"From New Drama to Business"... AStory's Expectations '↑'

[Asia Economy Reporter Yoo Hyun-seok] There are prospects that Ace Story will achieve structural growth. It is expected that the references secured through drama production so far will have a positive impact.

On the 30th, according to the financial investment industry, Lee Soo-kyung of KB Securities said about Ace Story, "It is expected to turn a profit in operating income in 2021."

He explained, "From the fourth quarter results last year, revenue recognition for 'Jirisan' is expected to begin in earnest," adding, "Following that, sales from anticipated works such as 'If You Cheat, You Die', 'Big Mouth', and 'W' will be recognized based on progress."

KB Securities emphasizes that expanding business areas beyond drama production should also be noted. He evaluated, "In addition to simple production costs and production support costs, they are realizing sales diversification by expanding business areas into various fields such as games and webtoons using drama content IP."

In particular, he explained that the expansion of new businesses related to media commerce is also an element to watch. He said, "They are preparing a new business related to media commerce," and explained, "It is a business model that goes one step beyond product placement (PPL) by utilizing video rights to participate from the product planning stage and generate profits."

He added, "This business will be applied starting with 'Jirisan', and synergy is expected with Ace Story's first variety program, which is scheduled to air on domestic OTT platforms in the second quarter with a sitcom and in the third quarter with a variety show."

Ace Story is a drama production company established in 2004. It produced 'Kingdom', which was first released as Netflix's Asia original series.

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