[Initial Insight] What’s a Traffic Light Doing on the Screen Dog Monopoly Highway?

On the 14th, citizens are purchasing tickets to watch movies at Seoul CGV Yongsan I'Park Mall. With the distribution of half-price discount coupons, new releases, and hot weather coinciding, the movie theater industry, which had been in a slump, is gradually regaining vitality. Photo by Moon Honam munonam@

The movie 'Tenet' held a paid preview screening before its release on the 26th of last month. It was not a one-time event. On the 22nd and 23rd of last month, it was screened 2,465 times across 593 screens. It attracted 84,706 viewers, ranking second at the box office. Distributor Warner Bros. Korea expected word-of-mouth from people in their 20s and 30s, as this group tends to check reviews and other information before watching a movie.

According to a CGV survey, the number of pieces of information that audiences look up before watching a movie in 2018 was 4.1 for ages 20-24, 3.8 for ages 25-29, 3.4 for ages 30-34, and 3.6 for ages 35-39. A CGV official said, "This year is not much different," adding, "The era of choosing movies based solely on internal factors like actors, directors, or trailers is over."

Paid preview screenings are a shortcut to success for highly praised films. However, for 'Tenet,' it became a thorny path. By the 16th, it had not even attracted 1.5 million viewers. There are two main reasons: the spread of the novel coronavirus (COVID-19) and the unusually complex content. The underwhelming performance led to a drought in the theater industry. From August 26, when 'Tenet' was released, to September 16, a span of 22 days, the total number of viewers was only 2,139,486.

Theater officials unanimously say, "There was no other movie to lead the box office except 'Tenet'." They also said, "Many movies were canceled or postponed due to the spread of COVID-19, causing damage." Some distribution officials have a different view. In summary: "Although there were concerns about the spread of COVID-19, no one dared to compete with 'Tenet,' which even held paid preview screenings and dominated the market."

Movie releases are a game of timing. They avoid the release dates of anticipated films at all costs. This is because there are unavoidable restrictions in securing screens and generating buzz. Ultimately, only movies with less financial burden target niche markets, relying on word-of-mouth even while accepting a severely limited number of screens.

Movie 'Tenet' still cut

Paid preview screenings of blockbuster films like 'Tenet' are a form of violence that steals these opportunities. They demand cuts such as reduced screening times from already released movies. The situation is the same for movies released alongside blockbusters. Theaters usually allocate many screens to movies that have proven box office success. In fact, 'Tenet' had a screening share of 63.5% on its release day and maintained around 60% for seven consecutive days. Paid preview screenings thus encouraged screen monopolization.

To prevent such abuses, the Korean Film Council started operating a Fair Signal service on the integrated ticketing system from the 10th of last month. This selective measure was introduced to block the concentration of screening opportunities on specific movies. It calculates the daily concentration of screening opportunities, marking yellow if the screening share exceeds 40%, and red if it exceeds 50%.

However, its effectiveness is hardly expected. The number of users accessing the integrated system is low, and the data is poor. No sanctions are imposed on movies or theaters with red signals. It is merely a nominal measure.

Ironically, on the first day of the Fair Signal service, 'Deliver Us from Evil' recorded a screening share of 58.8%. The next day, it showed a red signal again with 58.4%. From the 12th to the 19th of last month, it showed a yellow signal for eight days. This pattern was exactly reproduced with 'Tenet.'

Despite periodic controversies, the Korean Film Council remains passive. They claim they cannot intervene in the market regarding screen monopolization or paid preview screenings and turn a blind eye. It is past the stage of asking filmmakers for self-regulation. Many films have already been shelved without securing proper screens. Traffic lights are useless on a highway where blockbusters speed ahead. Perhaps it is time to install speed cameras and issue tickets.