South Korea’s Film Industry at a Crossroads: Will a ‘Holdback’ Strategy Revive Cinema?
South Korea’s once-thriving film industry is grappling with a post-pandemic slump, prompting a heated debate over the implementation of a “holdback” system. This strategy, already adopted by several European nations, aims to create a window of exclusivity for theatrical releases before films become available on streaming platforms like Netflix. Recent comments from President Yoon Suk-yeol have thrust the issue into the national spotlight, raising questions about the future of Korean cinema and its ability to compete in a rapidly evolving entertainment landscape.
The Crisis in Korean Cinema: A Numbers Game
Before the COVID-19 pandemic, South Korea boasted an average of over 200 million annual cinema admissions. However, 2023 saw a precarious climb to just 106.08 million, barely surpassing the 100 million mark. The near-collapse was averted only by the success of foreign blockbusters like Wonka and Aquaman and the Lost Kingdom. This decline isn’t merely a temporary setback; it signals a deeper structural problem. Investment in local film production is dwindling as filmmakers increasingly opt for the guaranteed funding and creative freedom offered by OTT platforms.
The core issue? The immediate availability of films on streaming services undermines the incentive to visit cinemas. As President Yoon pointed out in his New Year’s press conference, the lack of a theatrical window makes it difficult to justify the cinema experience. Why pay for a ticket when the film will be accessible at home within weeks, or even days?
Holdback: How Does it Work and What’s the Proposed Model?
A holdback system, in its simplest form, mandates a period of exclusivity for theatrical releases. Currently, South Korea has no such regulation. The proposed amendment to the “Act on the Promotion of Film and Video” seeks to introduce a minimum six-month window between a film’s theatrical debut and its availability on OTT and IPTV services.
This approach mirrors successful models in Europe. France, for example, enforces a 36-month holdback period, although this can be reduced to 15-17 months if the OTT platform invests in French film production. The UK operates with a 7-25 month window, while Germany and Japan have holdback periods of one year and six months respectively. These countries have largely seen their film markets recover to pre-pandemic levels, suggesting a correlation between holdback policies and industry health.
The Potential Benefits: Revitalizing Investment and Protecting Cultural Identity
Proponents of the holdback system argue it will stimulate investment across the entire film value chain. CJ CGV’s Strategy Support Manager, Hwang Jae-hyun, believes it will create a more profitable ecosystem for film investors, producers, distributors, and exhibitors. A guaranteed theatrical window provides a predictable revenue stream, encouraging greater risk-taking and fostering a more diverse range of film projects.
Beyond economics, there’s a strong cultural argument. The fear is that without protection, the Korean film industry will become overly reliant on global OTT platforms, potentially leading to a decline in “Made in Korea” films that reflect local stories and perspectives. This concern echoes similar debates in other countries striving to preserve their cultural identity in the face of globalization.
Did you know? South Korea’s “Screen Quota” system, which mandated a certain number of days of domestic film screenings per year, was a landmark policy credited with nurturing the growth of the Korean film industry in the late 20th and early 21st centuries. The holdback debate represents a new chapter in this ongoing effort to protect and promote Korean cinema.
The Counterarguments: Consumer Choice and Independent Films
The holdback system isn’t without its critics. Concerns have been raised about potential infringements on consumer choice. Opponents argue that consumers should have the freedom to access films on the platform of their choosing, when they choose.
Another significant concern revolves around the impact on smaller, independent films. A longer theatrical window could make it more difficult for these films to recoup their production costs, particularly if they don’t achieve widespread box office success. The argument is that immediate OTT release provides a crucial revenue stream for these projects.
The Broader Trend: Global Strategies for Film Industry Survival
South Korea’s struggle is part of a global trend. Film industries worldwide are grappling with the disruption caused by streaming services. From France’s aggressive holdback policies to Canada’s tax incentives for theatrical releases, governments and industry stakeholders are exploring various strategies to ensure the survival of cinema. The key is finding a balance between protecting the interests of filmmakers and exhibitors, and providing consumers with access to content.
Pro Tip: Keep an eye on the evolving regulatory landscape in Europe. The European Union is currently reviewing its Audiovisual Media Services Directive, which could have significant implications for the future of film distribution and streaming.
FAQ: Holdback and the Future of Korean Film
- What is a ‘holdback’ period? A period of time between a film’s theatrical release and its availability on other platforms like streaming services.
- Why is South Korea considering a holdback system? To combat declining cinema attendance and protect the domestic film industry from the dominance of OTT platforms.
- What are the potential downsides of a holdback system? Concerns about consumer choice and the financial viability of smaller, independent films.
- Are other countries using holdback systems? Yes, France, the UK, Germany, and Japan are among the countries that have implemented holdback policies.
The debate surrounding the holdback system is far from over. The proposed amendment remains stalled in the National Assembly, and further discussion is needed to address the concerns of all stakeholders. However, one thing is clear: the future of South Korean cinema hinges on finding a sustainable model that can navigate the challenges of the streaming era and preserve the cultural vibrancy of its film industry.
Want to learn more? Explore our articles on the impact of streaming on independent film and global film industry trends.
Share your thoughts! Do you think a holdback system is the right solution for South Korea’s film industry? Leave a comment below.
