Develop a killer content for sustainability

By Kim Jae-kyoung, Chung Min-uck

From a business perspective, the process of NANTA becoming a musical accepted and loved by the world offers important lessons for Korean conglomerates.

Song Seung-hwan, CEO of PMC Production and producer of NANTA, cited three elements as key success factors in PMC’s attempt to produce a global cultural product: research and development (R&D), killer content, and a professional management system, musts for success in business.

He stressed that in order to keep an entertainment business going, you have to have great content that can ensure a stable cash flow. At the same time, to develop such a product, you have to be active in R&D.

He points out that producing a performance is a kind of art but also a business as it has to be profitable in order to keep the project going, especially in the case of Korea which has a small market.

“Film producers make big bucks with one mega hit movie but can also go bankrupt with a bomb. Since we have a killer content like NANTA bringing in stable cash, our financial structure stays in good shape and we can invest in new products. Killer content is a must for a company that produces cultural product. Otherwise they are not sustainable,” said Song.

He also emphasized the importance of making a distinction between the management of a business and the production of a cultural product.

He says that from the beginning, he decided to co-manage PMC Production with a management expert, which he claims has enabled him to develop creative products, including NANTA.

“Most artists fail in business because they lack knowledge in management,” said Song. “Even if you have a business mind, you need a management specialist to minimize your chances of failure,” he said. “You need to form a team with a business expert and a culture expert in order to commercialize a cultural product. It’s hard for one individual to have both talents.”

Citing Apple CEO Steve Jobs, he said that the reason Apple is doing well is that Jobs has a number of great business partners. He is not doing all the work alone. “In my case, although the media tend to highlight just me, I have many partners in this company,” Song said.

On top of the three factors mentioned above, he also picks a sense of urgency to survive as the driving force behind NANTA’s and PMC production’s global success.

“I was heavily in debt because I took out a large amount in loans to upgrade the quality of the performance and to expand our NANTA theatres. I had to sell tickets to pay back the debt. But it was impossible to make enough money to pay back such large amounts of money by selling tickets only to Koreans. The urgency for achieving success was the key driving force behind NANTA going global,” said Song.

The veteran actor points out that in order for Korean firms to become more competitive in the global market, they should focus more on details in their products.

“I remember that when I lived in New York back in the 1980s, it was details that made Korean goods less competitive than those from advanced countries. Korean firms, such as Samsung and LG, have come closer to global standards. But I think we (Korean firms) are still lacking in details,” he said.

“In contrast, Japanese firms’ strength lies in details. I still think we are behind in this area. Samsung and LG have good ideas and quality products but have yet to catch up with their competitors in terms of details,” he added.