On October 4th, CJ ENM, the entertainment powerhouse under South Korea’s CJ Group, announced an ambitious strategy to invest 1 trillion won (around $750 million) each year in content production, positioning itself to take on Hollywood.
In an interview with Bloomberg, a senior executive from the country’s leading entertainment company outlined this plan, acknowledging the current challenges facing the local entertainment industry. Despite the phenomenal rise of the “K-drama” phenomenon, CJ highlighted concerns over increasing production expenses and dwindling advertising revenue among domestic players. In contrast, global streaming giant Netflix has claimed a dominant position in distributing K-dramas, including the worldwide sensation “Squid Game.”
CJ has made a bold commitment to outpace all other competitors in South Korea regarding content production budgets. The company played a crucial role in the success of “Parasite,” the Oscar-winning film from 2019, and its portfolio extends across cinemas, production, and local streaming services. Now, CJ is considering the significant investments needed to evolve into a truly international entity.
During a forum at the Busan International Film Festival, CJ ENM CEO Yoon Sang-hyun commented on the industry’s current landscape, stating, “The content media industry is facing a crisis, with more competitors than ever and rapid shifts in the ecosystem. However, I see opportunities within these challenges.” He further emphasized, “Together, we can find solutions and create a virtuous cycle that allows our content to reach audiences worldwide.”
To address the current downturn in the industry, CJ plans to expand its international footprint. For example, Studio Dragon, known for hit K-dramas like “The Glory” and “My Mom’s Friend’s Son,” is set to develop content specifically for U.S. and Japanese markets. Additionally, the streaming service Tving is gearing up to expand its operations into the U.S., Southeast Asia, and Japan, while CJ is also looking into potential opportunities in the Middle East and India.
