Top executives at Korea ‘s CJ ENM announced that they will retain their annual content spend at 1 trillion won ($750M), while acknowledging that new business models are necessary to combat the industry’s economic headwinds. “Despite the growing uncertainty in the film industry, we will continue to support creators and enable their imaginations to come to life and shine bright,” said Yoon Sang-hyun, CEO of CJ ENM, at an event held alongside the Busan International Film Festival (BIFF). TVING CEO Choi Ju-hui, Studio Dragon CEO Jang Kyung-ik, CJ’s Business Innovation Office Chief Lee Dong-hyun, CGV Domestic Business Division head Cho Jin-ho and Content Distribution SVP Seo Jang-ho were among those present at the event.
Cautious approach While the media conglomerate’s executives emphasized that they were all taking a cautious approach in their respective businesses, many highlighted they have already tried and tested innovative ways to reach wider audiences and increase profits. Besides rising production costs, Seo said that another challenge is the straight decline in ad revenue on linear tv channels. “As ad revenue falls, it is harder to commit to programming.
This shortfall cannot be offset by overseas sales and quick resolution seems unlikely,” Seo stated. On the theatrical side of the business, Lee said that the industry looks back at 2019 as the peak year for theater attendance in Korea, with the current figure now hovering at 60% of that volume. He pointed .
