[Inside Chodong] "Vicious Cycle of Poverty": Cinemas' Penny Wise, Pound Foolish Choices

Ticket Price Hikes in the New Era of Competition
Release Promotion Funds Lose Effectiveness
Free Pass Distribution on the Rise...
The Irony of Declining Film Value

On the 18th, a notice about the increase in movie ticket prices was installed at CGV Yongsan I'Park Mall in Seoul. On the same day, CGV announced that to overcome the crisis caused by the prolonged COVID-19 situation, movie ticket prices will be raised by 1,000 won starting from the 2nd of next month. Photo by Moon Honam munonam@

Cinemas are still in a dire situation. Last month, the number of moviegoers was 2,562,099, which is less than February (3,111,920) and March (3,256,095). Films such as "Seobok," "Godzilla vs. Kong," "The Book of Fish," and "Nobody" all failed at the box office. Industry insiders unanimously blame COVID-19.

However, cinemas in China, the epicenter of COVID-19, are crowded every day. During the Lunar New Year (Chunje) and Qingming Festival holidays, they recorded the highest sales ever. The Labor Day holiday ending on the 5th is also expected to break records due to the success of the Chinese version of "Your Wedding." In Japan, "Demon Slayer: Mugen Train," released last year, became the highest-grossing film of all time. Vietnam also achieved its highest-ever box office revenue with "The Old Father," released in March.

Why is South Korea alone suffering from such a prolonged drought? Cinema officials say, "Because no highly anticipated films have been released." They complain that mid-to-large scale films are postponing their releases out of fear. However, films that had generated expectations before release, such as "Seobok," "Godzilla vs. Kong," and "Wonder Woman 1984," all failed to attract even 800,000 viewers. "Minari," which won actress Youn Yuh-jung the Academy Award for Best Supporting Actress, barely surpassed 1 million viewers.

Amid continuous stagnation, distributors and producers are not only transferring rights to online video services (OTT) but also pushing for simultaneous releases with cinemas. Regarding "Seobok," which was the starting point, the Korean Film Council stated, "We expect it to be the first milestone on the path where cinemas and OTT enter a symbiotic relationship."

In this new era of competition, cinemas have instead raised ticket prices. Especially CGV has increased prices by 2,000 won in the past six months. The weekday price is 13,000 won, and the weekend price is 14,000 won (based on adult 2D movies during general hours). The increase is used to promote new releases. An additional 1,000 won is given to distributors and producers separately from screening fees. The intention is to lower the break-even point and ease the burden of releasing films.

Movie 'Memory of Tomorrow' Still Cut

As a result, the release promotion fund has failed to normalize cinemas. Distributors and producers who have spent huge capital remain unmoved. Instead, it has only increased the burden on consumers, worsening the situation. The driving force behind the film industry's success over the past 20 years has been price competitiveness. It established itself as an affordable cultural enjoyment method, increasing the average annual number of movie viewings per capita to 4.37. According to the Korean Film Council, the average domestic movie ticket price did not exceed 8,000 won until 2016. Now, it is about twice the monthly subscription fee for OTT services.

A considerable number of moviegoers do not pay a single won. The controversy surrounding Seo Yea-ji made "Remember Tomorrow" a representative example. Released on the 21st of last month, it topped the box office for six days. This was the result of distributing about 30,000 free tickets. Multiplexes and distributors/producers held events to attract audiences. An official explained, "Due to COVID-19, offline events were impossible, so marketing strategies were shifted."

"Remember Tomorrow" failed to attract even 20,000 viewers on its opening day but still ranked first at the box office. Distributors and producers heavily promoted the ranking. However, by the 4th, it had only drawn 247,776 viewers. It is truly a vicious cycle of poverty.