K-Content Syndrome Connected Through K-OTT

CJ ENM Acquires US Endeavor Content for 921.6 Billion KRW
Global Studio for Film and Drama Planning, Production, and Distribution
Globalizing Through New Content Discovery and Existing IP Remakes
'Tving' Boosted, "Expecting Diverse Overseas Expansion"

Drama 'Sulkkun Doshi Yeoja-deul' Still Cut

Reed Hastings, CEO of Netflix, wore a green tracksuit at the Q3 earnings briefing. It was the outfit worn by participants in "Squid Game." The drama was watched by 142 million people for more than two minutes within 28 days of its release. This was the result of aggressive investment. Netflix poured 550 billion won into Korean content this year alone. By strengthening production capabilities, it secured various intellectual properties (IP) and solidified its international competitiveness.

With the advent of online video services (OTT), demand for content is increasing day by day. Leading production companies are actively traded. Amazon.com, which operates Amazon Prime, acquired Metro-Goldwyn-Mayer (MGM), the maker of the "007" series, for $6.5 billion (about 7.7285 trillion won). Blackstone, a private equity fund preparing for OTT, purchased Hello Sunshine and Moonbug Studios for $900 million (about 1.0701 trillion won) and $3 billion (about 3.5679 trillion won), respectively. The former is a media company founded by Reese Witherspoon, famous for producing female-centered content such as "Big Little Lies" and "The Morning Show." The latter is the producer of the kids' channel "Cocomelon," which has 122 million YouTube subscribers.

Drama 'Killing Eve' Poster

CJ ENM also jumped into the bidding war among major players. On the 19th, it acquired Endeavor Content for $775 million (about 921.6 billion won). This was a large-scale deal made just two weeks after CJ Group Chairman Lee Jae-hyun reflected on his hesitation in making bold decisions. CJ ENM's recent moves have been slow and sluggish. Although the film "Parasite" achieved unprecedented success, the spread of COVID-19 made it difficult to develop follow-up projects. Only six films were released in the past 20 months. Blockbusters like "Hero," "Decision to Leave," and "Silence" could not even be released. It reached a point where its position as the leading home entertainment provider was threatened by global OTT platforms.

This acquisition is a cornerstone to strengthen internal capabilities and expand external presence. Endeavor Content is a global studio established in 2017 by Endeavor Group Holdings, a sports and entertainment group. It plans, produces, and distributes films and dramas. Its representative works include dramas such as "The Dark Days," "Nine Perfect Strangers," and "Killing Eve," and films like "Book Club," "Just Mercy," and "In the Heights." It also participated in the production of "La La Land" and "Call Me by Your Name." It has expanded its influence by distributing content through major broadcasters such as HBO (USA), BBC (UK), and global OTT platforms like Netflix, Apple TV+, and Amazon Prime. It has also recruited many talented directors, including Taika Waititi of "Thor: Ragnarok," Alan Poul of "The Newsroom" and "Six Feet Under," and Per Saari of "Big Little Lies."

Drama 'Eodum-ui Nanal' Poster

CJ ENM approached this as a global forward base. The plan is to discover new content and spread K-content through remakes of existing IPs. Endeavor Content has distribution bases not only in North America but also in 19 countries across Europe and South America. Such a system is essential for globalization. "Parasite" smoothly settled into the North American market thanks to Neon’s distribution network. The success of dramas like "Sweet Home," "Crash Landing on You," and "Hometown Cha-Cha-Cha" was also supported by Netflix’s extensive supply network. A CJ ENM official said, "This acquisition has absorbed a powerful distribution pipeline," adding, "We expect to pioneer various overseas channels."

The production capabilities for supplied content are sufficiently equipped. For dramas, Studio Dragon, known for "Mr. Sunshine," "Memories of the Alhambra," "Hotel Del Luna," and "Crash Landing on You," and Bon Factory, known for "What's Wrong with Secretary Kim," "The Greatest Love," "Master’s Sun," and "You're Beautiful," are subsidiaries. CJ ENM also owns many film production companies such as Vlad Studio, JK Film, M Makers, and Moho Film. The effects of this acquisition are expected to appear first at Bon Factory. They already signed a strategic partnership for global content co-production in January. They are preparing content production simultaneously in North America and domestically. A company representative said, "It is not yet the stage to release works," but added, "Expectations are high internally."

[Image source=Yonhap News]

The content portfolio spanning East and West directly enhances the competitiveness of TVING. Endeavor Content has over 305 projects in planning and development stages. CJ ENM will secure all original IPs through this acquisition. TVING, which is preparing for global expansion, now has a powerful weapon. While the immediate focus is on entering Japan and Southeast Asia, North America, Europe, and South America are also viable targets. Opinions are not few that now is the right time as K-content such as "Squid Game," "Hellbound," and "Hometown Cha-Cha-Cha" are gaining worldwide popularity.

A system that directly distributes owned IPs is a key to improving profitability. Last year, CJ ENM signed a three-year content distribution rights contract with Netflix for 21 titles. Most of these works gained popularity, increasing the influence of both the content and the production company. Even if TVING’s global expansion is delayed, it can negotiate under favorable conditions in the future. The overseas market is no different. The success of "Parasite" has greatly increased brand awareness. Led by CJ Group Vice Chairman Lee Mi-kyung, CJ ENM is already collaborating with major global studios such as Skydance Media and Apple TV+. Endeavor Group Holdings, which discussed this acquisition, can also join as a partner anytime. With about 7,000 famous actors and sports stars including Dwayne Johnson and Mark Wahlberg, it can provide great support for a new leap forward.

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