Legislation to Institutionalize Hold-Back System to Prevent OTT Release Just One Month After Theatrical Debut

Assemblywoman Lim Ohkyung Proposes Amendment to Film Promotion Act
Mandatory Hold-Back Period of Up to Six Months After Theatrical Release

Yonhap News Agency

There has been a growing trend of movies being released on online video services (OTT) shortly after their theatrical debut. In response, legislation to institutionalize the "hold-back" system is being promoted to protect the theater industry, which has been negatively affected by this trend.

On September 12, Assemblywoman Lim Ohkyung of the National Assembly's Culture, Sports and Tourism Committee announced that she had sponsored an amendment to the Promotion of the Motion Pictures and Video Products Act. The amendment stipulates that movies can only be supplied to other platforms, such as OTT services, up to six months after their theatrical run ends.

The hold-back system refers to the grace period between theatrical screenings and release on other media such as OTT or IPTV. Until now, this period has been determined by contracts between distributors and platforms. While art films or animations have sometimes been released quickly on IPTV, a period of six months to one year has generally been maintained.

However, during the COVID-19 pandemic, this period was drastically shortened. Major Korean films were released on OTT platforms such as Netflix and Disney+ within an average of four months, and some titles, like "The Roundup: Punishment," became available just one month after their theatrical release.

As a result, the film industry has argued that the number of theatergoers has plummeted because people can watch movies at home just a month or two after release without paying extra, which has also led to a contraction in the production environment.

Assemblywoman Lim stated, "The hold-back system is an essential mechanism for the mutual benefit of OTT platforms, theaters, and production companies," adding, "I will work to ensure that the system is established by reflecting the opinions of those in the field."