NH Investment & Securities analyzed on the 20th that Nasmedia has high potential for revenue growth through the full-scale launch of online video service (OTT) advertising agency and the utilization of artificial intelligence (AI) technology. The investment opinion was maintained as 'Buy,' and the target stock price was raised to 32,000 KRW.
Nasmedia, established in 2000, is the top digital media rep company affiliated with KT in terms of domestic handling volume. Hwa-Jeong Lee, a researcher at NH Investment & Securities, stated, "Despite the slower-than-expected recovery of the domestic advertising market, Nasmedia is expected to show a steeper growth rate compared to the market." She added, "As major OTTs such as Netflix and TVING have begun to actively utilize advertising subscription plans, a portion of the broadcasting advertising market's share may shift to digital advertising." She also noted, "There is high anticipation for the mid- to long-term growth brought by AI-based advertising services to be unveiled at the Mobile World Congress (MWC)."
She explained, "Although Netflix introduced its advertising subscription plan at the end of 2022, it was neglected by domestic users because it offered no real price merit compared to account sharing." She added, "As a result, the advantage of being the exclusive advertising agency has not been highlighted until now."
She said, "At the beginning of this year, Netflix also began to crack down on account sharing in Korea." Considering the case in the U.S. market where the number of advertising subscription users sharply increased after the crackdown on account sharing, a similar trend is expected domestically." She continued, "In other words, the volume of advertising agency business for Netflix is highly likely to increase rapidly, and related benefits are expected to be reflected in performance in the second half of this year."
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