CJ Olivenetworks has consolidated its scattered broadcasting and media business units into a single organization through a recent restructuring. The move aims to integrate capabilities spanning video content production, system integration and overseas distribution. Industry observers see it as a bid to strengthen the company's grip on the media sector — considered a niche segment within Korea's systems integration (SI) market.
According to IT industry sources on the 27th, CJ Olivenetworks recently restructured its broadcasting and media division to incorporate the "Broadcasting and Media Business Team" and the "AI Production Team." The Broadcasting and Media Business Team handles broadcasting-related SI projects, including IT system development for broadcast production studios and virtual production facilities. Previously, CJ Olivenetworks had grouped its SI business teams together, but starting this year, it carved out the Broadcasting and Media Business Team and assigned it to a separate organization. The broadcasting and media division comprises teams responsible for broadcast transmission, overseas localization of K-content, and broadcast content distribution consulting.
The restructuring is seen as laying the groundwork for CJ Olivenetworks to expand its broadcasting and media business. Among SI firms affiliated with major Korean conglomerates, CJ Olivenetworks is the only one engaged in media-related SI work. Targeting the broadcasting and media sector therefore allows the company to pursue immediate revenue growth while sidestepping direct competition with major SI players such as Samsung SDS (018260), LG CNS (064400) and SK AX.
Broadcasting and media ranks as one of the three biggest contributors to CJ Olivenetworks' SI revenue. For the other two — smart factory and logistics SI — competition with major SI firms is hard to avoid when bidding for projects outside CJ Group affiliates. By doubling down on the niche broadcasting and media business, however, CJ Olivenetworks aims to cement its dominance in that segment.
CJ Olivenetworks' broadcasting and media business targets not only CJ ENM (035760) channels but also external contracts. The company has been securing major external deals since last year. Earlier this year, it completed an upgrade of the broadcasting system at "LoL Park," the dedicated arena in Seoul's Jonggak for the "League of Legends" e-sports league. Last year, it installed media facades and interactive digital content at the Gangneung Hockey Centre in Gangwon Province and at Pyeongchang Peace Theme Park.
The latest restructuring also appears to be part of a strategy to bundle various media business teams together to win external contracts more cohesively, by offering business packages that combine broadcast system infrastructure with content production. For the same reason, the AI Production Team — which produces video content using generative AI — was placed under the broadcasting and media division.
Revenue growth at CJ Olivenetworks is expected to bolster the financial profile of its parent, CJ CGV (079160). CJ CGV posted first-quarter revenue of 573.4 billion won and operating profit of 8.7 billion won this year. Over the same period, CJ Olivenetworks recorded revenue of 211.8 billion won and operating profit of 11.3 billion won. Since becoming a CJ CGV subsidiary in June 2024, CJ Olivenetworks has consistently been the largest contributor to its parent's revenue and operating profit.
A CJ Olivenetworks official said, "To cement our position as the No. 1 IT company in the media and entertainment sector, we will strengthen our business competitiveness by upgrading our service framework based on AI transformation (AX)."
