The “Squid Game” effect increases the shares of production companies


Poster of the Netflix series ″ Hellbound ″ [NETFLIX]

As Korean series become global sensations, the actions of production companies become full-fledged hits.

This is the “Squid Game” effect.

Shares of J Contentree, which controls JTBC studios, renewed their 52-week high, reaching 74,300 won ($ 63) intraday Thursday. The surge was largely driven by expectations for Netflix Korea’s original “Hellbound”, released Friday and produced by affiliate JTBC Studio.

JTBC Studios was also behind Netflix’s original Korean series “DP,” which topped Netflix’s charts in a number of countries including Korea, Thailand and Vietnam, after streaming began in August. .

On Friday, J Contentree shares lost momentum and fell 2.78% to close at 69,900 won, although they are up 86% year-to-date.

The company has established active partnerships with global video streaming companies. With Netflix, he signed an agreement to co-stream around 20 TV series on JTBC and Netflix and to produce six to nine Netflix original series over the three years from May 2020, according to a report by analyst Kim. Hoi-jae from Daishin Securities. released Thursday.

Kim said he expects J Contentree’s business to continue growing in 2022 based on the deal.

The company has also been quick to work with Disney +, which has been available in Korea since the start of the month.

The drama series “Snowdrop,” starring Blackpink’s Jung Hae-in and Jisoo, will air on both JTBC cable channel and Disney + in December. According to a report by analyst Kim, the 14 Korean dramas currently available on Disney + are J Contentree products, including “SKY Castle” and “The World of the Married”.

Kim set a price target of 81,000 won for J Contentree over the next six months and issued a buy recommendation.

Shares of Studio Dragon, the production company behind the popular webtoon-based TV series “Yumi’s Cells” and “Hometown Cha-Cha-Cha”, were also strong, rising for six trading days.

Analysts say Studio Dragon shares may rise further in the coming year.

Next year “will be the year the company sees its shares exceed the current price range,” Meritz Securities analyst Lee Hyo-jin said in a report last week.

Lee said the opportunities are clear for Studio Dragon in 2022, as it will introduce an American drama and renew a content release contract with Netflix.

Studio Dragon announced in June that it would co-produce “The Big Door Price”, a drama, with US production companies Skydance Media and Apple TV +. The series is slated to air on Apple TV + at the end of next year. According to Studio Dragon, this is the first time for a Korean production company to produce an American drama series for global audiences, beyond selling finished content or selling rights.

As for the deal with Netflix, it’s likely that Studio Dragon could supply its content to Netflix at higher prices due to global interest in Korean drama series, according to Lee.

BYKIMJEE-HEE[[email protected]]


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