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Cj Entertainments International Strategy Advertising Essay

It is at 1990 that CJ first totally entered the overseas market because they build lysine and fabricated seasoning plants in Indonesia. In the 1990s, CJ transformed itself from a food company to a life and culture business. It diversified itself from being a past Samsung Group spin-off by widening its pharmaceutical, bio and chemistry businesses. CJ became individually monitored in 1993 and soon got into the food service and aesthetic industries.

In 1996, CJ formally launched the Cheil Jedang Group. Since then, CJ has widened its businesses into diverse fields such as mass media, entertainment, money and information & communication businesses. CJ currently practices an extremely centralized business structure and organizes itself into 4 main business communities: food and food service, bio and pharma, entertainment and marketing, and home shopping and logistics. CJ has globalized by expanded its business internationally into China, Japan, South East Asia and Australia, US and European countries.

CJ Entertainment's definitive goal is to invest, produce and disperse feature motion pictures. CJ Entertainment's network expands much throughout the industry and is extremely diversified using the protection under the law to a vast number of films, running systems of multiplex cinemas, and distributing a broad selection of training video and DVD game titles.

The company began as the Entertainment Section within Cheil Jedang in August 1995 but renamed itself CJ Entertainment in Sept 1996 in conjunction with the syndication of its first film "Secret and Lies". In April of 1998 the company exposed their first multiplex theater, CGV KangByun 11.


CJ Entertainment organizes its framework into 4 divisions: Management Support Department, Film Business Department, International Business Division, and Performing Arts Department.

Within these formal department and business subcategories, the most important business units are the following:


CJ Entertainment has aligned with Domestic key production houses such as Sidus, Film Bom, Myung Film. CJ Entertainment invests in motion pictures and helps film directors to secure long-term market expansion. In addition, through its 130 million dollars investment as a founding spouse in Desire Works SKG in February 1995, CJ Entertainment has aided in creation of countless DreamWorks movies and retains exclusive distribution rights DreamWorks movies in Korea.


CJ Entertainment tries to reduce risk and improve earnings though its opportunities. As a major presence in Korea's film industry, it gets deeply involved in managing whole development procedures and through financing Korean films.


CJ Entertainment has the largest film circulation channel in Korea which is the key strength of this company. It distributes home as well as international movies within Korea. Its film distribution network includes more than 400 theaters across the country.

The Multiplex:

In 1996, CJ Entertainment proven its multiplex, CJ CGV by way of a jv with Australian established global multiplex theater chain, Town Roadshow, and Hong Kong's Golden Harvest. It really is currently functioning 17 multiplex sites domestically. These multiplexes have created a new movie-going culture and experience Korean consumers leading to many other theatre companies to follow suit. The establishment of CGV theaters has helped increase market demand for motion pictures throughout Korea which has directly benefited CJ Entertainment's Film Creation Division.

Other Businesses:

Other than within the film industry, CJ Entertainment is extending into new businesses like musical shows, online games, computer animation and skill management. Furthermore, CJ Entertainment also provides DVDs and is also also involved in character licensing, Tv set production, online move portals and CABLE TELEVISION development as well as music production.


CJ Entertainment's International Strategy:

CJ Entertainment has been successfully internationalizing its business and is well known throughout the entertainment world as a Korean entertainment powerhouse. CJ Entertainment is globalizing its business in three ways: by distributing international motion pictures in Korea, by distributing Korean movies overseas, and by forming joint projects with and investing in foreign production companies to create and distribute foreign films in overseas markets.

Foreign Film Circulation in Korea:

CJ Entertainment's first strategy for globalization is distributing foreign films in Korea by collaborating with abroad firms. They are also importing musicals from in foreign countries into Korea.

DreamWorks, Paramount and CJ Entertainment:

CJ Entertainment has made strategic alliances with overseas film creation companies and studios so that they have rights to disperse their foreign movies in Korea. Currently they may have exclusive rights to all or any DreamWorks and Paramount movies, that are both large and powerful studios in Hollywood.

