10 January 2015
NEWS & VIEWS
‘ One source , multi-content ’ approach to gain more audience
We understand that CJ E & M has four main divisions covering broadcast , film , music and smart media . Do these divisions complement one another in terms of CJ E & M ’ s overall objectives of producing and distributing Korean content in the region ? Jungmoo Park : CJ E & M has four main divisions covering media content , film , music and performing arts with the goal of reaching KRW2.4 trillion ( US $ 2.19 billion ) of sales by 2018 . To meet this goal , it is essential for all the departments to work together . Besides the cooperation within the departments , it is also important to consolidate partnerships with local partners in , for example , China and Vietnam , to achieve our goal .
How do you see the current market in the region ? In which countries do you provide the largest number of media content ? Park : The market for entertainment and media business in the entire Asian region shows a high growth rate of 5 % -10 % and is expected to grow rapidly in the future . As it was the case for South Korea and Japan , if the GDP in China and South-east Asia countries gets bigger , so does the needs for entertainment , which will be a contributing factor for the growth rate to become a twodigit number .
CJ E & M designated China and South-east Asian countries as its target markets and is strategically localising some of its content with a goal of reaching KRW580 billion in sales in foreign countries by 2018 . Our plan is to expand our know-how for content planning , investment , production and distribution to the Asian market by
The popularity of Korean-made films , TV programmes and pop music has already reached global proportions , and content producers have been quick to seize this massive revenue stream by providing a consistently wide array of offerings for consumers of Korean content around the world .
One such media company is CJ E & M , which produces and distributes content for the broadcast , film , music and live entertainment sectors . Headquartered in Seoul , but with offices in key Asian cities and in the US , CJ E & M seeks
partnership with regional partners and localising content based on CJ E & M ’ s global network .
What are some of CJ E & M ’ s strategies in growing more markets in the region for the company ’ s content ? Park : CJ E & M ’ s global strategy centres on globalisation and digitalisation . By globalisation strategy , we mean that in addition to exporting Korean content overseas , we are now looking to localise and customise K-Wave content to meet the needs of the local markets , particularly in regions such as China and South-east Asia . To do this , we look for top-tier broadcasting / new media partners to help in the production / programming / sales of localised content .
The digitalisation strategy involves seeking alliances with toptier digital platform partners to distribute content through the PIP ( Platform-in-Platform ) business model . We are also producing digital-oriented content , and in the long term , we aim to develop our own OTT ( over-the-top ) platform .
Could you tell us more about your smart media division ? What segment of your market does this division address ? Park : The smart media division has been re-organised , which was conducted based on each division ’ s character and how it produces and distributes digital content from each part . Specifically , a ‘ digital studio ’, which was also reorganised and added to the broadcasting division , is playing a significant role of making the digital part of self-produced broadcast business more competitive .
This is through the development of digital content related to fashion , beauty and food , along with CJ E & M ’ s lifestyle channels such as OnStyle , Olive and XTM , which target millennial viewers between the ages of 18 and 39 who are digital-savvy .
Do you think that Internet-based content delivery is something that will become as prevalent as traditional TV broadcast ? Park : Lately , there is a growing number of viewers who use two or three different platforms such as TV , PC , tablet or mobile devices simultaneously , rather than sticking to just one platform to enjoy content . We think viewers will choose to promote the globalisation of Asian pop culture through a strategic “ one source , multi-content ” approach .
The company was formed in 2010 from a merger of leading content makers CJ Media and On Media ( broadcast ); CJ Entertainment ( motion picture ); Mnet Media ( music ); and CJ Internet ( game ). APB ’ s Millette Manalo-Burgos prompts Jungmoo Park , head of CJ E & M ’ s Global Business Planning & Development , to share more about how CJ E & M plans to further its reach .
❝ Part of our strategy to become a leader in the growing digital market includes securing digital content that is already targeted at specific areas such as beauty and travels with the content producers who are active on online platforms such as YouTube , by establishing an encouraging environment for both our company and the producers to grow together .❞
— Jungmoo Park , Head of Global Business Planning & Development , CJ E & M
which platform to use , depending on the content they are going to enjoy , rather than using one platform exclusively .
In terms of technology
CJ E & M designated China and South-east
Asian countries as its target markets and is strategically in the process of localising some of its content with a goal of reaching
KRW580 billion ( US $ 528 million ) in sales in foreign countries by 2018 . advancements in broadcast and production , what new technologies do you think would be of best use for your company ’ s goal of producing quality content and garnering as much viewers as possible for them ? Park : CJ E & M has a goal of reaching KRW260 billion of sales related to digital service by 2018 . Part of our strategy to become a leader in the fast-growing digital market includes securing digital content that is already targeted at specific areas such as beauty and travels with the content producers who are active on online platforms such as YouTube , by establishing an encouraging environment for both our company and the producers to grow together .
We would also further extend the platforms reach with expanded partnerships with providers of mobile instant messengers , Internet portals or global OTT .