[Click eStock] "Ace Story to Leap Forward as an Integrated Content Production Company"

[Asia Economy Reporter Eunmo Koo] Ace Story has proven its excellent production capabilities and strong overseas sales power through 'Jirisan,' and it is analyzed that next year, with the performance stability guaranteed by 'Jirisan,' it will show both quantitative and qualitative growth through upside in Chinese sales and its leap to an integrated content production company.

Ace Story is evaluated to have demonstrated its overseas sales capabilities with 'Jirisan.' Ace Story's next tentpole, 'Jirisan,' secured pre-sales and confirmed domestic scheduling (tvN) and global broadcasting (iQIYI) by the end of next year. This is the first case where global broadcasting rights were sold to a global online video service (OTT) with a high recoup rate (over 70%), rather than Netflix.

Researcher Hwajeong Lee of NH Investment & Securities said in a report on the 8th, "Jirisan shows that Ace Story is responsible not only for simple production planning but also for overseas sales, proving that it possesses excellent production capabilities as well as strong in-house overseas sales capabilities," and added, "Synergy between these two capabilities can be confirmed in upcoming tentpoles such as 'Morning Glory' and 'The King of Silk Road."

First, it is analyzed that quantitative growth is possible next year. Researcher Lee said, "Since the sales and costs of Jirisan will be allocated according to the progress rate, related revenue will be stably recognized in the fourth quarter when filming started and throughout next year," and forecasted, "If simultaneous broadcasting in China is possible at the time of domestic scheduling at the end of next year, additional sales in the 10 billion KRW range can also be expected." This is because the sales price is expected to be relatively high as Jun Ji-hyun, a Hallyu star in China, was cast as the lead.

It is also evaluated that qualitative growth will be achieved by advancing into an integrated content production company. Ace Story announced that it will expand its production scope not only to its main business of dramas but also to short-form content such as entertainment. Researcher Lee said, "Although entertainment initially has low profitability, it is worth noting the possibility of securing trading opportunities with new businesses that have related needs, and since the production input time and cost are low, it places little burden on the main business," and added, "A leap to an integrated content production company that can satisfy various needs is expected."

This content was produced with the assistance of AI translation services.