DreamWorks Pictures, also known as DreamWorks, LLC, DreamWorks SKG, DreamWorks Studios or DW Studios, LLC, can be an American film studio room which builds up, produces, and distributes videos, video gaming and television coding. DreamWorks commenced in 1994 as an ambitious make an effort by advertising moguls Steven Spielberg, Jeffrey Katzenberg and David Geffen to create a new Hollywood studio room. An alliance was made between CJ Entertainment and DreamWorks when Cheiljedang spent $130 million in the studio in 1995 as a founding spouse. (Immediately after this investment, Cheiljedang founded its own entertainment section, CJ Entertainment. ) That is, CJ Entertainment became an buyer acquiring stocks of DreamWorks in the early levels of its creation which distinguished it from the usual alliance between a film company and distributor. Through this alliance DreamWorks could set up a bottom part of Asian distribution and CJ Entertainment could build up the foundation of syndication network in america.

In 1997, CJ Entertainment distributed the first DreamWorks film, "Peacemaker", sketching 70 million moviegoers in Korea. Since "Peacemaker", CJ Entertainment has been distributing a number of films effectively, such as "Deep Impact", "The Prince of Egypt", "Gladiator", "Shrek", "Beautiful Mind", "Catch me if you can", and "Transformers".

"Transformers", which is distributed by CJ Entertainment in 2007, is positioned at number one among foreign films which have revealed in Korea relating to reports by Korean Film Council, which includes enticed about 7. 44 million viewers. Furthermore, animated movie "Kung Fu Panda" of DreamWorks is the most observed cartoon film in Korea and drew around 4. 67 million spectators.

On December 2005, CJ Entertainment surely got to sign a contract with Paramount as Paramount purchased DreamWorks SKG in a offer worthwhile $ 1. 6 billion. Regarding to this deal between Paramount and DreamWorks SKG, CJ Entertainment has sent out videos from both companies into Korea. In addition, it includes the exclusive syndication protection under the law which UIP Korea (United International Pictures) experienced owned before. Market show of UIP Korea in 2006 was 7. 6% in Seoul ranked at 5th and out of total followers. Also it acquired occupied 19. 2% of market show on foreign motion pictures ranked at 2nd. After UIP Korea lost its distribution protection under the law with Paramount, however, market show of UIP Korea in Seoul lowered to 3. 5% in 2007. At the same time, market show of CJ Entertainment in Seoul gone up and it needed the first place in 2007 accounting for 29. 7%. Market share of CJ Entertainment on international movies in 2006 has been 6. 0% placed at fifth place. Since the start of distributing videos for Paramount, its market share on foreign videos risen to 24. 2% positioned at number one. As the reports says, getting exclusive circulation rights from Paramount caused big positive influence on CJ Entertainment's market electricity.

CJ Entertainment

UIP Korea

Total films

Foreign films

Total films


Market share

23. 2%

6. 0%

7. 6%






Market share

29. 7%

24. 2%

3. 5%





Distributing musicals in Korea:

Beginning with musical, "Pet cats" in 2003, CJ Entertainment in addition has distributed musical shows into Korea, such as "The Phantom of the Opera", "Jekyll and Hyde".

Distributing Korean Movies Abroad:

CJ Entertainment expands Korean film circulation overseas using 4 strategies: reselling copyrights, direct distribution, airing Korean films and television programs on overseas television programs, and extending CGV theaters in foreign countries.

Selling Copyrights:

Though offering copyrights might not gain as much profit as straight distributing films in another country, due to large risk associated with direct distributing foreign films CJ adoption the strategy of advertising copyrights to get profit while minimizing risk. Their copyright-selling strategy can be divided into 2 parts; selling original film copyrights and selling copyrights with authorization to remake the film.

CJ strategy in retailing original copyrights of Korean motion pictures by taking good thing about the Korean ethnical boom. (Korean influx culture or Hallyu) This ethnical wave is particularly active in Parts of asia so CJ has been most successful in offering their original variations of copyrights in other Asian countries.

