Shinsegae Group's investment of 1.4 trillion won in the acquisition of Warner Bros. is seen as more than just a foreign equity investment. The strategy aims to create a new business model that combines retail and entertainment by linking global intellectual properties (IPs) such as Harry Potter, Game of Thrones, Mission: Impossible, and Top Gun with Shinsegae's shopping malls, theme parks, online video services (OTT), and memberships.
The key lies in Shinsegae's strength in 'space.' Starfield, operated by Shinsegae Property, has developed a complex shopping mall model that integrates shopping, dining, entertainment, and leisure to increase customer dwell time. By adding global IPs, the shopping space can be transformed into a destination for enjoying content.
According to industry sources, Shinsegae is considering introducing experiential facilities and themed spaces utilizing Paramount and Warner Bros. IPs at Starfield, Starfield Market, and Starfield Village. Pop-up exhibitions and experiential facilities based on content like Harry Potter and Mission: Impossible are among the potential applications.
The most immediate beneficiary is expected to be the 'Hwaseong Star Bay City' project in Gyeonggi Province, where Shinsegae plans to develop a large-scale theme park. Initially, the plan was to utilize Paramount's Mission: Impossible, Star Trek, and Top Gun, but the addition of Warner Bros. content significantly broadens the range of available IPs.
This investment could also change the role of Shinsegae Property. While it has focused on developing and operating complex shopping malls centered around Starfield, it may now expand its business scope to include content planning and experiential space management using global IPs. This shift represents a move from a real estate development and leasing focus to enhancing space value through direct content utilization.
Another business opportunity Shinsegae sees is the integration of OTT and memberships. By linking HBO Max and Paramount+ with the group's online and offline memberships, including those at E-Mart, it can use content subscription benefits as a customer retention strategy. This means expanding the traditionally discount-focused retail membership into a lifestyle service that includes content.
Shinsegae emphasizes 'customer touchpoints' in this investment. Both retail and entertainment are businesses that consumers experience directly. By combining global content with its existing offline spaces, Shinsegae expects to attract new customers while increasing visit frequency and dwell time.
In the long term, Shinsegae envisions not just utilizing content but also producing it. This involves collaborating with Paramount, which now includes Warner Bros., to co-produce original Korean content and distribute it globally through HBO Max and Paramount+.
Ultimately, the core of this investment is Shinsegae's aim to expand its competitive edge in retail from 'products' to 'content and experiences.' By connecting Starfield with global IPs and OTT, Shinsegae seeks to broaden its business scope into a platform that integrates retail and entertainment.
A Shinsegae Group official stated, “This investment will provide an opportunity to leap forward as a platform company in the Asian content market.”
* This article has been translated by AI.
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