KT’s ENA Brand Struggling Despite Organizational Reorganization: What Went Wrong?

IT·Science

Submitted2024.04.27 20:00
Edit2024.04.27 20:12

Despite KT’s organizational reorganization… ENA is failing one after another

/Photo=ENA Still from ‘Weird Layer Woo Young-woo’ “In three years, we will increase the brand value of ENA to 1 trillion won.”

This is what CEO Yoon Yong-pil said at the launch ceremony of the combined corporation Sky TV and Media Genie, giving his goal to grow the ENA channel to a high level through the cooperation of KT Group. On November 1, 2022, KT merged the group’s broadcast channel users (PPs) Sky TV and Media Genie into one company. The mission remained the same with Sky TV. Sky TV, a major PP with 12 channels including ENA, is expanding its drama and original entertainment based on the collaboration of media and content affiliates within the group, entering the ‘highest level’ rating of CJ ENM channels such as tvN among about 300 broadcasts. he expressed his desire to focus on it.

However, it has been almost two years since ‘Weird Layer Woo Young-woo’, which was the opening act of Sky TV’s rebranded channel ENA, ended, and work with load level has not been completed. -observation or theme that transcends this work. It is noted that ‘I Am SOLO’, which is currently considered ENA’s highest award, is a ‘simulcast’ rather than an ‘original’ programme. and therefore it is noted that original content has strong box office power. it is needed.

KT has shown interest at group level in the media sector, even undertaking an organizational reorganization in January 2023. However, the general impression is that significant results have not yet been achieved. There is also a sharp assessment that none of the activities, such as strengthening the awareness and competitiveness of eight channels in addition to the four channels of the ENA brand and increasing the proportion of in-house production programming, which were the objectives of that time. the launch of the combined company, was achieved. KT’s media business includes production and platforms. In the media value chain, design and production is based on Studio Genie, and the platform is based on Skylife. Dramas planned and produced by Studio Genie are prioritized for Sky TV channel programming, and ENA’s original content is provided as original content to Skylife satellite broadcasting and HCN cable TV broadcasting.

However, the number of self-produced films is decreasing year after year. Studio Genie said, “This is a strategy to effectively manage production costs and produce high-quality works,” but some say this may be due to the performance of affiliated companies that is getting worse.

Kim A-ram, a researcher at Shinhan Investment & Securities, said, “Skylife recorded a deficit of 26.1 billion won in the fourth quarter of last year only decreased, and some expenses, such as program usage fees, increased.” he said. Kim Jang-won, a researcher at BNK Investment & Securities, said, “Skylife service sales are declining due to the loss of satellite and cable TV subscribers, and the cost burden has increased due to the strengthening of the content industry, “Instead of reducing the number of broadcast productions considering the burden of investment costs, we are focusing on large content.” “It looks like there will be changes on the line,” he said.

Some say that because of this situation, they focus on making entertainment rather than dramas that require huge production costs. Kim Ho-sang, CEO of Sky TV, who took up the post early this year, is also a KBS entertainment producer. In the first season of this year, ENA will air ‘I Am Ground’ starring Kwanghee, Lee Sang-yeop, Kim Min-gyu, and Son Dong-pyo, ‘I’m a Subscription King’ starring Lee Eun- ji, Hibab , Lalal, Enjoy Couple, and Jin Yong-jin, and Kwak Tube and Pani Bottle, directed by Wonji.

Within the KT Group, voices are raising issues with the Sky TV structure regarding the unconditional purchase of Studio Genie content. Sky TV recorded an operating loss of 40 billion won last year alone, and Studio Genie’s work has to be bought whether it’s a box office or not. While the company, which recorded an operating profit of 9.6 billion won in 2002, its operating profit decreased by almost 50 billion in just one year, Studio Genie’s sales were recorded at 221.4 billion won, almost doubling from 101.5 billion won in 2022. Some say that Studio Genie’s sales are based on Sky TV, as most of its sales come from original content production and rights sales broadcast TV and OTT. The loss of Sky TV also affects its parent company, Skylife. Last year, Skylife’s accumulated sales were KRW 1.0256 trillion and operating profit was KRW 14.1 billion. Compared to the previous year, sales increased by only 3.5%, while operating profit decreased by 77.6%.

In a statement published in February this year, the Sky TV branch of the National Union of News Workers pointed out, “The predatory level of drama rights fees, which concerned most members, led to a significant deficit at the end. ” The Skylife branch of the National Union of News Workers also expressed, saying, “We need to make wise judgments and take action regarding the reasonable operating plan and development direction for Sky TV, a 20-year-old subsidiary discussed the future of Skylife.”

Kim So-yeon, Hankyung.com reporter [email protected]