The Shifting Landscape of Korean Cinema: Holdbacks, Ticket Prices, and the Future of Moviegoing
South Korea’s cinema industry experienced a modest boost during the recent Lunar New Year holiday, driven by strong performances from Korean films like “The King and the Gentleman” and “HuminT.” However, the recovery remains incomplete, falling short of pre-pandemic levels. This has reignited debate around potential solutions, with the “holdback” system gaining traction as a possible remedy.
What is a Holdback and Why is it Being Considered?
A holdback refers to the delayed release of a film to alternative distribution channels, such as online streaming services (OTT) and IPTV. Currently, the discussion centers on implementing a six-month holdback period in South Korea, meaning films would remain exclusively in theaters for at least six months before becoming available online.
The rise of OTT platforms, particularly global giants like Netflix, has disrupted the traditional film distribution model. Films are increasingly bypassing lengthy theatrical runs in favor of immediate online availability, impacting cinema revenue and potentially stifling investment in new productions.
The Pros and Cons of a Holdback System
Proponents argue that a holdback would extend the theatrical window, allowing a wider audience to experience films on the big screen, especially independent and art-house films. It would also increase the film development fund, which receives 3% from ticket sales.
However, the proposal faces opposition from various stakeholders. Theaters fear being locked into a reliance on film releases, potentially being forced to screen less popular titles for extended periods. Film production and distribution companies express concerns about limiting their flexibility and revenue streams, particularly in a rapidly evolving market. They argue that a standardized holdback period doesn’t account for the diverse needs of different films.
Some suggest a modified approach, such as shorter holdback periods (3-4 months) or differentiated rules based on film genre, budget, and distribution strategy. France, for example, employs varying holdback periods, with longer durations for films facing competition from global streaming platforms.
The Ticket Price Dilemma: A Barrier to Entry?
Beyond the holdback debate, high ticket prices are a significant deterrent for many potential moviegoers. A recent survey revealed that 95.6% of respondents believe movie tickets are too expensive. 67.7% reported reducing their cinema visits due to cost, opting instead to wait for online releases.
The current pricing structure, coupled with telecom discounts that effectively subsidize tickets for some, creates a distorted market. Whereas discounts can bring prices down to 9,000-11,000 won, the standard price of 14,000-15,000 won for a weekend 2D showing is significantly higher than the cost of an OTT subscription (6,500-13,500 won).
Lowering ticket prices, potentially to around 11,000-12,000 won, could incentivize more people to return to theaters.
The Role of Public Cinemas and Structural Reform
The dominance of major multiplex chains – controlling over 98% of the market – limits pricing flexibility. Expanding the availability of public cinemas, like the Arirang Cinema Center in Seoul, which offers significantly lower ticket prices (4,000-7,000 won) and a diverse range of films, could provide a viable alternative.
These publicly supported cinemas demonstrate that affordable access to cinema is possible, attracting audiences who might otherwise choose to stream films at home.
FAQ
Q: What is a holdback period?
A: It’s the time a film is exclusively shown in theaters before being released on other platforms like streaming services.
Q: Why are ticket prices so high in South Korea?
A: A combination of factors, including limited competition among theaters and a complex pricing structure with telecom discounts.
Q: Could public cinemas be a solution?
A: Yes, they offer a more affordable option and can attract audiences who are priced out of multiplexes.
Q: What is the current status of the holdback legislation?
A: The Ministry of Culture, Sports and Tourism is pushing for mandatory holdbacks for films it supports, and several bills have been proposed in the National Assembly.
Did you grasp? The Arirang Cinema Center in Seoul offers movie tickets for as low as 4,000 won, making cinema accessible to a wider audience.
Pro Tip: Check for local cinema discounts and promotions to save money on your next movie outing.
The future of the Korean cinema industry hinges on finding a balance between supporting theatrical releases, embracing new distribution models, and ensuring affordability for audiences. Structural reforms, including increased competition among theaters and a re-evaluation of ticket pricing, are crucial for long-term sustainability.
