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Koreans Choose OTT Over Cinema as Ticket Prices Rise

Discover why 50% of Korean moviegoers are ditching theaters for OTT platforms like Netflix. Learn the key term 관람비 and latest trends.

#korean-news #cinema-trends #ott-platforms #korean-culture #economy

Summary

A recent report by the Korean Film Council (KOFIC) reveals a significant shift in how South Koreans consume movies. Nearly half of the surveyed population reported visiting the cinema less frequently over the past year compared to the previous period. High ticket prices were cited as the primary reason for this decline.

As theater attendance drops, Over-the-Top (OTT) platforms have become the dominant medium for film consumption. More than 56% of respondents now identify OTT services as their primary way of watching movies, while traditional theaters have fallen behind even TV channels and VOD services in terms of preference.

Financial data reflects this trend, with total theater revenue and audience numbers both seeing double-digit percentage drops. For the first time since 2012 (excluding the pandemic years of 2020-2021), the Korean film industry failed to produce a single "10-million-viewer" mega-hit.

The report suggests that the combination of post-pandemic price hikes and general inflation has transformed moviegoing from a casual hobby into a "selective expenditure." Many consumers now wait for films to arrive on streaming platforms rather than paying for a premium theater experience.

Full story (translated & rewritten)

The Korean Film Council's "Movie Content Consumption Trend Research" report paints a challenging picture for the domestic film industry. According to a survey of 3,000 individuals aged 14 to 69 conducted in October 2023, 45.8% of respondents said their theater visits had decreased compared to the prior year. Specifically, 16.5% said their attendance "decreased significantly," while 29.3% noted a "slight decrease."

When asked why they are visiting theaters less often, the most common answer (25.1%) was that ticket prices have become too burdensome. Other major factors included a perceived lack of interesting movies (21.5%), the abundance of quality series on OTT platforms (17.5%), and the fact that movies become available on VOD or streaming shortly after their theatrical release (17.4%).

There is a clear disconnect between consumer expectations and current market reality. While the average price for a standard movie ticket in Korea now ranges between 14,000 and 15,000 KRW, 41% of consumers believe the appropriate price should be between 8,000 and 10,000 KRW. This price gap is driving the migration to home viewing.

The dominance of OTT is now undeniable. 56.1% of movie consumers now use streaming as their main platform. In contrast, only 8.3% cited the theater as their primary venue, which is lower than TV channels (25.8%) and VOD replays (9.1%).

Last year, the total theater revenue in Korea fell by 12.4% to approximately 1.047 trillion KRW. The total number of moviegoers also dropped by 13.8% to 106.09 million. The lack of a "10-million-viewer" hit—a benchmark for massive cultural success in Korea—further contributed to the industry's stagnation.

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