Yoon Sang-hyun, CEO of CJ ENM, "Will Invest 1 Trillion Won Annually in Content Production" [BIFF]

Executives Gathered... Exploring Development of K-Content Industry
Film Distribution, tvN, Tving 'Coexistence, Not Competition'
"Growing Importance of IP and Storytelling"

Yoon Sang-hyun, CEO of CJ ENM [Photo by CJ ENM]

"We will invest 1 trillion KRW annually, the largest scale in the country, in content production."

Executives from CJ ENM, the largest entertainment company in Korea, and film directors gathered in Busan during the 29th Busan International Film Festival (BIFF) to express their determination to overcome the crisis through collaboration between platforms in the rapidly changing content market. On the morning of the 4th, Yoon Sang-hyun, CEO of CJ ENM, said at a theater in Haeundae-gu, Busan, "I know there are expectations for CJ to play a role in the Korean film and content market," adding, "We are struggling because the past success formula that produced films with over 10 million viewers no longer works."

Reducing Production Costs, Increasing Investment

The content industry environment is rapidly changing. After the pandemic, production costs for films and dramas have risen, leading to a sharp decline in the number of productions and market contraction. As Over-The-Top (OTT) services expand their influence, theaters are stagnating, and short-form content is gaining attention. CEO Yoon stated, "With production costs soaring, many content producers are struggling to make profits. We will overcome the crisis and lead the market by reducing production costs through the development of alternative technologies such as artificial intelligence (AI) and securing diverse creators to develop original IP (intellectual property)."

On this day, CJ ENM introduced its business strategies including ▲ securing excellent content creators to establish an advanced production system, ▲ creating synergy between linear and digital platforms, ▲ securing competitiveness through proactive distribution structures, ▲ optimizing OTT Tving's content portfolio and diversifying revenue models, and ▲ establishing a sustainable global business structure.

CEO Yoon promised, "This is a time when we are deeply considering and becoming more cautious in the film business. We will invest 1 trillion KRW, the largest scale in the country, in content. We plan to continuously increase the scale of investment." He added, "CJ, which dreams of becoming a global power IP house, believes in the power of 'storytelling' that moves the world."

Expanding Genres and Global Collaboration

Market changes are clearly reflected in theaters. Jo Jin-ho, Head of Domestic Business at CGV, analyzed, "The annual number of theatergoers is decreasing and viewing patterns are changing. This year, nine Korean films that surpassed the break-even point (BEP) had the characteristic of shorter running times." He added, "Animation is establishing itself as a main genre, and the number of arthouse members has steadily increased to over 410,000." He viewed that "various genre films are contributing to market revitalization."

Lee Dong-hyun, Head of Management Innovation at CGV, stated, "The film market is at about 60-70% compared to 2019, and we will diversify content supply with animation, sports, and more." Seo Jang-ho, Head of Content Distribution Business at CJ ENM, said, "We will actively introduce AI technology in production and distribution and expand collaboration with global platforms."

CGV expressed its ambition to globally expand special theaters such as 4DX, ScreenX, and Ultra 4DX, which operate on 1,500 screens in over 70 countries worldwide. Oh Yoon-dong, General Producer of CGV 4D PLEX, said, "As global market demand increases, the number of content productions for special theaters has also increased. From 4 films in 2020 to 13 films this year. Including unreleased works, 18 films have been produced this year alone. We have produced and distributed over 30 contents so far." The documentary film 'RM: Right People, Long Places,' invited to the 29th Busan Film Festival this year, will also be distributed globally by CGV. Oh said, "From December, we have secured at least 3,000 screens."

Resetting Film Production Investment Criteria... Aiming for Platform Synergy

CJ ENM announced its 2025 lineup including director Park Chan-wook's film "It Can't Be Helped," the OTT remake of the film "Fabricated City" titled "Fragmented City," Tving's "A Week Before I Die" involving director No Jeok, and the remake of the film "Save the Green Planet" titled "Bugonia."

The CJ ENM Film Business Division emphasized that it has newly set lineup criteria in response to market changes. Ko Kyung-beom, Head of the Film Business Division, said, "The market has reached an overheated stage," adding, "We are resetting investment and distribution film themes and genres." He also said, "We are focusing on projects that can be utilized in multiple ways and works that can expand into the global market."

They also plan to focus on creating synergy between platforms through various collaborations such as tvN and Tving. OTT platforms have the advantage of abundant real-time data collection. Min Seon-hong, CCO of Tving, said, "We will continue new attempts aiming to expand films and the industry."