T-Cast, a media subsidiary of Taekwang Group, has decided to halt its in-house production.
On the 17th, T-Cast announced through an internal memo written by CEO Eom Jae-yong that "after much deliberation, we have made the difficult decision to stop in-house production."
In this regard, a T-Cast representative confirmed to Maeil Business Star Today, "It is correct that we have decided to halt in-house production." They added, "The company has made significant efforts to strengthen its capabilities in the in-house production sector, but the current decline in profitability is a major issue. It is a problem that everyone in the field is aware of that production is being hesitated not only at T-Cast but everywhere."
They continued, "This measure is a change in the company's operational system," and emphasized, "We are not giving up on securing content; rather, we believe that securing IP is even more important and we aim to acquire high-quality content."
On the same day, CEO Eom revealed in the internal memo that "the media broadcasting industry has faced a crisis due to various complex factors such as a rapid shift to OTT, rising production costs, and a shrinking advertising market for several years. In order to overcome this crisis, each broadcasting medium is establishing and implementing various survival strategies, and I believe that all employees are feeling this trend."
He further explained, "Our company has also established a crisis management strategy through securing high-quality in-house production IP since 2020, and has actively invested in building an in-house production organization. However, unfortunately, we were unable to overcome the wave of crisis shaking the entire broadcasting industry. Revenue and profitability in the production sector have deteriorated, and if this trend continues, the very existence of the company is under threat. As the economic situation worsens, the entire group has entered an emergency management system, and each subsidiary is required to make intense self-help efforts to overcome the crisis."
CEO Eom also stated, "This is by no means a light decision, but a painful one made after thoroughly reviewing all possible alternatives from various perspectives," and explained, "Accordingly, we plan to implement unavoidable follow-up measures such as the abolition of production positions, disbanding the production team, and reallocating production personnel."
He added, "I ask for the deep understanding and active cooperation of all employees as a desperate measure to overcome the company's impending crisis."
T-Cast operates nine channels, including E Channel, Screen, and Drama Cube. Its representative works include 'Brave Detectives', 'Sisters Who Play', and 'Saturday is Good for Rice'.
[Kim So-yeon, Star Today Reporter]
