[Click eStock] "NEW Officially Announces Disney Plus Partnership"

[Asia Economy Reporter Park So-yeon] Kiwoom Securities on the 30th rated a "Buy" recommendation and set a target price of 240,000 KRW for the content production company NEW. This is based on the analysis that intensified competition among global OTT giants such as Netflix and Disney Plus will positively impact the profitability improvement of domestic content producers.

NEW officially formalized a partnership with Disney regarding a joint guarantee related to the completion and delivery of two dramas produced by its subsidiary Studio&New Co., Ltd. the day before.

Researcher Lee Nam-soo of Kiwoom Securities said, "Considering the scale of the disclosure, it is estimated that the tentpole drama 'Moving,' with an estimated production cost of 50 billion KRW, and 'You and My Police Class,' expected to star Kang Daniel, are likely candidates." Researcher Lee Nam-soo analyzed, "With the long-term content partnership with Disney, original series and content are expected to be continuously released over the next five years."

Based on Netflix's successful entry into the domestic market, Disney Plus, Apple TV Plus, HBO Max, and others are reportedly exploring various strategies to enter the Asian market this year. Netflix is expanding the launch of original and simulcast dramas and movies based on a content investment reaching 550 billion KRW this year.

Domestic OTT platforms such as Wavve, TVING, Coupang Play, and Watcha are also competing for OTT leadership by increasing their content investment.

NEW is expected to expand its portfolio centered on domestic dramas this year to compensate for the sluggish theatrical movie releases. Kiwoom Securities forecasted that NEW could achieve sales of 296 billion KRW and an operating profit of 30.1 billion KRW next year, influenced by dramas such as "Moving."

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