"Going to the movies costs 30,000 KRW (~22 USD) each time, but with that money, you can enjoy Netflix to your heart's content."
The summer blockbuster season at movie theaters has completely vanished. Outside of 'The Roundup: Punishment,' which drew 10 million viewers, films featuring top actors have sequentially flopped, making this summer a tough season for cinemas.
With the widespread adoption of online video services (OTT/streaming services) like Netflix, movie theaters are increasingly shutting down.
The film 'Wonderland,' with a star-studded cast of Tang Wei, Suzy, and Park Bo Gum, failed to attract even one million viewers and is on the verge of being pulled from theaters.
'Wonderland' generated buzz due to its stellar cast, including top stars from the Chinese-speaking regions, Tang Wei and Park Bo Gum, along with Suzy, Choi Woo Shik, Jung Yu Mi, and a special appearance by Gong Yoo. The film particularly gained attention as Suzy and Park Bo Gum teamed up as lovers for the first time, and rumors of their romance surfaced before the release.
Despite the buzz around the actors, the film struggled to reach even one million viewers, and most of the Korean movies released this summer are struggling financially and failing to break even. Blockbusters have nearly disappeared.
As theater audiences have drastically dwindled, more cinemas are closing their doors. CJ CGV, the operator of the largest multiplex chain in the country, has shut down its Wonju CGV branch and more recently, its CGV Nonhyeon location in Incheon. Similarly, Lotte Cinema plans to close its Dunsan branch in Daejeon.
A representative from CJ CGV stated, "The losses are so severe that we have no choice but to close."
'Daehan Theater,' a landmark cinema in Seoul's Chungmuro area, will also cease operations after 66 years due to continuous losses. The long-running theater will officially close on September 30.
The crisis facing cinemas stems from a significant decline in moviegoers. In just a few years, the total audience has shrunk to just 25% of its previous size. Even after the end of COVID-19, audiences have not returned.
The normalization of watching content through online video services like Netflix, coupled with the steep increase in movie ticket prices, is cited as a major reason. Ticket prices, previously between 8,000 to 10,000 KRW (5.75 to 7.20 USD), have risen to over 15,000 KRW (11 USD). Going to the cinema now means spending an average of 30,000 KRW (22 USD) per person on movie tickets and snacks. Many people think it's better to just stay home and watch Netflix instead.
Meanwhile, the number of domestic OTT (streaming) app installations has surpassed 30 million, making it a major media alternative to cinemas. While movie theaters continue to see declining audiences, Netflix's user base grows by millions each year.
Korean netizens commented:
"The movies are too expensive."
"I think it would be resolved if movie tickets were cheaper... I wonder why they don't decrease it."
"Wow, 'Wonderland' didn't even reach one million viewers at the box office... But movie tickets are so expensive that unless a film is really entertaining and gets good word of mouth, I tend not to bother watching. In the past, there was a joy in just going to the theaters and picking any movie that was released."
"If a person says the movie's not good then others won't pay money to go see it. But if tickets are cheaper, then they would just watch it (to form their own opinion) but now tickets are too expensive."
"I don't think it's Netflix's fault... If the movie is good, people are going to watch the movie regardless."
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