South Korean entertainment conglomerate CJ ENM revealed financial results for its third quarter of 2024, highlighting strong performance across its content platforms, especially in TVINGyour growing streaming service. The company reported total sales of 1.125 trillion KRW (about $805 million) and operating profit of 15.8 billion KRW (about $11.3 million) during this period. Despite challenges in certain areas, CJ ENM achieved notable growth thanks to its focus on strategic content and diversification into the entertainment sector.
The boost of TVING in the streaming platform market
CJ ENM has seen significant growth in the media platforms area, primarily driven by its TVING streaming service. In the third quarter of 2024, the platform managed to capture the attention of a wide audience, largely thanks to the distribution of popular content such as tvN’s series “Love Next Door” and “Jinny’s Kitchen 2.” This strategic success allowed TVING to exceed 7.8 million monthly active users (MAU), approaching global platforms such as Netflix and consolidating its position in the competitive streaming market.
The increase in TVING subscribers not only improved CJ ENM’s visibility but also increased its profitability, aligning with the company’s efforts to strengthen its position in the streaming market and differentiate itself through premium and locally relevant content. TVING’s growth strategy, focused on attractive and high-quality content, resulted in the company’s highest sales increase this quarter, representing one of the areas of greatest projection for the future of CJ ENM.
Challenges in the film and drama sector
Despite the success in streaming, CJ ENM’s film and drama sector faced difficulties during the third quarter, with a 22.9% decline in sales, reaching approximately 251.6 billion KRW. Furthermore, this division recorded an operating loss of around 6 billion KRW, reflecting the complexities of the current film market. Although high-budget productions such as “I, the Executioner” managed to attract 7.5 million viewers, they were not enough to compensate for the declines in other less successful productions.
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This decline underscores the challenges CJ ENM faces in the film and drama sector, where competition and changes in audience preferences require innovative and selective strategies. The film market, especially in the post-pandemic, demands productions that not only attract large audiences, but also generate sustainable profits, a task in which CJ ENM will continue to invest resources and creativity to reverse this trend in future quarters.
ZEROBASEONE’s success in the music industry
The music category proved to be another bright spot in CJ ENM’s performance, thanks to the success of the group ZEROBASEONE, which contributed significantly to the quarter’s revenue. With the release of his fourth mini album, “Cinema Paradise,” ZEROBASEONE managed to sell 1,112,000 copies in its first week, an impressive achievement that positioned CJ ENM as a leader in the music sector. This success translated into sales of 182.7 billion KRW and an operating profit of 2.4 billion KRW in the music division.
The popularity of ZEROBASEONE demonstrates the power of CJ ENM’s intellectual property and artists in the music market. In addition, it reinforces the company’s strategy of investing in talent and high-demand musical productions, thus expanding its fan base and strengthening its presence in the global music industry.
CJ ENM’s focus on maximizing profitability and strengthening competitiveness
A CJ ENM representative commented on the company’s strategy in the context of its financial results: “While TVING’s continued subscriber growth improves profitability, the global influence of premium content intellectual property and the success of key artists contributed to a surplus trend. In the fourth quarter, we plan to focus on strengthening the competitiveness of our platform and maximizing profitability by offering attractive content selections.”
CJ ENM remains focused on a strategy that prioritizes quality content and the expansion of its digital platforms, with the aim of consolidating itself as a leader in the global entertainment market. The company will seek to take advantage of the momentum of TVING, capitalize on the success of its musical artists, and adjust its strategies in the film sector to close the year with a favorable balance and a solid projection for the future.
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