[Click eStock] 'Super Eul' NEW, Value Rise with Global OTT Supply Expansion

[Asia Economy Reporter Park So-yeon] Leading Investment & Securities analyzed that NEW, a major domestic film investment and distribution company, has secured a stable source of income through the expansion of content supply to global OTT platforms, and its market value is increasing.

On the 17th, Yuseongman, a researcher at Leading Investment & Securities, stated in a report, "NEW secured a stable revenue source by signing a long-term content supply partnership with Disney Plus for the next five years through its subsidiary Studio&NEW."

Researcher Yuseongman forecasted, "It is estimated that Disney Plus pays a margin of about 35-40% to secure Korean drama content, and an improvement in NEW's performance is also expected."

He mentioned, "With global OTT platforms such as Disney Plus, HBO Max, Apple TV, and domestic OTT platforms like Watcha, TVING, Coupang Play, and Wavve intensifying efforts to secure content, an increase in the sales and number of drama contents produced by NEW, which has the capability to produce dramas like movies, is expected."

He added, "In the next 1 to 2 years, Studio&NEW is in a situation with high growth potential, which will act as an additional momentum."

NEW succeeded in raising funds of 20 billion KRW this year through the issuance of convertible bonds to produce a lineup of 11 films and follow-up drama lineups including 'Moving.' It signed an equity investment contract with Hollywood content investment company LPI for three years.

Researcher Yuseongman said, "NEW will internalize VFX technology, which is expected to be increasingly applied to films and dramas in the future, through its subsidiary 'Engine Visualwave,' and by acquiring the billiards broadcasting channel 'Billiards TV,' it will expand billiards-related business and diversify its revenue sources."