“We can expect more profit in the future as many channels are already proposing the second season,” Ji InHae, an analyst at Shinhan Investment Corp., said in a report.
Shares of Korean drama and other content companies jumped on Wednesday after Netflix’s earnings results showed customer growth in Asia, helping the streaming giant offset declines in the US and Europe. Bucket Studio and Pan Entertainment surged more than 12% each.Other stocks have also benefited from the popularity of “Extraordinary Attorney Woo.” Satellite broadcasting provider KT Skylife Co.
“Skylife is expected to see a level-up in its ads revenues and increased competitiveness in its channel,” said Ji. The phenomenon, to some extent, resembles the stock-market frenzy surrounding “Squid Game” last year, when dozens of local TV and movie producers saw their stock prices skyrocket amid investor euphoria and interest from global companies including Walt Disney and Apple.
Korea’s entertainment stocks, however, see sharp volatility depending on the cycle of a series, and the fading pandemic boost to its main platform – Netflix – is a case for caution to investors keen to jump on the rally. Even with this month’s surge, Astory remains down more than 30% from October.