Will Direct-to-Netflix Releases Be Classified as "Movies"? Amendment Proposed

Chung Yeonwook: "Legal Definition Remains Stuck in the Past"
Redefining Movies Based on the Nature of Content
Government Support Programs Still Limited to Theatrical Releases

Netflix Movie 'The Great Flood' Still Cut

Until now, movies released directly on platforms like Netflix or Disney+ have been legally classified as “online videos.” This is because outdated legal regulations, established more than 20 years ago, have failed to keep pace with the rapidly changing media environment. Now, it appears that this longstanding barrier will finally be removed.

On January 6, Assemblyman Chung Yeonwook of the People Power Party announced that he had sponsored a partial amendment to the “Act on the Promotion of Movies and Videos,” which includes works released through OTT platforms within the category of “movies.” The core of the amendment is a fundamental shift in the criteria for defining a movie. Under current law, a movie is defined as something “screened to the public in theaters or similar venues.” In other words, the standard has been “where it is shown.” The amendment changes this to focus on “what is shown”-that is, the nature of the content. Rather than the distribution method, the key will be whether the content, combining video and audio, possesses “narrative completeness.”

There have been ongoing criticisms that the law does not reflect reality. This is because works released directly through OTT platforms, without theatrical release, are now being invited to compete at major film festivals such as the Busan International Film Festival and are competing on equal footing with theatrical films. Reflecting this reality, the amendment paves the way for works provided through information and communications networks to be recognized as movies, as long as they are suitable for theatrical screening.

Netflix Movie 'The Great Flood' Still Cut

There are also safeguards in place to prevent indiscriminate expansion. Not every video uploaded to an OTT platform will be considered a movie. The definition is strictly limited to works intended for public viewing and with the potential for theatrical screening. In addition, to protect the foundation of the film industry, government support programs such as the Film Development Fund will still be limited to works produced for theatrical release. In other words, while the definition of a movie is broadened, the targets of industry support remain clearly specified.

Assemblyman Chung stated, “The public already naturally accepts works released on OTT platforms as movies, but the legal definition remains stuck in the past. This amendment will bring the legal system in line with the seismic shifts in distribution structure and serve as an opportunity to enhance the flexibility of the content industry.”