The Truth Behind CGV Ticket Price Increase

From the 4th, raised by 1,000 won to 14,000 won... third increase in 2 years
COVID-19 operating loss 366.8 billion won, minimal government support... as a self-help measure
Movie ticket price increase is a global trend... still cheaper than advanced countries abroad

Seoul CGV Yongsan I'Park Mall / Photo by Moon Honam munonam@

CGV will raise movie ticket prices by 1,000 won starting from the 4th. For adult 2D movies, the price will be 14,000 won on weekdays and 15,000 won on weekends. Special theaters such as IMAX, 4DX, and ScreenX will see a 2,000 won increase.

Companies that raise prices for products and services hope to transform into a high-profit structure. They expect to be freed from financial pressure and to have more internal flexibility. However, CGV's case is different. Over the past two years, its domestic operating losses have reached 366.8 billion won. The entire film industry was shaken by the spread of COVID-19. According to the settlement data recently announced by the Korean Film Council, last year’s domestic film industry revenue was 1.0239 trillion won, which is about 40% of the 2.5093 trillion won recorded in 2019. Movie theater revenue (584.5 billion won) shrank even further to about 30% of that level.

CGV has already raised movie ticket prices twice in the past two years. A CGV official explained, "It was an unavoidable measure," adding, "The accumulation of deficits has intensified the management crisis. The entire film industry no longer has the strength to endure." They claim to have taken responsibility for the entire film industry. In fact, half of the increased ticket price is returned to distributors and producers according to the revenue-sharing rate. Several film industry insiders predicted, "Many commercial films with large production costs may consider releasing within the year." The number is said to be about seventy films.

Last year, the estimated profitability of domestic commercial films was minus 50%. The burden passed on to viewers is partly due to the government's minimal support. Unlike the US, UK, and France, there was virtually no direct support for movie theaters. The multiple rounds of consumer discount coupons issued were focused on enhancing the public’s cultural enjoyment, and release support was more of an additional concept. It could not be more effective than self-help measures such as multiplex support for producers. Screening official A lamented, "The government did not propose any financial policies but only demanded restrictions on business hours, social distancing, and bans on eating and drinking, which triggered operating losses."

Seoul CGV Yongsan I'Park Mall / Photo by Jang Jin-hyeong aymsdream@

Even with the increased ticket prices, movie tickets are still relatively cheaper than in advanced overseas countries. In the US, ticket prices vary widely depending on the region or multiplex chain. In New York, weekday adult 2D movie tickets range from $21.49 (AMC 84th Street, 26,009 won) to $15 (iPic Enter, 18,154 won). Regal, the second-largest multiplex chain locally, charges $17.40 (21,052 won) at Union Square, $18.10 (21,902 won) at Essex Crossing, and $17.15 (20,753 won) at E-Walk. The largest operator, AMC, has been charging an additional $1 (1,210 won) to $1.5 (1,815 won) for tentpole movies since last month.

Multiplex chains in Japan such as Aeon and Toho charge 1,800 yen (17,832 won) to 1,900 yen (18,831 won, excluding tax) for tickets. Special theaters like IMAX and 4DX are about 1,000 yen (9,910 won) more expensive. Cineworld in the UK raised average ticket prices by about 40% when it resumed operations last year.

India’s PVR also raised ticket prices by 50% in Telangana state last December. Ajay Bijli, chairman of PVR, said, "There is no doubt that the cinema industry was severely hit by the COVID-19 pandemic," adding, "Scaling up for efficiency is very important for the long-term survival of this industry and the fight against the fierce attack from over-the-top (OTT) services." Screening official B said, "Due to the high fixed costs such as rent and management fees, it is difficult for movie theaters to find appropriate self-help measures other than price increases."

Recently, movie theaters have taken on an additional burden. As competition with OTT intensifies, they are required to offer differentiated viewing conditions. Despite recording losses for 25 consecutive months since February 2020, CGV resumed facility investments last year. They introduced laser projectors and replaced sound systems in dozens of theaters. A CGV official pledged, "We will enhance viewer satisfaction by providing various services such as creating the optimal viewing environment, introducing reservation start notifications, and strengthening membership benefits."

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