Naver and CJ Join Hands, What About TVING... Content Industry Watches Closely

[Asia Economy Reporter Kim Heung-soon] As NAVER, the largest domestic portal company, and CJ, which has shown prominence in movies, music, and dramas, are pursuing a strategic partnership, the related industry is closely monitoring the potential impact on the domestic content market, including online video services (OTT).

On the 15th, an OTT industry insider said, "With domestic content providers putting their lives on the line to enter overseas markets, NAVER could help distribute CJ-affiliated video content in Japan and Southeast Asia, where it has established a foothold through its messenger service." He added, "If CJ adds its long-accumulated planning and production expertise to NAVER’s intellectual property (IP) such as webtoons, the quantity and quality of video content could become richer."

Conversely, there are also forecasts that the scope of the content partnership between the two companies may not be as broad as expected. NAVER is actively producing original content through partnerships with leading domestic entertainment companies such as YG, SM, and Big Hit, while CJ operates the OTT platform 'TVING,' which mainly features programs from CJ ENM and JTBC. Therefore, it is evaluated that only limited forms of collaboration considering each company's interests will be possible.

A content industry insider said, "TVING refuses to collaborate with domestic OTTs to increase subscribers and insists on its own platform, and it is already distributing some of its own content overseas through the financially strong Netflix platform." He predicted, "Unless NAVER procures content under better conditions and support than Netflix, CJ will not find enough appeal to focus on collaboration with NAVER."

According to related industries, the partnership between NAVER and CJ will be made in logistics and content fields. It is known that NAVER is considering investing in CJ Logistics under CJ Group, CJ ENM, and Studio Dragon in the form of stock exchange. The content industry expects more emphasis on the logistics partnership. Both companies refrained from detailed comments, stating, "We will carefully consider the pros and cons of the partnership and thoroughly review ways to maximize the collaboration effect."