[Reporter Lee Da-gyeom, Daily Economy Star Today]
Studio Dragon (CEO Kang Cheol-gu, Kim Young-gyu) announced its fourth quarter 2020 results on the afternoon of the 4th.
Studio Dragon achieved sales of KRW 137.7 billion in the fourth quarter and total sales of KRW 525.7 billion in 2020. This is the highest sales ever. This high growth is the result of the increase in IP value brought about by the expansion of K-drama’s global influence and the increase in overseas sales.
◆ 2020 4Q earnings summary
Sales in the fourth quarter of 2020 were 137.7 billion won, an increase of 41.3% from the same period last year. Overseas sales accounted for 52.5% of the total sales, up 20% year-on-year. Operating profit reached 4.6 billion won, achieving both quantitative and qualitative growth. In particular, sales in the fourth quarter of 2020 were 86.3 billion won, an increase of 101.6% over the same period last year. The supply of Netflix original ‘Sweet Home’ and the increase in sales of library (old) works led to the achievement of the highest sales ever.
◆ Total summary for 2020
In the first quarter of 2020, sales amounted to KRW 122.3 billion, sales in the second quarter were KRW 141.4 billion, sales in the third quarter were KRW 106.3 billion, and sales in the fourth quarter were KRW 137.7 billion, and the total sales in 2020 was KRW 525.7 billion. This is Studio Dragon’s greatest achievement, which has steadily drawn a growth graph since the spin-off. Total sales in 2020 were up 12.2% from the previous year, which is the result of the increase in IP value due to the expansion of K-Drama’s global influence. Through work to improve profitability, such as increasing IP value and production cost efficiency, operating profit reached 49.1 billion won, a 71.1% steep growth year-on-year.
As of the end of 2020, the number of creators affiliated is 231, and the number of IPs sold overseas is 157. Thanks to global popularity, the average selling price (ASP) rose 29% based on new titles, and this increase contributed to a 3 percentage point increase in the operating margin.
◆ Strengthening the status of K-drama
2020 was a year to see the remarkable growth of K-drama. According to streaming service ranking site Flixpatrol, Studio Dragon’s 5 contents (Crash Landing on Love, Record of Youth, Startup, The Uncanny Counter, Sweet Home) were ranked in the top 10 of Netflix Worldwide and were loved by viewers around the world. In addition, the New York Times of the United States ranked “Psycho, but it’s okay” as the top 10 international TV show, and evaluated it as “a work created by Korean drama makers like wizards”, and focused on the popularity of K-dramas in famous media in the United States, Japan and Singapore. It was a year when global interest was hot.
◆ Growth Strategy in 2021
In 2021, the number of domestic and overseas OTT operators is increasing, and another perception is predicting a change in the content market. Studio Dragon plans to expand its business model by diversifying content exposure channels and platforms, and maximize profits through strategic collaboration. In particular, it plans to steadily expand to meet the rapidly changing external environment, such as steadily expanding the digital lineup and trying to diversify formats and genres according to changes in viewing platforms.
Studio Dragon will not only export finished K-drama products, but also plan to enter the US market directly. It is expected to participate in co-planning and production of international dramas that can be enjoyed by leading American media companies and people around the world, and to develop systems and capabilities by producing blockbuster-class masterpieces.
Studio Dragon CEO Kang Cheol-koo said, “2020 was a year when we realized the formula that if we can work in the global market, we will expand the impact of K-Dramas by pursuing the overwhelming quality of content at the level of major global studios. “We will leap forward to become a ‘premium storyteller’ that creates novel, universally sympathetic and fun stories through development and production.”
Photo l Studio Dragon
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