[K-Kcontents Future]③ CJ ENM and SLL, Strengthened Skills, Reach for the 'Content Throne' Extending to American Dramas

Acquisition of US Production Studio, Cooperation and Exchange Start This Year
Remake and Joint Production While Maintaining Existing System
Domestic Market Size Tenfold "Creating Strategic Synergy"

K-content is no longer just for the domestic market. It is created with overseas distribution in mind. This reflects the recognition of its skills and expertise. A substantial amount of intellectual property (IP) has also been accumulated. It is now qualified to challenge a bigger stage: the United States, the global hub of content. However, one cannot simply throw down the gauntlet recklessly. Local adaptation, tailored strategies, and know-how are all necessary. Each requires long-term, painstaking effort. CJ ENM and SLL have bypassed these complex procedures in one leap. They acquired leading local production studios Endeavor Content and wiip, respectively. Their ultimate goal is to establish a stable revenue model and secure a global audience base. This year, they will actively localize content through various collaborations and exchanges.

A scene from the Apple TV+ drama Severance, produced by Fifth Season. It intriguingly explores the separation of selves inside and outside the workplace, winning two Primetime Emmy Awards and four Hollywood Critics Association Awards.

Endeavor Content, which has changed its name to Fifth Season, primarily focuses on film and drama production, distribution, and broadcasting. Notable films produced include "The Lost Daughter" (2021), which was nominated for three Oscar categories, Michael Bay's "Ambulance" (2022), Destin Daniel Cretton's "Just Mercy" (2019), Bill Holderman's "Book Club" (2018), and Cooper Raiff's "Cha Cha Real Smooth" (2022). The drama lineup is even more impressive. "Severance" (2022) starring Adam Scott, "See" (2019?2022) starring Jason Momoa, and "Truth Be Told" (2019?2023) starring Octavia Spencer have been flagship titles on Apple TV+. "Wolf Like Me" (2022) aired on Peacock, "Life & Beth" (2022), "Nine Perfect Strangers" (2021?2022), and "McCartney 3, 2, 1" (2021) were on Hulu, and "Tokyo Vice" (2022) gained popularity on HBO Max. Fifth Season has also demonstrated exceptional prowess in distribution. They led global hits such as "Killing Eve" (2018?2022) starring Sandra Oh, "The Morning Show" (2019?) starring Jennifer Aniston and Reese Witherspoon, "Normal People" (2020), and "The Night Manager" (2016). Han Eung-su, head of corporate communications at CJ ENM, stated, "Last year, eight productions made by Fifth Season were nominated 27 times as finalists for the Primetime Emmy Awards," adding, "This was the fifth highest number after Disney, NBCUniversal, Warner, and Paramount."

wiip's competitiveness is also formidable. With a rich network and excellent production capabilities, it has produced numerous killer contents over the past two to three years. These include "Dickinson" (2019?2021) starring Hailee Steinfeld, "Dummy" (2020) starring Anna Kendrick, "Mare of Easttown" (2021) starring Kate Winslet, "Monalisa and the Blood Moon" (2021) starring Jeon Jong-seo, "The Summer I Turned Pretty" (2022) starring Lola Tung, and "Pistol" (2022) directed by Danny Boyle. These were introduced through Apple TV+, HBO Max, Amazon Prime Video, and BBC, capturing both popularity and artistic merit. At the center of this success is CEO Paul Lee, who successfully operated ABC Network, ABC Studios, and ABC Family. Based on strong relationships with writers and agencies, wiip entered a stable trajectory in just over four years. His recognition in the local content market is so significant that he is synonymous with wiip.

SLL maintains wiip's existing structure while concretizing IP remakes, co-productions, and distribution expansions between the two companies. New projects are also being planned and developed. Kim Chan-hyuk, head of communications at SLL, explained, "More than 110 projects, including Woody Harrelson's 'The White House Plumbers,' the second season of 'The Summer I Turned Pretty,' and 'Bodkin,' are being planned, developed, and produced," adding, "The airing schedule will be announced later through platforms."

A scene from the HBO drama 'Mare of Easttown' produced by Whip. The lead actress Kate Winslet won the Primetime Emmy Award and the Golden Globe Award for Best Actress in the United States.

Fifth Season's trajectory is similar. This year’s releases include the second seasons of "Severance," "Tokyo Vice," and "Wolf Like Me," as well as Natalie Portman's "Lady in the Lake" and Eric Nam's acting debut "Transplant," among others. CJ ENM is also engaging in various joint ventures. Kim Je-hyun, CEO of Studio Dragon, a CJ ENM subsidiary, explained, "Studio Dragon will produce Fifth Season IP or remake CJ ENM IP for the U.S. market. Both companies also jointly plan and develop original-based items." Graham Taylor, co-CEO of Fifth Season, said, "We believe that combining CJ ENM's influence in Asia with our competitiveness in the U.S. and Europe will create strategic synergy," adding, "We are currently jointly developing more than ten projects based on IP sharing." Chris Rice, co-CEO of Fifth Season, noted, "Content planning and development collaborations typically take 12 to 18 months," and added, "The collaboration is progressing in an encouraging way, so good results are expected."

CJ ENM aims to leverage Fifth Season to absorb new networks and increase sales. The former is not limited to North America, as Fifth Season also operates distribution bases in Europe and South America. The latter relies on a significantly different price scale. The U.S. broadcast and video market size was $176.8 billion (approximately 223 trillion KRW as of 2020), more than ten times larger than Korea's (approximately 22 trillion KRW). Therefore, besides collaboration with Fifth Season, various other projects are underway. For example, Studio Dragon's "The Big Door Prize," co-produced with Skydance Media, will be released on Apple TV+ on March 31. "The Designers," a collaboration with Universal Studio Group and Ink Factory, is being planned and developed with Soo Hugh, showrunner of "Pachinko," as adapter and executive producer. A remake of "Memorist," which aired domestically in 2020, is set to be broadcast on CBS, a local terrestrial channel. Won Seol-ran, head of strategic communications at Studio Dragon, said, "This is the first case of direct participation by a Korean company in planning and producing a U.S. terrestrial drama," adding, "Unlike format sales, revenue will be generated as the seasons continue." Studio Dragon is also planning and developing remakes of "Hotel Del Luna," "Bad Guys," "Second 20s," "Oh My Ghost," "Crash Landing on You," and "The Cursed" with Skydance Media, Blumhouse TV, and others.

A scene from the Apple TV+ drama "Dickinson" produced by Wip. It was praised for exploring the constraints of society, gender, and family of the time through the eyes of poet Emily Dickinson.

All processes are conducted cautiously and seriously. Joo Seong-ho, head of the U.S. Business Center at the Korea Creative Content Agency, said, "This is a stage of receiving local infrastructure, know-how, culture, and influence systems," adding, "If domestic systems are mixed prematurely, it could lead to mutual destruction, so they are not rushing." He further stated, "Each company is expected to operate independently and only create synergy when collaboration is necessary." On the surface, Fifth Season and wiip are likely to be put forward prominently, as they have already been recognized for significant growth and influence in the local market. Highlighting the acquisition could risk following Sony's footsteps, which experienced ups and downs after acquiring Columbia Pictures in 1989. Joo advised, "Conducting business quietly is more advantageous for increasing profits," and added, "Strictly adhering to localization strategies is essential for quick settlement."