[THE INVESTOR] Ebest Investment & Securities on Jan. 8 chose two drama production companies -- CJ ENM’s Studio Dragon and Joongang Media’s Jcontentree -- as top stock picks.
“Competition in the local industry will intensify as giant media companies such as CJ, Joongang and Netflix vie to churn out drama content,” said analyst Kim hyeon-yong.
The stock price of Jcontentree, operator of cable channel JTBC, has been soaring on the success of the drama “Sky Castle,” which focuses on the tragic lives of upscale families that are obsessed with sending their kids to good schools. With this success, the firm has been narrowing the gap with rival channel tVN operated by Studio Dragon.
On the other hand, tvN also has been seeing high ratings with its drama “Memories of the Alhambra.” Both “Sky Castle” and “Memories of Alhambra” are being aired on Netflix.
This year, an estimated 108 episodes of TV drama series are to be produced, rising by around 10 percent from last year. In particular, Studio Dragon will produce more than half of tent-pole drama contents such as “Asadal Chronicles,” starring Song Joong-ki and Jang Dong-gun.
“Investors should keep an eye on companies that are going strong with their own broadcasting platforms coupled with distribution to Netflix,” said Kim.
By Lee So-jeong (firstname.lastname@example.org)