[Click eStock] "Confirming Tving's Growth Trend... Expecting CJ ENM Stock Price Increase"

[Asia Economy Reporter Ji Yeon-jin] Eugene Investment & Securities announced on the 1st that it maintains a buy rating and a target price of 220,000 KRW for CJ ENM, expecting the stock price to rise as this year's OTT service 'Tving' shows visible growth and the advertising market recovers.

Researcher Lee Hyun-ji of Eugene Investment & Securities evaluated, "The growth rate of Tving is rising faster than expected, making the early-year market concerns seem unfounded. It is positive that they have secured a strong business operator and possess a solid growth strategy in stages."

At the 'CJ ENM Vision Stream,' a forum to share future vision and growth strategies held the day before, CJ ENM explained four growth strategies: enhancing content production capabilities, securing mega music IPs, strengthening digital capabilities, and globalizing production capabilities. Including broadcasting content production costs and production costs for Tving and films, they announced a content investment of 800 billion KRW this year and an investment plan totaling 5 trillion KRW over the next five years.

The company recently signed a series planning contract with Apple TV Plus for 'The Big Door Prize.' This will proceed not just as a simple investment but as a co-production, with the company bearing part of the production costs. It is evaluated as a contract possible by securing a global reference. It is scheduled to be released simultaneously worldwide through Apple TV Plus in the second half of the year.

Since its launch in October last year, Tving has seen a 67% increase in new downloads, a 41% increase in unique visitors, and a 63% increase in cumulative paid subscribers. The main customer base remains the 20s and 30s age group, but paid subscriber growth rates of 46% for those in their 50s and 33% for those 60 and older indicate a diversification in customer age groups. The plan is to provide various content genres, including adult-oriented animation and sports genres such as Euro 2020, in addition to dramas and movies.

In particular, as of the first quarter of this year, the average viewership rating was 57.1%, meaning 6 out of 10 people watch Tving content. Tving aims to secure 8 million domestic paid subscribers by 2023.

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