Online video service Tving posted an operating loss of 19.2 billion won in the first quarter, narrowing its deficit and raising expectations for improved profitability after extending its content amortization period.
CJ ENM said on May 7 during its 2026 first-quarter earnings conference call that Tving recorded a 19.2 billion won operating loss for the quarter. That compared with a 25.7 billion won operating loss a year earlier, reducing the loss by 6.5 billion won.
A CJ ENM official said the company changed Tving’s amortization method for content rights from two years to four years. The official said the previous system was designed around broadcast-centered distribution cycles, but the shift to an OTT-driven market led the company to adjust content useful lives to better reflect reality.
The official added that the change was made to align with amortization practices used by global OTT operators.
CJ ENM said it will expand content investment this year centered on Studio Dragon while also improving cost efficiency by managing production costs per episode. A company official said domestic new-content investment had been somewhat stagnant, but investment will increase this year led by Studio Dragon. The official said CJ ENM plans to systematically manage per-episode production costs to limit the overall pace of cost increases.
On a supply gap involving Fifth Season, CJ ENM said it was temporary. The company said it is discussing series supply with multiple platforms, and that Fifth Season posted first-quarter revenue of 233.6 billion won and an operating loss of 2.9 billion won, with the loss improving by 14.5 billion won from a year earlier.
CJ ENM also reported on a consolidated basis first-quarter 2026 revenue of 1.3297 trillion won and operating profit of 1.5 billion won. That was up 16.8% and 107.2%, respectively, from a year earlier.
Revenue in the entertainment division rose 22.6% to 951.1 billion won. The division remained in the red with an operating loss of 19.0 billion won, though the loss narrowed by 7.2 billion won from a year earlier.
The commerce division extended revenue growth but saw weaker profitability. First-quarter revenue rose 4.5% to 378.5 billion won, while operating profit fell 7.6% to 23.9 billion won.
* This article has been translated by AI.
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