Japan Facing Production System Cracks, Breakthrough Lies in K-Content [The Future of K-Content②]

Solidarity Among Certain Operators Shaken, Japan's Production Committee System Wavers
Seeking New Collaborations and Opportunities in Korea... TBS and CJ ENM Agree on Joint Productions

Korean dramas continue to be steadily loved in Japan. Online video services (OTT) actively acquire them to attract subscribers. A local OTT official said, "Last year, dramas ranging from 'Queen of Tears,' 'Seonjae Upgo Twieo,' and 'Jeongnyeon-i' to terrestrial daily dramas were all popular," adding, "Securing K-dramas is becoming increasingly important." However, it is not to the extent of threatening the Japanese broadcasting industry. While Japanese dramas have low global market presence, they exert considerable influence in the domestic market. Japan's population (125 million) is more than twice that of Korea, which also means the content industry has strong sustaining power.

Last year, the drama 'I Love You,' which was popularly aired on TBS, featured Korean actor Chae Jong-hyeop.

This is due to the influence of production committees where multiple companies jointly invest and share risks. Under the leadership of broadcasters, companies that can monetize dramas?such as publishers, advertising agencies, record companies, merchandising firms, and video game companies?participate to decide investment amounts and share equity. However, after about 40 years, cracks have recently appeared in this system. The naturally formed solidarity and cohesion among certain operators began to be shaken by the 'Johnny's scandal.' Competitive operators have started seeking new paths one after another. Production companies owning intellectual property (IP) aim to enter global platforms like Netflix, while broadcasters look for breakthroughs through new collaborations and planning. Hence, the country most frequently sought is Korea.

Japan's TBS agreed in May last year with CJ ENM to co-produce at least three terrestrial dramas and two films over three years. TBS is one of Japan's five major terrestrial broadcasters and operates multiple production companies such as TBS TV, TBS Sparkle, and THE SEVEN. Its film production capabilities have also been recognized through theatrical releases like 'TOKYO MER ~Running Emergency Room~' and 'From Lageri with Love.' Yayoi Nakatani, Executive Director of TBS, explained, "CJ ENM operates multiple film and drama production companies such as Studio Dragon, Bon Factory, and Moho Film, and since our business structures are similar, we saw many opportunities for cooperation in various areas."

CJ ENM drama 'Seunjae Upgo Twieo' that gained sensational popularity in Japan last year

The first project the two companies pursued was creator exchange. Last year, they visited each other's studios to share successful cases of IP video adaptations and content creation know-how. They also planned various genres of content together, including dramas, films, entertainment shows, and animation. TBS creators, who had been confined to a closed environment, actively embraced CJ ENM's production system. Jun Fukai, CEO of TBS Korea, said, "CJ ENM producers consider not only creation but also business from the planning stage," adding, "It was especially impressive that they discussed ways to develop projects into global ventures."

Currently, two jointly produced dramas are both airing on TBS TV. Tsuyoshi Katayama, Senior Manager at TBS, stated, "TBS is currently covering all production costs but is also considering ways to share the burden in the future." If CJ ENM becomes more actively involved in production than now, the ultimate goal will inevitably be the Asian market. Media industry critic Dr. Youngshin Cho defined in his book 'After Netflix' that "collaboration between Korean and Japanese production companies means producing content sold and broadcast on global OTT platforms, rather than exchanging individual elements like actors or directors as in the past." Kiyong Choi, CEO of CJ ENM Japan, also said, "Focusing on Japan's local content will reveal paths to expand globally."

The 2023 Netflix release of "One Piece" is regarded as the only successful attempt at live-action adaptation by Toei.

CJ ENM may first reap results in animation IP. In 2022, it signed a global content co-production agreement with Toei, Japan's largest animation company. Toei owns numerous super IPs such as 'Galaxy Express 999,' 'Dragon Ball,' 'One Piece,' 'Pretty Soldier Sailor Moon,' and 'Slam Dunk.' Although it had ventured into drama and film businesses by borrowing the Hollywood system, it faced criticism for failing to properly express the original atmosphere. In this context, collaboration with CJ ENM, a company from the same cultural sphere, is attracting attention. Dr. Cho predicted, "If the combination of the two companies shows meaningful results, a day will come when global OTT platforms eagerly express their intention to purchase Korea-Japan joint content."