[Click eStock] “SAMG Enter, Upgrading with Platform Business”

Independent research firm CTT Research analyzed on the 21st that SAMG Entertainment is upgrading to a platform business.

CTT Research stated, "SAMG Entertainment plans to launch the ‘Emotion Castle’ platform at the end of this month," adding, "This marks the start of a platform business that provides its own online mall where MD products can be purchased, as well as membership services."

They continued, "The in-house online mall will expand its categories by adding kids' fashion along with toys, simplifying the distribution structure, which will greatly contribute to improving operating profit."

It is expected that 29 million YouTube subscribers will flow into the integrated platform. CTT Research said, "The combined number of subscribers across approximately 20 YouTube channels currently operated by the company reaches 29 million. Notably, Mini Force TV has 6.89 million, Mini Pang TV 5.61 million, and Kids Pang TV 3.98 million subscribers," adding, "These channels are operated separately by IP and country, but with the launch of the Emotion Castle platform, the traffic of 29 million subscribers will converge in one place, increasing the platform's value."

They also forecast that overseas sales, including those from China, will become full-fledged. CTT Research explained, "From the IP planning stage, partnerships have been established with major overseas entertainment companies to expand global business," and predicted, "Starting this year, the revenue model will shift from the existing license-based royalty sales to direct sales, generating significant overseas revenue."

Furthermore, they analyzed, "Mini Force, which aired in China, has recorded explosive viewership each season and has become one of the top 3 most popular animations in China. The growth trend of MD sales within China is also sharply rising," adding, "At the end of February, the company and China's Dadi Group completed the establishment of a Guangzhou corporation with a 9:1 equity ratio, and sales began from March. Annual sales of approximately 20 billion KRW are expected from China alone."

Finally, they stated, "If royalties received from the existing license model were at the 3-5% level, the structural change to direct distribution is expected to significantly improve operating profit margin to around 15%," concluding, "Accordingly, sales of 140.4 billion KRW and operating profit of 21.7 billion KRW are projected for this year."