CJ ENM-Naver Strengthen Alliance... Tving Receives 40 Billion Won Investment and Support for Overseas Expansion

Subsidiary TVING Allocates Third-Party Shares to Naver
Business Cooperation Aimed at Strengthening Content Competitiveness
Expanding TVING Original Content Arsenal
Record High Monthly Users Reach 3.34 Million

[Asia Economy Reporter Minyoung Cha] CJ ENM's online video service (OTT) specialized subsidiary Tving is strengthening its alliance with Naver. Naver is investing 40 billion KRW in Tving, signaling plans for original content investment and domestic and international business expansion cooperation. As the 2022 overseas expansion plan is expected to be concretized in the second half of this year, the partnership with Naver is anticipated to shine.

Tving Allocates Third-Party Shares to Naver

CJ ENM announced on the 30th that its subsidiary Tving will issue 261,817 common shares to Naver through a third-party allotment at 152,778 KRW per share. This is to raise 40 billion KRW in operating funds. The company stated the purpose is "business cooperation to strengthen Tving's platform and content competitiveness." The allocated shares will be restricted from transfer for the next five years.

CJ ENM commented on this cooperation, saying, "Following Naver's investment in JTBC Studio, it has made a stake investment in Tving, solidifying the business cooperation system," and "Both companies plan to further strengthen cooperation for Tving's growth."

Previously, in October last year, Naver and CJ ENM exchanged shares to establish a strategic partnership, and as part of this partnership, Naver had already announced investment plans for Tving. Subsequently, the first collaboration between Tving and Naver was the launch of a combined product of Naver Plus Membership and Tving in March.

This investment by Naver in Tving aims to accelerate investment in original content and secure Tving's competitive edge. The plan is to maximize synergy through Tving by combining CJ ENM's strengths in content planning and production with Naver's diverse original IPs such as webtoons and web novels. CJ ENM and Naver will also actively cooperate in Tving's overseas expansion by leveraging their overseas business capabilities.

Yang Ji-eul, CEO of Tving, stated, "Through close cooperation with Naver, we will produce the best well-made content that resonates not only domestically but also in the global market, strengthening the influence of Tving Originals," adding, "We plan to expand the content portfolio through aggressive investment and enhance Tving-specific services such as personalized content provision."

Tving Prepares to Leap as the 'Number One K-Content Platform'

Since its spin-off from CJ ENM in October last year to become an independent corporation, Tving has been securing original content and expanding its business. Especially after releasing its first original, 'High School Mystery Club,' in January, it has been producing original content across various genres including entertainment, movies, dramas, and sports. Recent releases such as PD Na Young-seok's 'New Journey to the West Spring Camp' and the spin-off of tvN's 'Amazing Saturday,' 'Idol Dictation Contest,' have received high praise and popularity. New works like the movie 'Shark: The Beginning' and the entertainment show 'Transit Love' are also attracting attention. Additionally, the live broadcast of the 'UEFA European Football Championship (Euro 2020)' has expanded the content scope into sports.

Tving plans to produce about 100 original works and secure 8 million paid subscribers by 2023, and in 2022, it aims to expand globally to become the 'No.1 K-Content Platform.' This year, it plans to release around 30 original contents.

At the 'Vision Stream' event on the 31st of last month, CJ ENM also announced plans for Tving to enter overseas markets next year, focusing on major countries such as the United States and Japan. Tving was established last October with the goal of being a global platform, not limited to Korea. This is the first time the year and countries for overseas expansion have been specified. Japan and Southeast Asia had been considered likely target countries. The appointment of Yang Ji-eul, who has experience at a US IT company, as co-CEO is known to be a strategic move for this purpose. Tving's cumulative paid subscribers have increased by 63% compared to the initial period, and new app installations have risen by 67%.

Meanwhile, focusing on original content production, Tving recently recorded its highest-ever monthly active users (MAU). According to Tving, based on Nielsen Korea Click data for May, Tving's MAU was 3.34 million. This is an increase of more than 1.1 million since its launch as an independent corporation last October. The previous highest figure was 3.27 million recorded in March.

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