On the other hand, in the case of selling copyrights designed for remake, CJ Entertainment will target the Hollywood film market. Hollywood is the biggest film market on the planet but as ideas have needs to run dry, Hollywood studios and production companies have started to research the Asian film market to come up with fresh and amazing film ideas. Numerous Korean copyrights were sold and achieved success in the Hollywood film market including "Il Mare", which was remade in Hollywood as "The Lake House. " Korean videos "Old Boy" and "My Sassy Female" now have remake copyrights presently organised by Hollywood studios.

Direct Syndication:

Though a primary distribution strategy has an increased risk than reselling copyrights and has minimum amount promises, it is impossible for CJ entertainment to avoid this kind of risk in expanding business in the international market. It'll be costly to set up the circulation network for short term, however in the long-term perspective, this strategy offers more of a warranty that you will see channels available to allow their videos to be distributed regularly. CJ entertainment chose this plan of direct syndication as the principal strategy to concentrate on Japanese market with the discharge of "The Ruler PLUS THE Clown" even though they might have choose to just sell the copyright. Because they sent out the film themselves CJ made an increased profit.

CJ Entertainment is positively trying to develop its circulation of Korean motion pictures abroad and is currently exporting to Korean motion pictures to over 20 countries around world in European countries Asian, and the Americas. CJ entertainment straight distributes mainly in Japan, China and america focusing its American distribution together with DreamWorks SKG. CJ Entertainment and DreamWorks' marriage is quite strong and DreamWorks has decided to help CJ market its films in the us more aggressively.

Targeting the Home-Video and Tv Market segments:

CJ entertainment produces many Korean films which were package office strikes in the Korean market through the North american cable TV and have been rather successful. They use the strategy of placing Korean movies and TELEVISION SHOWS on American tv because the tv market in america is quite big unlike Korean tv set market and on the whole television people are more speedily at pursuing consumer tendencies than film viewers. Especially in cities with a higher society of Korean immigrants, Tv set stations which may have some Korean programming can achieve success as much Korean-Americans watch Korean programs on Tv set to feel more linked with life back again "home". Presently, MBC, KBS, and, SBS have program offerings in North american. CJ Entertainment functions channel "CGV" which is Korean movie wire channel in the US offered in select markets.

Launching CGV Multiplex Internationally:

CJ CGV, the cinema affiliate marketer of CJ Entertainment, has been extending its theaters and has exposed three multiplexes in China. Through growing Korean multiplexes in China, CJ is wanting to create a basis for a development and syndication network by setting up this operating-system in China straight. They pray that the multiplexes can play a role as a bridge to hook up Korean and Chinese culture as well as further get spread around the eye for Korean films further supplementing the "Korean wave culture" in the Asian film market.

In the future, CGV designs to extend its business to the other big locations in China such as Beijing or Shanghai, and within 5 years intend to set up as much 30 multiplexes. However, business in China is not showing to be as easy as once thought because of the Chinese language film industry developing so fast. Thus, CJ Entertainment is currently trying to go after an extravagance image and one of high quality to identify itself from its Chinese language rivals. Among its CGV theaters, a joint venture between CGV and a Chinese language partner, was just lately acknowledged by the Chinese federal as the nation's best-quality theatre.

Based on the Korean culture increase and because of the success in China, CJ Entertainment and CGV intend to start additional international sales in other Asian countries such as Vietnam, India, and Japan. They may have recently also open a theater Los Angeles to focus on customers in Koreatown.

Joint Ventures with Foreign Studios:

One of CJ Entertainment's main international strategies from the beginning has gone to invest in overseas production companies. Using this method CJ's wish has been to be able to invest in international film marketplaces and make profits without having to risk launching Korean movies in foreign markets as demand isn't that high. CJ has centered on creating projects with and buying studios mainly in the American and Japanese market segments as they have the most profitable film companies.


CJ Entertainment getting started investing in the American market by investing in the start-up of DreamWorks SKG. Since CJ's preliminary investment of $130 million DreamWorks is continuing to grow to be one of the world's most profitable and respected movie studios. Because of CJ's investment into DreamWorks in early stages, it was actually able to be a founding partner and now gets profits every time the studio makes an effective movie. This deal allowed CJ Entertainment to get profit and acceptance allowing it to further spend money on other American film companies.

