2022 Film Industry Revenue 1.1602 Trillion Won
7.5 Trillion Won Decrease Compared to Pre-Pandemic 2019
Market Contraction and Investment Decline... The Future of Cinemas
Will the sun rise red again in the theater industry? Our lives changed due to the COVID-19 pandemic in 2020. Movie theaters, as multi-use facilities, were empty. As time spent at home increased, Over-The-Top (OTT) platforms rapidly took root. In 2022, the third year of fighting the virus, we entered the endemic phase. While major industries such as travel and shopping revived, the film industry could not fully smile.
Although viewers had to wear masks while watching movies, the allowance of eating and drinking inside theaters provided some relief. The share of popcorn sales at concession stands increased from 23% to 63%. The purchase rate also surged. Seven out of ten moviegoers ate popcorn while watching films. Theaters collectively raised ticket prices.
As ticket prices rose, audiences became more cautious. Unlike before when people visited theaters just to watch movies, they now only went when there was a must-see film. With more options to watch at home, a reason was needed. The mood turned colder. If a movie was not fun, CGV’s movie rating system 'Golden Egg Index' was mercilessly broken within half a day of release.
112.8 Million Theater Visits in 2022
According to the Korea Film Council’s integrated ticketing system (KOBIS), 1,774 films were released and 2,823 screenings were held in 2022. Total box office revenue was 1,160.21173 billion KRW, and the number of viewers was 112.805053 million. The only film to reach 10 million viewers last year was 'The Outlaws 2,' starring and produced by actor Ma Dong-seok. The film attracted 12.693302 million viewers and earned 131.29744 billion KRW in revenue, accounting for 11.3% of total box office revenue.
The total number of theater visitors in 2022 was 112.805053 million, about half of the 226.678777 million in 2019. This shows a significant contraction of the film market compared to pre-pandemic levels. Annual box office revenue was 1,160.2 billion KRW. Although this nearly doubled compared to 2021’s 584.53898 billion KRW, which was hit hard by COVID-19, it was about 750 billion KRW less than the 1,913.98908 billion KRW recorded in 2019.
Despite the increase in ticket prices, total revenue did not rise significantly. The three major multiplex chains?CGV, Lotte Cinema, and Megabox?increased ticket prices by 1,000 to 5,000 KRW, yet the revenue gap was noticeable.
Sequels Dominate Top 10 Hits... 'The Outlaws 2' the Only 10 Million Viewer Film
Among the top 10 box office hits last year, six were Korean films and four were foreign films. Of these, seven were sequels produced based on the success of their predecessors.
The top film, 'The Outlaws 2,' attracted 12.693302 million viewers and earned 131.29744 billion KRW. Following was the summer release 'Top Gun: Maverick,' starring Tom Cruise, which drew 8.177446 million viewers and earned 87.85536 billion KRW. 'Avatar: The Way of Water,' released last month, quickly attracted 7.313207 million viewers, ranking third with 90.29578 billion KRW in revenue. 'Hansan: Rising Dragon,' the second film in director Kim Han-min’s Admiral Yi Sun-sin trilogy, was watched by 7.264934 million viewers and earned 73.7062 billion KRW.
'Confidential Assignment 2: International,' produced by JK Film, attracted 6.982840 million viewers during the Chuseok holiday, earning 70.91635 billion KRW. Marvel’s 'Doctor Strange in the Multiverse of Madness' drew 5.884587 million viewers, ranking sixth with 62.64872 billion KRW in domestic revenue. Actor Lee Jung-jae’s directorial debut 'Hunt' ranked seventh with 4.352390 million viewers and 44.6085 billion KRW in revenue. Eighth place was taken by 'Night Owl,' starring Yoo Hae-jin and Ryu Jun-yeol, with a cumulative audience of 3.222738 million and earnings of 31.76866 billion KRW.
'Jurassic World: Dominion,' seen by 2.837410 million viewers, ranked ninth with 29.23707 billion KRW in revenue. The tenth spot was held by 'The Witch Part 2: The Other One,' which attracted 2.806501 million viewers and earned 28.92248 billion KRW.
Premature Optimism is Dangerous; Structural Changes in Profit Model Needed
Although the number of theater visitors increased compared to last year, the 200 million viewer mark was not reached. The theater market, which shrank due to the COVID-19 pandemic, has yet to recover. Industry consensus is that this is not a temporary phenomenon.
An industry insider said, "From 2015 to 2019, the Korean film industry enjoyed a boom with a series of so-called '10 million viewer films,' and some directors even achieved '20 million viewer' status with two films or series. This led to active production and market growth." He added, "The industry expected the market, which shrank due to the pandemic, to recover last year, but it did not. It is more accurate to say the atmosphere itself has changed."
There is agreement in the industry that a full return to pre-COVID conditions is difficult. A production company representative said, "Households are financially strained, and audiences accustomed to OTT platforms will not easily return to theaters," but also predicted, "Good films still receive audience choice. That will continue this year."
What will the future theater look like? An insider said, "Investment has decreased, but actors’ fees are rising," with a bitter tone. He continued, "There is a possibility of concentration on blockbuster films with guaranteed box office success." However, he emphasized, "It is not guaranteed that big-budget films starring top actors will succeed. The market has become difficult to predict in terms of film success and audience preferences."
The insider also said, "Because film failures are more painful now, challenges will shrink," adding, "This is an era that requires clear planning." He stressed, "If money does not circulate, the market cannot grow. Fundamental changes in the profit structure are needed for the film industry to transform."
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