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CJ ENM, South Korea’s largest media and entertainment conglomerate, recently announced a bold 30-year vision at the Busan International Film Festival, reaffirming its unwavering commitment to K-content despite significant challenges in the global entertainment landscape. With an investment plan of KRW1 trillion ($750 million) annually in content, CJ ENM aims to capitalize on its global expertise and push the boundaries of Korean content for both domestic and international markets.

For film financiers and production studios, CJ ENM’s strategy provides key insights into industry trends and future opportunities, as well as the critical adjustments needed in an evolving market.

CJ ENM’s CEO, Yoon Sang-hyun, made it clear that the company is committed to long-term content investment, even as the industry faces economic pressures. By maintaining a production budget of KRW1 trillion annually, CJ ENM is looking to not only preserve its leading position but also to enhance the global competitiveness of Korean content.

For financiers, this signals a significant opportunity: despite short-term disruptions, the demand for high-quality, globally appealing content continues to grow. Studios that align with these long-term visions, particularly those looking to co-produce or collaborate on international projects, stand to benefit from CJ ENM’s capital commitment and global reach.

While CJ ENM remains optimistic, it openly acknowledged several challenges currently affecting the industry, including:

• Weak box office performance: The theatrical market, especially in Korea, has not fully recovered from the pandemic. Global cinema attendance remains below 60% of its peak, creating uncertainty around mid-budget film investments.
• Escalating production costs: Production expenses have doubled since the pre-pandemic era, putting pressure on profitability. This trend underscores the need for careful financial planning and resource allocation for studios aiming to sustain or scale their operations.
• Changing content consumption patterns: Audiences are shifting toward short-form videos and streaming, forcing a reevaluation of traditional long-form content strategies.

The decline in advertising revenues for TV channels and the competitive streaming landscape are further squeezing margins. These issues highlight the need for studios to diversify revenue streams, with an increasing focus on OTT platforms and digital distribution.

CJ ENM’s approach to content diversification is key to overcoming these market headwinds. Executives highlighted the importance of leveraging cross-platform opportunities to maximize content reach and profitability. For instance, films that underperform in theaters are often able to find new life on OTT platforms. Additionally, CJ ENM has experimented with different distribution models, such as releasing edited versions of TV shows for different platforms.

For production studios, this presents opportunities to partner with distributors who can capitalize on such multi-functional content strategies. Creating content that can be adapted or repurposed across multiple formats (theatrical, streaming, TV) is increasingly valuable in today’s fragmented media ecosystem.

Tving, CJ ENM’s streaming platform, is a major focal point of the company’s future strategy. Competing with global giants like Netflix, Tving has managed to capture significant market share in Korea but now faces a modest 5% growth outlook. Tving is looking to innovate and expand its content offerings, including live streaming of sports, such as baseball, to attract new subscribers.

For production houses, this shift opens up a range of collaboration possibilities with streaming platforms like Tving. Studios developing original series, sports-related content, or niche genres may find a lucrative partner in platforms seeking to differentiate from mainstream competitors.

Studio Dragon, CJ ENM’s flagship TV production arm, has also scaled down its output from 120 shows in 2022 to 96 in 2023, reflecting a more cautious approach to content production. While the volume has decreased, the focus is now on high-impact content with global potential, a trend that production companies should take into account when pitching or developing new projects. High-quality, culturally resonant projects with international appeal are more likely to secure financing and distribution in the current environment.

CJ ENM’s film division, while cautious about mid-budget productions, is keen on producing films with global appeal. Jerry Ko, head of the group’s film division, emphasized the need for targeted investment, with a focus on projects that can resonate worldwide. This presents significant opportunities for international co-productions and collaborations, as CJ ENM looks to scale its influence beyond domestic borders.

Upcoming projects such as Park Chan-wook’s “No Other Choice” and the Yorgos Lanthimos-directed remake of “Save the Blue Planet” are examples of this global push. Studios looking to co-invest in prestige films or tap into the international market should note CJ ENM’s willingness to back high-profile, globally appealing productions.

1. CJ ENM’s annual investment of $750 million indicates continued strong demand for premium content, despite market challenges.
2. Multi-platform content exploitation is key—consider content that works across theaters, OTT, and TV to maximize revenue.
3. International collaborations and high-quality global projects will be prioritized as CJ ENM shifts its focus toward global audiences.
4. Production costs are rising, and mid-budget films are struggling—target high-impact, globally resonant content to ensure sustainability.