Endemic and Other Adverse Factors Overlap... CJ OnStyle Q2 Operating Profit Down 4.2% YoY (Comprehensive)

Impact of Consumer Sentiment Contraction and TV Broadcast Fee Increase

CJ OnStyle faced a 'disappointing report card' as negative factors such as a decline in TV viewership due to the endemic and issues with broadcasting fees overlapped.

CJ OnStyle announced on the 10th that its operating profit for the second quarter decreased by 4.2% year-on-year to 18.7 billion KRW. During the same period, sales decreased by 1.7% to 345.7 billion KRW.

CJ OnStyle CI
Photo by CJ OnStyle

Since April, CJ OnStyle has expanded and organized a portfolio focused on high-profit seasonal products such as fashion, travel, and rentals, and strengthened mobile live commerce with programs like 'Edge Show' and 'Butina Saenghwal.' However, fundamentally, the number of TV viewers is rapidly declining due to aging demographics, and this trend has intensified recently with the endemic, making it difficult to reverse the situation. Additionally, intensified competition with the e-commerce market and increased TV broadcasting fees have compounded the negative factors, deepening the downward trend.

CJ OnStyle plans to enhance its 'one platform' strategy, which organically combines CJ OnStyle channels such as TV and e-commerce, to increase the brand's lock-in effect. In the second half of the year, the company will focus on improving profitability through ▲ recovery of TV advertising and subscriber growth by strengthening channel and TVING synergy ▲ sustained growth by enhancing content competitiveness and diversifying distribution platforms ▲ and strengthening global business capabilities through the expansion of human intellectual property (IP).

A CJ OnStyle official stated, "The most significant impact came from the deteriorating business environment, including weakened consumer sentiment and increased TV broadcasting fees." He added, "Nevertheless, in the second half, we will focus on profitability improvement by prioritizing the one platform strategy."

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