CJ E&M's Strategic Goals
On a September 22 strategy conference call, management at CJ E&M outlined medium to long-term business goals for the Korean media & entertainment major:
- CJ E&M expects to double its revenue base from US$1.2 billion in 2013 to US$2.4 billion by 2018, with overseas business accounting for 24% of turnover by 2018 (see Slide 1: Global Sales Target).
- By 2018, more than 60% of sales will come from the company’s media division, compared with 63% in 2013 (see Slide 2: Sales Breakdown), while 24% will come from movies (versus 17% in 2013) with 15% from music & events (versus 20% in 2013).
- CJ E&M anticipates US$580 million in international revenue by 2018, versus US$112 million in 2013, driven by China, Japan and Southeast Asia (see Slide 3: Global Revenue Target). Digital sales are expected to touch US$260 million by 2018 (see Slide 4: Digital Sales), with 75% from outside Korea. Businesses at home, including movies and pay-TV channels, are pegged at a 5% CAGR between 2013-18.
- CJ E&M expects China to generate 60% of its overseas revenues by 2018, with 40% from Japan and Southeast Asia. The main strategy in China is to engage in joint local productions with Chinese satellite broadcasters, leveraging CJ E&M formats. The company also plans to work with local artists. Vietnam is the main target opportunity in Southeast Asia, and CJ plans to grow its media & movie businesses through JVs with local partners.
- The group plans to increasingly grow and invest in its emerging digital business. It plans to provide curated content for multi-platforms via a proprietary content management system. Potential partners include mobile instant messenger providers, internet portals, and over-the-top video operators.