CJ ENM, a South Korean media company, announced that it plans to enhance original content production and substantially boost over-the-top (OTT) streaming services. CJ ENM is also currently one of South Korea and Asia’s most influential entertainment companies. In addition to its considerable success in its home turf, CJ ENM aims to expand its existing operations, looking to attain a global status.
Under the global expansion plan, CJ ENM would allocate 5 trillion won ($4.4 billion) to broaden its original content library. To this end, CJ ENM would produce more than 100 original content pieces by 2023 for its OTT service, TVing. Over the next five years, the media company would evenly split the planned spending at 1 trillion won per year.
“We will move on to the world stage and compete with global platforms and media powerhouses,” said Kang Ho-Sung, CJ ENM’s CEO, at a press conference. Kang also said that the company’s multi-media content production would incorporate all genres and formats, including films, series, and animation.
During this year’s second half, CJ ENM would strategically partner with international companies through TVing. The collaborations would also launch TVing’s original content to markets in the US, Japan, and other Southeast Asian countries.
Moreover, CJ ENM’s global expansion plan would include its music platform and other K-pop-related business, including KCON, MAMA, and Mnet. CJ ENM would build South Korea’s largest media studio in Seoul, providing a facility for offline performances. Besides the entertainment facility, CJ ENM would set up a K-pop complex, CJ LiveCity.
Increasing Original Content Competition
So far, CJ ENM’s planned funding is the largest budget plan a domestic company would spend on original content creation. CJ ENM’s move also heightened the fast-growing competition between OTT streaming platforms in the country, including Netflix Korea.
Before 2021 ends, CJ ENM would spend 800 billion won ($722 million) in media content production. Its 2021 funding is also higher than Netflix’s plan, which involves a 550 billion won ($496 billion) Korean content investment.
Another local OTT platform, Wavve, injected 80 billion won ($72 million) into its content production operations for this year. In 2019, the country’s leading mobile service provider, SK Telecom Co., established Wavve in collaboration with various broadcasting companies.
Furthermore, the South Korean giant Kakao Corp. recently announced that it would enter the OTT sector. As part of this plan, Kakao Entertainment, Kakao’s media unit, obtained a 100% share in the streaming platform operator INISOFT. Kakao Entertainment would also diversify its current business model by joining the OTT sector and optimizing its vast original content portfolio.
