The Exodus of Audiences Triggered by a Drought of Blockbusters: "There's Nothing to Watch" [Theaters at a Crossroads]

Decline in Audience Numbers Due to Absence of Mega-Hits in Q1
'Mission' Expected to Drive Rebound and Support Theater Premiumization
"Disney Films, the Key to Recapturing Past Glory"

The primary reason for the decline in audience numbers is the absence of mega-hit films.

Movie 'Mission Impossible: Final Reckoning' Still Cut

According to the Korean Film Council, the number of moviegoers at theaters in the first quarter of this year was 20,818,006, a slight decrease from 23,931,150 during the same period last year. Compared to the period before the COVID-19 outbreak, this is less than half. In the first quarter of 2019, the number of moviegoers was 55,071,869, with 22,277,733 visiting theaters in February alone.

The only film to attract more than 3 million viewers was "Mickey 17" by director Bong Joonho, with 3,011,538 admissions. Only five films surpassed the 1 million mark: "Hitman 2" (2,547,448), "The Match" (1,892,922), "The Black Nuns" (1,670,555), and "Captain America: Brave New World" (1,654,145). All of these films merely broke even, failing to generate significant buzz.

The stagnant atmosphere may rebound in the second quarter. A series of highly anticipated releases are scheduled, including "Mission Impossible: Final Reckoning," "High Five," "Soju War," "How to Train Your Dragon," and "28 Years Later." In particular, "Mission Impossible: Final Reckoning" is seen as a key opportunity to improve theater performance, as it aligns well with the premiumization strategy that theaters are pursuing.

Mike Hickey, an analyst at Benchmark, cited "Mission Impossible: Final Reckoning" as the basis for AMC Entertainment's recovery. He predicted, "Starting with Mission Impossible: Final Reckoning in May, followed by 'Jurassic World: New Beginning' in July and 'Avatar: The Fire and Ash' in December, the theater industry could reach a new turning point."

Movie still cut from "Captain America: New Frontier"

However, relying solely on a handful of Hollywood blockbusters is not enough to sustain the entire theater industry. Only with a steady stream of high-quality films can theaters continuously attract audiences. In this regard, the company most in need of a rebound is Walt Disney. In the first quarter, Disney released "Captain America: New Frontier" and "Snow White," but these titles failed to garner much attention. This was identified as one of the main reasons for the global theater industry's sluggish performance. For AMC, revenue during this period was only $862.5 million, the lowest since 1996 except for the year affected by the COVID-19 pandemic.

Disney plans to release a variety of films within the year, including "Fantastic Four: New Beginning," "Lilo & Stitch," "Tron: Ares," "Elio," "Zootopia 2," and "Avatar: The Fire and Ash." However, Marvel Studios films have shown inconsistent results since "Avengers: Endgame," and live-action adaptations of animated films have often faced criticism rather than box office success.

According to one theater official, "Alternative values or lessons are important, but differentiated spectacle and entertainment must come first in order to recapture past glory." Another official stated, "Disney films are the key to effectively leading theaters' premiumization strategies," emphasizing that "the future of the theater industry will depend on what kinds of films are released going forward."