customers, is a key pillar of CJ ENM's strategy to strengthen its digital competency. TVING leads CJ ENM's digital innovation by directly providing content that can satisfy customers' tastes in the D2C distribution environment. Expanded to a global platform, TVING serves as a window to disseminate K-contents to the entire world.
To achieve its vision of the 'No.1 K content platform,' TVING plans to expand its business globally in 2022 and produce about 100 originals and secure 8 million paid subscribers by 2023.
Following CJ ENM CEO Kang Ho-sung’s presentation, Yang Ji-eul, co-CEO of TVING said, “Since its launch in October last year, TVING has achieved remarkable growth including a 63% increase in the cumulative number of paid subscribers. During the same period, the rate of new app installations increased by 67% and the number of monthly unique visitors (UVs) increased by 41%, an indication of explosive growth.”
Compared to its early days when subscribers in their 20s and 30s took the lion’s share, the rate of increase in paid subscribers for middle-aged and older adults is also increasing significantly - 28% in their 40s, 46% in their 50s, and 33% in their 60s as of April of this year. More than half (57.1%) of all paid subscribers watch at least one content a day, an indication that the groundwork is laid for growth as a nationwide service.
Co-CEO Lee Myung-han who recently joined TVING as the country’s top-notch expert in the content production industry said, “TVING’s ‘original’ strategy is to produce diverse contents to create a fanbase with diverse tastes,” adding, “In order to create a fandom with franchise IPs, we plan to focus more than 50% of our total investment in originals on developing franchise IPs.
While fostering franchise IPs such as <Reply>, <Playlist>, <New Journey to the West>, and <Great Escape>, CJ ENM plans to meet the tastes of diverse fans with more than 6,000 movies, colorful animations for not only kids but also adults such as < The Haunted house (Shinbi Apartment) >, documentaries with fresh perspectives, and premium sports broadcasts.