CJ Entertainment has been stunning up more bargains and joint endeavors to try and gain a more substantial network, funding, and distribution route in america. CJ has recently signed a development package to build up and produce films for four years with 1949, and production company run by Chris Columbus that has directed such motion pictures as "Home Alone", "Harry Potter and the Sorcerer's Natural stone", and "Lease". In November of 2009, CJ Entertainment formed a deal with Fortissimo Films, a global film sales and financing company. This offer was not simply about creation but allowed CJ usage of Fortissimo's fast film libraries for use on its television stations back Korea.

Apart from investing in and making joint ventures with actual development companies, CJ Entertainment is now more vigorous in the Hollywood film industry by buying individual motion pictures themselves. In October of 2009, CJ became co-financier of "Dino Mom", an animated feature film directed by John Kafka, the person who worked on both "The Adams Family" and "Rugrats" series.


CJ Entertainment's give attention to investing in japan film market has been fairly similar compared to that of its investment in Hollywood, to create relationships in systems within the market so that one day CJ can be a successful and dominant player.

As japan and Korean film market segments tend to be similar than the that of the markets of Hollywood and Korea, CJ has had the opportunity to directly spread its films without having to make joint ventures with Japanese companies. CJ has began to, however, to make distribution easier as well as tap even more into the profitable Japanese film market. In Apr 2010, CJ Entertainment released that it would create a joint venture with Japanese entertainment company, J-Toy, which owns and functions Japanese multiplexes and it is affiliated with Japanese film studio room, Toei. The jv is creating the company, CJ Entertainment Japan, which plans to create 4-5 multinational movies a year. Furthermore, CJ dreams to send out over ten Korean movies a year into the Japanese market and keep development running at Toei to create an additional 5-7 Japanese films per annum for circulation in Japan and Korea. About the merger CEO, Katherine Kim, said, "The company signals the start of [CJ's] global managementWe're assured that the combination of CJ's different contents and T-JOY's revealing program capacity in Japan provides new order and conventions to the world's second-largest film market. "


Our final result I regards to CJ Entertainment's International Strategy is that they are doing an incredible job thus far. Although Korean film industry is currently popular and attaining success, we assume that it's been very smart for CJ to invest in overseas film markets that tend to be more stable and consistently success to help the business manage risk. We also think that it was very smart of CJ Entertainment to create distribution relationships numerous foreign studios as it early on signifies CJ as a pal not rival to major studio room powerhouses. As CJ's occurrence abroad grows up, they might not exactly face as much competition as a studio that just jumped into a international market because for occasion Paramount would not want to stomp over CJ in the American market for they might loose distribution in South Korea. We think that CJ is doing all the privileges things but have a few suggestions because of their future growth.

Continue to purchase Foreign Studios:

We assume that the smartest thing CJ Entertainment could do is to invest further in international studios, creation companies, and videos. Not only does indeed this allow for CJE to get more profit, but it allows the company to create more interactions that it'll need to be a global entertainment player. The film and entertainment industry is very reliant on relationships and respect of course, if CJ keeps buying international studios and jointly producing successful movies it will gain more esteem and power in the industry and can eventually be able to operate successfully in foreign countries without the aid of joint ventures. Operating abroad in this manner will gain the most revenue.

Expand More CGV Multiplexes Overseas:

We believe in growing more CGV theaters overseas it will be easier to deliver CJ Entertainment and CJ Entertainment associated films. Not only this, but we think that the theaters themselves will achieve success, especially in the U. S. market. CGV theaters and multiplexes on the whole offer the movie-goer an event that extends past the taking a look at of the real film. Currently in the us, theaters of this caliber aren't offered but demand will be there. We assume that CGV theaters should be expanded into the says as a luxury theater that people want to invest an evening in. The "experience" of going to see a movie is what many entertainment critics say has been lost in the American market and CGV could bring that back. If successful, film critics may highly compliment the theaters and CJ bringing even more value for the business.

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