Resumption of Premium Series Production
Profitability Up with Distribution Business Expansion
Partnering with Toho... Towards the Global Stage
CJ ENM's U.S. subsidiary, 'FIFTH SEASON,' has announced plans to create synergy through Korea-U.S.-Japan content collaboration.
With Japanese entertainment company 'Toho,' which became FIFTH SEASON's second-largest shareholder last year, the goal is to leap forward as a global studio encompassing both Eastern and Western cultures.
This year, the total production budget for the 12 content projects planned, produced, and distributed by FIFTH SEASON is expected to reach $1 billion (approximately 1.35 trillion KRW).
◆ Last year's Hollywood strike... High expectations for this year = Last year, the U.S. content market faced difficulties due to the Hollywood actors and writers strike. FIFTH SEASON was also in a temporary shutdown for five months and underwent two rounds of workforce reductions.
Chris Rice and Graham Tyler, co-CEOs of FIFTH SEASON, recently revealed their crisis recovery strategies and business blueprint in an interview with the leading Hollywood media outlet Deadline.
They reported that premium series production resumed from December last year, after the Hollywood strike ended. Production restarted on Apple TV Plus's popular series 'Severance' Season 2, Nicole Kidman-starring 'Nine Perfect Strangers,' and the Australian drama 'The Last Anniversary,' which Kidman is directly producing. Natalie Portman’s 'Lady in the Lake' has entered post-production.
'Tokyo Vice' Season 2, which had completed production earlier, was released last month on HBO's global OTT platform Max.
Co-CEO Rice stated, "The production budget for the 12 series planned for pre-production, production, and distribution this year will total $1 billion." Typically, producing films or dramas requires investments from multiple investors, and this amount is expected to reach $1 billion in total.
◆ Expansion of distribution business... Monetizing overseas rights = FIFTH SEASON is also expanding its presence in the content distribution sector. Leveraging its global network, it is successfully securing global distribution contracts for various content.
Recently, major OTT platforms like Netflix have been sharing overseas rights with partners who have strengths in content distribution. This structure allows platforms to reduce content investment costs while distribution specialists maximize profitability through overseas rights.
Co-CEO Rice expressed confidence, saying, "Companies like FIFTH SEASON, which have strengths in both production investment and distribution, can create shared value from a single work through collaboration with platforms."
He added, "Rather than individual companies handling this directly, companies like ours with global networks can develop overseas rights businesses more profitably, creating a win-win situation for all."
For example, 'Nine Perfect Strangers' and 'Tokyo Vice' were released in the North American market through U.S. OTT platforms Hulu and Max, respectively, but FIFTH SEASON subsequently conducted additional global distribution.
Content such as Jessica Biel's 'Made Up Stories: The Good Daughter,' which global OTT Peacock decided to serialize, Lena Dunham-starring 'Covers' released on Netflix, and Amy Adams' 'The Holdout,' currently in development at HBO, are also under distribution contracts with FIFTH SEASON.
◆ Aiming for a quantum leap with Toho's investment = FIFTH SEASON is aiming for another quantum leap by welcoming Toho, a major Japanese content company, as a shareholder. Founded in Tokyo in 1932, Toho is engaged in the development, production, and distribution of films, animation, theater, and TV content.
Last year, Toho invested $225 million in FIFTH SEASON, acquiring a 25% stake.
CEO Rice said, "Using content formats from CJ ENM and Toho, we have begun planning and development in the U.S., Canada, the U.K., and Australia," adding, "We are also developing IPs that can be launched simultaneously in Korea and the U.S."
FIFTH SEASON has set a goal to become a global dream team studio encompassing Eastern and Western cultures by building a joint front with leading entertainment companies from Korea and Japan. CJ ENM and FIFTH SEASON plan to develop Toho content for global markets and participate in content production within Japan.
Toho has also announced plans to actively continue creator exchanges among the three companies. The three parties are expected to establish a production system that enhances collaboration synergy among Eastern and Western creators, enabling the production of diverse global-oriented content.
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