Japanese film and TV studio Toho International's $225 million investment in the US studio of South Korean entertainment giant CJ ENM is seen by industry experts as CJ ENM's move to strategically assemble a content powerhouse as it readies to battle streaming giants Netflix and Disney+.

Toho International is the American branch of the Japanese production firm behind the current box office hit, “Godzilla Minus One.” The Korean release of the film has not yet been confirmed.

So what does CJ ENM gain from giving Toho a 25 percent stake at the CJ ENM-owned US studio, Fifth Studio?

Local experts say that CJ ENM can benefit from a robust global distribution network, hence strengthening its competitiveness using Asian content’s unique and original stories, characters and worldviews.

“It’s clear that CJ ENM plans to become Asia’s best content and streaming platform to compete against global services like Netflix and Disney+ that currently dominate the local market. In that sense, joining efforts with Toho is a good start,” pop culture critic Jung Deok-hyun told The Korea Herald.

“It is a very realistic strategy (to collaborate with a Japanese studio) because joining hands with allies in Asia can level the playing field for CJ ENM when competing against US content powerhouses like Netflix or Disney+ in Hollywood -- CJ ENM can’t become ‘global’ like Netflix overnight,” Jung said

In January last year, CJ ENM bought a US-based TV and film producer formerly known as Endeavor Content at 920 billion won ($699 million) and renamed it Fifth Season. Endeavor Group Holdings currently remains a strategic shareholder.

CJ ENM said there is a possibility that the company will leverage Japan’s unique content such as animated films and combine it with Korean production firms’ know-how for content remaking and genre-bending adaptation.

Industry insiders were hopeful that small and mid-sized production firms will also benefit from CJ ENM’s focus on Asian content.

“Currently, many local production firms are struggling because there are only a few opportunities for them to work on streaming platforms’ original films or series. This is because Korean streaming platforms like Wavve or Tving are not performing well. Netflix chooses what and who to work with and, of course, only a few are selected,” said an industry insider who declined to be named.