[Inside Chodong] Ineffective Screen Quota Undermines Special Theaters

IMAX

According to the 'COVID-19 Shock: 2020 Korean Film Industry Final Report' announced by the Korean Film Council on the 14th, the estimated box office revenue this year is 510.3 billion KRW. This is 73.3% less than last year's 1.914 trillion KRW. The spread of the novel coronavirus infection (COVID-19) caused a sharp decline in moviegoers. Even the number of film releases decreased, putting the industry at a crossroads of survival.

In fact, multiplexes closed eight locations this year and are not operating ten others. Two non-affiliated cinemas disappeared, and sixteen more shut down. Employment insecurity is also severe. The workforce was 15,409 in January before the COVID-19 outbreak. By last October, it had dropped to the 6,000 range. The number of employees on leave reached 1,455 in April alone.

This year, the only thing cinemas could do was to screen mid-to-large scale films for extended periods. They also suffered a double blow from competition with online video streaming services (OTT). The uncertain atmosphere may continue into next year. The following is an analysis from the report: "The subscription video on demand (SVOD) market is steadily growing. By 2024, it will generate twice the revenue of the box office. Changes in distribution platforms and adjustments among stakeholders within the industry are accelerating."

On the 7th, a day before the government’s implementation of raising the social distancing level to 2.5 in the Seoul metropolitan area, a movie theater in downtown Seoul is less crowded than usual. Photo by Mun Ho-nam munonam@

Cinemas still have the power to fight back. The large screen and magnificent sound, impossible to replicate on TV or OTT, are their strengths. These can be sufficiently competitive even during the COVID-19 situation. CGV’s blockbuster special exhibition at the Yongsan I'Park Mall IMAX theater, which started on the 7th, proves this. The seat occupancy rate for 'The Dark Knight (2008)' is an impressive 43.3% (including socially distanced seats, as of the 14th). 'Interstellar (2014)' and 'Dunkirk (2017)' also performed well with 39.0% and 35.6%, respectively. Considering that the overall seat occupancy rate in cinemas this month is just about 2%, this is a remarkable achievement.

Special theaters like IMAX must demonstrate their unique features to succeed, as their name suggests. All three films were shot with IMAX cameras. They are optimized for the Yongsan I'Park Mall IMAX theater, which upgraded its screen to the latest model last month.

Similar success stories have been found in other special theaters. CGV screened 'Harry Potter and the Sorcerer's Stone (2001)' in 4DX (4-dimensional experience) theaters nationwide from October 24 to November 13, 2018, attracting 256,954 viewers. The seat occupancy rate was as high as 53.9%. Another special theater, ScreenX (3-sided screening), enjoyed success with 'Bohemian Rhapsody (2018)'. From October 29, 2018, to April 21, 2019, it achieved a seat occupancy rate of 33.8%, drawing 926,510 viewers.

'Harry Potter and the Sorcerer's Stone' was able to vividly convey the magic in the film thanks to the motion chairs in the 4DX theater. 'Bohemian Rhapsody' combined with the multi-sided screens of ScreenX created an atmosphere akin to being at a concert hall.

Only a few Korean films can expect such effects due to limited dynamic camera movements or special effects. Films converted to IMAX are also rare. However, Korean films must be screened in special theaters for a certain period due to the screen quota system. Article 19 of the Act on the Promotion of Films and Video states that "the management of movie theaters must screen Korean films for at least one-fifth of the annual screening days from January 1 to December 31 each year."

Special theaters that fail to perform their functions are worse than regular theaters. For example, the motion chairs in 4DX theaters are not comfortable. The backrests are almost vertical and do not recline, making it uncomfortable to watch regular films. The seats are connected in groups of four, so if one viewer moves, the other three are affected.

The screen quota system has long lost its effectiveness. Korean films have recorded a viewer share of over 50% every year since 2011. This year, with Hollywood blockbusters subdued due to COVID-19, the share reached 68.6% (as of the 7th). Eight out of the top ten box office films were Korean. There are also significant differences between the theater environment in 2006, when the current screen quota system was implemented, and this year. Fourteen years ago, there were 321 theaters nationwide (1,880 screens). Now, there are 513 theaters (3,079 screens).

This content was produced with the assistance of AI translation services.