[Cinema in Crisis③] 'Spiral Growth' Transition... Can Performance Screenings and Space Business Be the Breakthrough?

Transformation Strategies of the Three Major Multiplexes Utilizing Special Theaters like 4DX
Live Venue Atmosphere... Potential Confirmed in Lim Young-woong's Concert
Differentiated Climbing Experience Spaces... Also Football and Game Zones
Temporary Successes... Trend Changes and Investment Costs as Obstacles

Netflix began its video streaming service in 2007. Although it cannibalized its existing DVD rental business, the company deemed change inevitable. The rules of the game were completely altered in the new model. Previously, it was enough to purchase a variety of DVDs and rent them out to customers. Streaming services, however, were dozens of times more complex. It was difficult to secure a diverse range of movies due to challenges starting from purchasing licenses from production companies.

Netflix gradually distanced itself from its previous business model while maintaining the core of movie rentals. The driving force came from in-house production. Based on the extensive network built through the movie rental business, Netflix systematically pursued related company acquisitions, talent scouting, and securing production technology. The spiral growth that maintained its core while pursuing diversity fit together perfectly. Despite frequent clashes with other energies, it bent and twisted itself to leap higher.

Recently, the three major multiplex chains (CGV, Lotte Cinema, Megabox) are also focusing on spiral growth as they seek transformation. While maintaining their existing movie screening business, they are expanding into performance video production and space business. The former has already reached a settling stage. For example, CGV showcased 'BTS: Yet To Come In Cinema (92,539 attendees)', 'Coldplay Music of the Spheres: Live at River Plate (3,936 attendees)', and 'Kang Daniel: My Parade (5,486 attendees)' this year alone. These relied on editing existing footage and fandom, so they did not perform as well as regular movies at the box office. They also lacked the power to re-attract loyal fans who had already experienced the performances.

CGV fills the gaps by utilizing special theaters such as 4DX (multi-sensory experience theaters) and ScreenX (theaters with screens expanded to three sides). The plan is to provide a differentiated experience with a sense of presence comparable to that of a concert hall. They confirmed the potential with Lim Young-woong's 'I'm Hero The Final (257,020 attendees)', the highest-grossing live performance in the past three years. About 68% (approximately 170,000 people) of the audience watched it in ScreenX. On the 13th, CGV will present 'IU Concert: The Golden Hour' in IMAX, marking the first domestic live concert screening in IMAX.

This strategy has already been proven overseas. According to AMC, the largest movie theater chain in the U.S., Taylor Swift's tour live screening 'Eras Tour' earned $26 million (approximately 34.6 billion KRW) on the first day of ticket sales alone on the 1st (local time). Within less than three hours of sales starting, it surpassed the previous record of $16.9 million (approximately 22.5 billion KRW) set by 'Spider-Man: No Way Home (2021)'. The most popular screening format was IMAX, with tickets for about 250 theaters selling out early. Amid the simultaneous months-long strikes by Hollywood's two major unions, the Writers Guild of America (WGA) and the Screen Actors Guild?American Federation of Television and Radio Artists (SAG-AFTRA), which have reduced the number of releases in the second half of this year, this brought significant vitality to the cinema industry.

CGV is focusing on overseas distribution, inspired by limited domestic demand and the K-pop craze. 'IU Concert: The Golden Hour' will be released in thirty-eight countries including the U.S., Japan, and Germany. A CGV official said, "Last year, the highest-grossing Korean film in Indonesia was 'NCT Dream The Movie: In A Dream,'" adding, "We are also planning live concert broadcasts through a relay system built on overseas corporate sites."

The other breakthrough found by multiplexes, the space business, is unfolding in line with trends and experiences. The most successfully established space is CGV's climbing gym 'Pickers.' Starting with the Piccadilly 1958 branch, which was converted from theaters 7 and 8 into a climbing gym, additional locations have been set up in Guro and Sinchon branches. All are generating net profits, and there are plans to add another location in Seoul within the year. A CGV official explained, "The cumulative number of users has exceeded 150,000," adding, "It is popular not only among climbing enthusiasts but also as an experiential learning site for students. There has been an increase in group visits from schools, companies, and institutions."

The characteristics of the climbing gym have contributed to the evolution into a stable model. Each climbing wall requires different skills and difficulty levels. The hold positions are regularly changed and courses varied to provide a fresh experience. Former athletes and experts directly arrange the holds to minimize boredom and monotony. Kim Young-jin, head of Hook Climbing, which operates Pickers, said, "Each climbing wall is equipped with CCTV, and a safety officer is stationed on-site to ensure safe climbing."

Besides this, multiplexes are attempting changes with various spaces such as golf studios, mini soccer fields, comic cafes, immersive game centers, exhibitions, creator studios, and flagship stores. Most of these remain temporary achievements or one-off events, facing difficulties in expansion. They are considered to have low stability and effectiveness due to rapid trend changes and high investment costs.

A cinema industry insider, Mr. A, said, "In fact, some projects were scrapped before even being concretized," hinting, "Generally, the demand was insufficient or the content was difficult to sustain long-term." He also pointed out, "There is no suitable link to induce cinema viewers to use the space business or vice versa." Another cinema industry insider, Mr. B, forecasted, "There are no notable success cases overseas either. They probably concluded that focusing on screenings individually is better," adding, "It seems difficult to establish a foothold within a few years."