Hyundai Motor's Short Film 'Night Fishing' a Hit... Innocean Makes Full-Scale Entry into Film Business

Cinema by Brand unveiled for the first time at the Busan International Film Festival
Hanwha Group joins as first partner; joint IP ownership and global OTT distribution under consideration
CEO Kim Jeonga: "Cars, too, will become media platforms
Content production and distribution are the ultimate goal"

Innocean, an advertising agency affiliated with Hyundai Motor Group, is making a full-scale entry into the film content business. The company plans to move beyond its existing advertising production and agency business by securing film intellectual property (IP) and expanding into content production and distribution. In the long term, it is also considering ways to use cars as a new media platform in the era of autonomous driving.

Kim Jeonga, CEO of INNOCEAN, speaks with reporters at BEXCO Exhibition Center 2 in Haeundae-gu, Busan, on the 12th, during the 31st Busan International Film Festival Asia Contents & Film Market (ACFM). Courtesy of INNOCEAN.

At a press conference held at BEXCO in Busan on October 12, Innocean CEO Kim Jeonga said, "We are looking to expand our content business by moving beyond our existing role as an advertising agency. Content is one of Innocean's highest-priority businesses going forward."

That day, Innocean unveiled its film content platform, "Cinema by Brand," for the first time at the Asian Contents&Film Market (ACFM) of the Busan International Film Festival. The platform connects corporate brands with filmmakers to bring a brand's philosophy and values to life through film.

The direct impetus for the company's entry into the business was the short film "Night Fishing," which won the Grand Prix at the Cannes Lions International Festival of Creativity last year. Produced with Innocean's participation and starring actor Son Suk-ku, the film made headlines by screening in theaters for an admission fee of 1,000 won.

"There were initially suggestions to release it for free on YouTube, but I argued that we should charge for theater screenings," CEO Kim said. "Theaters were puzzled at first, but audiences responded so enthusiastically that screenings, initially scheduled to run for two to three weeks, continued for more than six weeks."

"Its theater occupancy rate was higher than that of 'Inside Out,' which was screening at the time," she added. "We confirmed that consumers are willing to pay if the content is good enough."

This experience led Innocean to expand film content into a new business model. "People don't distinguish between advertising and content. Some films are more boring than ads, and some ads are more entertaining than films," CEO Kim said. "Marketing created by brands can certainly be embraced as entertainment."

Hanwha Group is the first partner for Cinema by Brand. Innocean will produce three short films based on "space-based solar power," one of Hanwha Group's future businesses. Directors Lee Jinho, Hong Eui-jeong, and Malaysian-born Edmund Yeo have been selected. Production is now getting underway, with the completed films targeted for release next year.

Unlike conventional advertising production, the project is designed to give filmmakers as much creative freedom as possible. Innocean, the Busan International Film Festival, and the Korean Film Producers Association worked together to select the directors, while Innocean did not participate directly in the selection process.

"We established the principle that companies can sponsor film production without resorting to product placement (PPL) that features products or logos," CEO Kim explained. "This is a new model for delivering a brand's message while protecting creators' rights."

Kim Jeonga, CEO of Innocean (second from left), delivers opening remarks at the BEXCO Exhibition Center II in Haeundae-gu, Busan, on the 12th during a special session at the Asia Contents & Film Market (ACFM) of the 31st Busan International Film Festival. Innocean unveiled its new content platform, “Cinema by Brand,” for the first time at the festival. Courtesy of Innocean.

The business structure also differs from that of a conventional advertising agency. The advertiser and Innocean jointly secure the film IP, and additional business opportunities are generated through promotion, marketing, and distribution after production. "In the case of 'Night Fishing,' more than twice as much was spent on promotion and marketing as on film production, and Innocean handled that work," CEO Kim said. "Revenue can be generated not only by creating content, but also by promoting and distributing it."

The Hanwha Group project is aimed at the global market. "Hanwha Group asked us to produce films for a global audience," CEO Kim said. "We are initially targeting the U.S. market and are also considering a release through online video streaming (OTT) platforms."

Innocean plans to run a Cinema by Brand project every year and expand the range of participating companies and content genres. It is also considering involving multiple advertisers next year. The company is exploring ways to broaden its production beyond its current focus on narrative films to include animation and documentaries.

In the long term, Innocean also plans to connect content with Hyundai Motor Group's mobility business. The company believes that advances in autonomous driving technology could transform cars from a means of transportation into spaces for consuming content.

"In the era of autonomous driving, people will spend more time consuming content inside cars, and the car itself will become a media platform," CEO Kim said. "The ultimate goal of our content business is to establish a business model for producing and distributing exclusive content."

"Advertising agencies are in an industry that must read and respond to market changes faster than anyone else," she added. "In the future, Innocean will demonstrate a variety of business models that differ from those of traditional advertising agencies."

This content was produced with the assistance of AI translation services.