[Focus] OTT Showed Confidence, Tasks Confirmed at Busan International Film Festival in the Film Industry

OTT Major New Releases Sold Out at Busan Film Festival
Netflix, TVING, Wavve, and Others Engage in Intense Promotion
Film Festival Reveals Precarious Reality of Film Industry

The online video service (OTT) content unveiled at this year’s Busan International Film Festival exuded confidence. Last year, major OTT companies including Netflix, TVING, and Wavve set up booths at the Busan Film Festival and put all their efforts into promotion. It was an unusual scene. Traditionally the domain of major film distributors, OTT companies rolled up their sleeves with determination. Meeting audiences during the day and holding large-scale events for film industry professionals at night was a striking sight.

A year later, this confidence was fully revealed. The momentum is fierce. This year at the Busan Film Festival, OTT new releases are prominently featured in prime screening slots, engaging audiences. Netflix films such as Dokjeon 2 (director Baek Gamdok) and Ballerina (director Lee Chung-hyun), TVING series Unsu Ojin Nal (director Pil Gamseong), and the Netflix documentary Norangmun: The End of Century Cinephile Diary are among the major upcoming releases that have drawn high local audience interest, selling out daily and creating a bustling atmosphere. The excitement of picketing (a combination of pick + ticketing) has shifted from theatrical films to OTT content.

The ticket booth at the 28th Busan International Film Festival
[Photo by Yonhap News]

Given the relatively few new films released in Busan this year, this is somewhat natural. Aside from Fast Lives (director Celine Song), co-produced by CJ ENM and the US company A24 starring Yoo Tae-oh, and Hwaran (director Kim Chang-hoon) starring Song Joong-ki and newcomer Hong Sa-bin, there are no notably outstanding new releases. Most upcoming films are invited to the festival, but many shelved films have yet to set release dates. This reflects the precarious atmosphere in the film industry.

Netflix premiered the films Ballerina (director Lee Chung-hyun) and Dokjeon 2 (director Baek Gamdok) in the 'Korean Cinema Today - Special Premiere' section at the Busan Film Festival. These works were highly anticipated, selling out daily. Leading actors such as Cha Seung-won, Jo Jin-woong, Han Hyo-joo, and Jeon Jong-seo met audiences through open talks and Q&A sessions.

Well-made OTT content evoked nostalgia for theaters. The Netflix documentary Norangmun: The End of Century Cinephile Diary, which captures the hopes of director Bong Joon-ho’s film comrades who shook the world with Parasite (2019), was invited to the Busan Film Festival’s 'Wide Angle - Documentary Showcase' section and met audiences. It received the warmest response among cinephile viewers. The actual Norangmun members sat in the audience and briefly greeted viewers after the screening.

TVING showcased three series. Unsu Ojin Nal (director Pil Gamseong), LTNS (directors Jeon Go-un and Im Dae-hyung), and Running Mate (director Han Jin-won) were screened in the 'On Screen' section, which features new OTT series. In particular, Unsu Ojin Nal sold out daily, heating up the early atmosphere. This thriller series follows an ordinary taxi driver who picks up a long-distance passenger offering a large sum, only to realize he is a serial killer, beginning a terrifying ride. Actors Lee Sung-min, Yoo Yeon-seok, and Lee Jung-eun actively promoted the series to Busan audiences.

Additionally, Disney+ premiered the original series Vigilante (director Choi Jeong-yeol) in the 'On Screen' section, and Wavve screened the original drama Georae.

Actors Yoo Yeon-seok (from the left), Lee Jung-eun, Lee Sung-min, and director Pil Gam-seong of 'Unsuojinnal'
[Photo by Yonhap News]

The crisis of theatrical films was clearly revealed at this year’s Busan Film Festival. There was talk that the 28th Busan Film Festival could not have been held without OTT works, highlighting their significance. The temperature difference between new theatrical films and OTT content was palpable. Like last year, OTT companies created promotional booths to generate interest and aggressively marketed with large advertisements on exterior walls. The term 'crisis' is not new, but it felt more intense because it seemed that OTT might no longer be the competitor for films.

This year, OTT showed great confidence. They boldly produced content and showcased it extensively in Busan, the country’s largest film festival. The major upcoming films, series, and even documentaries gave the impression of high quality. Above all, bold experimentation stood out. Even if some productions were somewhat lacking, such variations deserve applause.

Now, OTT may no longer be the competitor of theatrical films. Recently, theaters have been cold. Three Korean films released on September 27, ahead of Chuseok, targeted the golden holidays including Chuseok, National Foundation Day, and Hangul Day the following week, but none surpassed the break-even point. None gathered even 2 million cumulative viewers. The consensus is that this is because they were not considered 'fun.'

It is natural that people do not go to theaters when there is nothing worth watching. This year repeated familiar planning, predictable themes, and genres. Films planned and produced through outdated decision-making processes cannot be fresh. The argument that stable planning is necessary because the market is difficult is itself outdated. Audiences have turned their backs on such stable planning. This year’s Chuseok holiday theater attendance was nearly half of previous years. The result is more disappointing because there were many new releases.

Are they unaware of this, or are they pretending not to know? Just looking at the OTT content unveiled at this year’s Busan Film Festival, there is a reaction that the reason recent audiences have avoided films shown in theaters is understandable. It is not because they were fun. Most of the released content was not universally praised for quality and opinions were divided. Some works received particularly disappointing responses. However, these attempts and variations opened audiences’ eyes. OTT’s competitor is not theatrical films. In fact, comparing the two types of content has become meaningless.

Actors Cha Seung-won (left) and Jo Jin-woong from 'Believer 2'
[Photo by Yonhap News]

The film industry is experiencing a severe recession. Major domestic distributors have suffered enormous operating losses. This is natural since there is no revenue from theaters. This year, CJ ENM held a 'night event' together with its OTT TVING. Typically, night events at the Busan Film Festival introduce film investment and release lineups, competitively showcasing their strength. CJ ENM was the only domestic distributor to hold a night event but did not announce any lineup. This appears to reflect disappointing results and recent theater conditions. However, CJ ENM CEO Koo Chang-geun and CJ ENM Studios CEO Yoon Je-kyun both took the stage to say in unison, "Rumors that CJ is withdrawing from the film business are not true."

Theater audiences have drastically decreased, while OTT content with strong momentum spread their wings and soared at the film festival. This year’s Busan Film Festival reaffirmed the precarious atmosphere in the film industry. Voices of self-reflection also emerged. Industry insiders agreed that "people making theatrical films are trapped in past glories, repeating stable planning or stuck in outdated decision-making processes." It was an event that left many challenges to be addressed.