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K-Drama Giant CJ to Spend $750 Million Yearly to Fight Hollywood
- It wants to grow a truly international content business
- South Korea’s entertainment industry may be in crisis mode
"Parasite" producers accepting the Oscars in 2020.
Photographer: Mark Ralston/AFP/Getty Images
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CJ ENM Co. plans to spend 1 trillion won ($750 million) annually on content, as South Korea’s largest entertainment company tries to better compete with Hollywood and pull its business out of a funk.
CJ executives issued that pledge while describing how Korea’s entertainment industry is in crisis mode — despite the explosive popularity of K-pop and K-drama. Local players like CJ are struggling with rising production costs as well as falling ad revenue from local platforms. At the same time, Netflix Inc. has taken the lead on distributing K-dramas such as Squid Game worldwide.