420,000 Viewers in Theaters... No. 1 Non-English Film on Netflix
Risk Greatly Reduced by Pre-Release Contracts
"A Survival Strategy Amid Recession"
Theaters Argue for Holdbacks... Ministry of Culture Left in a Dilemma
The film 'Bogota: Land of the Last Chance,' starring Song Joong-ki, which failed at the box office, is thriving on Netflix. According to distributor Plus M Entertainment on the 13th, it recorded 13 million views from the 3rd to the 9th, ranking first in the non-English film category on Netflix. In the combined ranking of English and non-English films, it placed second, following 'Pregnant? (25.1 million views).' The view count is calculated by dividing the total viewing time by the full running time. This metric was introduced to accurately gauge the popularity of films and mini-series with relatively short running times on Netflix.
'Bogota' is a crime film depicting the story of a boy named Guk-hee (Song Joong-ki) who heads to Bogota, Colombia, right after the 1997 International Monetary Fund (IMF) financial crisis and becomes entangled with influential figures in the local Korean community, Soo-young (Lee Hee-joon) and Sergeant Park (Kwon Hae-hyo). Released on December 31 last year, it attracted only 422,366 viewers in theaters and was then released on Netflix on the 4th of this month. The response on Netflix is worlds apart from that in theaters. It ranked first not only in South Korea but also in Colombia, the film's setting, and nine other countries, entering the top 10 in seventy-three countries. It received balanced interest across Southeast Asia, Europe, and South America.
Interest in 'Veteran 2,' which aired around the same time (January 28), was quite different. It was a box office hit with 7,525,339 viewers but received almost no attention on Netflix. It only garnered interest in South Korea and did not even appear in the non-English film category rankings.
There is a significant difference in how the two films are streamed. 'Veteran 2' is available only in Korean and English. In contrast, 'Bogota' is streamed in thirty-three languages, including German, Russian, Japanese, and Arabic, in addition to Korean and English. Regarding this, a Netflix representative said, "This is because it is introduced as an original film in all countries except South Korea." They added, "We cannot disclose specific details, but the contract structure is very different."
According to multiple sources, Netflix original film contracts have several prerequisites. A key element is the exclusion of holdbacks (a system that imposes a waiting period between a film's theatrical release and its distribution on IPTV, OTT, etc.). In fact, 'Bogota' ended its theatrical run on the 30th of last month and was released on Netflix three days later. On the other hand, 'Veteran 2' premiered on September 13 last year and was available as VOD on IPTV and other platforms on November 15 of the same year. It was only released on Netflix two months after that.
There have been previous cases following a similar procedure to 'Bogota.' Films such as '#Alive' starring Yoo Ah-in and Park Shin-hye, 'Tune in for Love' starring Kim Go-eun and Jung Hae-in, 'The Pirates: Goblin Flag' starring Kang Ha-neul and Han Hyo-joo, 'Dream' starring Park Seo-joon and Lee Ji-eun (IU), and 'Wonderland' starring Tang Wei and Suzy were introduced as Netflix original films outside Korea. A Netflix representative explained, "The timing and detailed structure of contracts vary."
Industry insiders say most contracts were signed before the films' theatrical releases. Distributors gave up revenue from IPTV, digital cable TV, Google Play, and other platforms before the films were evaluated by audiences. Netflix reportedly offered amounts that more than compensated for this.
Multiple distributors agree that contracting with online video services (OTT) first and then releasing films reduces risk. Industry insider A said, "The era of breaking even through theatrical releases is over. We are focusing on drastically reducing promotional and marketing costs and finding new avenues." Insider B added, "It is a survival strategy to endure the ongoing recession. We carefully consider which platform to send the film to after theaters to maximize effectiveness even before preparing for release."
Yoon In-chon, Minister of Culture, Sports and Tourism, is delivering a greeting at the "2025 Budget Support Related Film Industry Discussion" held last September at the Education Building of the National Museum of Modern and Contemporary Art in Jongno-gu, Seoul. Photo by Yonhap News
This trend undermines the argument for mandatory holdbacks in theaters. CGV CEO Heo Min-hoe stated at the '2025 Budget Support Film Industry Forum' in September last year, "Many viewers say they don't come to theaters because they can watch movies for free on OTT if they wait a little," and argued, "Even if the Ministry of Culture, Sports and Tourism provides budget support, holdbacks are necessary because films need to succeed for a virtuous cycle to occur." Megabox CEO Nam Yong-seok also explained, "Foreign filmmakers say they learn from Korea that the film ecosystem collapses without holdbacks," and added, "In France, where holdbacks are well established, the film industry has recovered to 90% of pre-COVID-19 levels."
Minister of Culture, Sports and Tourism Yoo In-chon expressed reluctance, saying, "We made great efforts to introduce holdbacks, but the stakeholders' opinions do not align." The gap may widen further due to the ongoing recession. An industry insider emphasized, "If there are few films breaking even like now, legislating holdbacks will become a shackle for distributors," and stressed, "We must actively seek avenues to maximize profits, including adjusting overseas rights fees as well as OTT." Another insider insisted, "If holdback legislation blocks distributors' survival strategies, the number of films produced will decrease even more," and urged, "It is time to think about directions that fit the new trends beyond the existing framework."
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