The global film market has taken a hit because of the continuing pandemic. The domestic market was no exception. According to KOFIC (Korean Film Council), last year, the total number of moviegoers decreased by 73.7 percent. Also, the number of views per person has dropped to 1.15. The actual releases of Korean films even dropped 17.1 percent to 165. In this situation, the over-the-top (OTT) media service market expanded.
OTT is a service that provides video media content such as movies and dramas over the Internet. The most representative services are Netflix, Watcha, Wavve, Tving, and Disney+. OTT services can provide contents anytime and anywhere, and its content is mainly for entertainment. Unlike the dangerous decline of theater, OTT influence is growing more and more. According to the Korea Communications Commission's investigation, the domestic OTT market has grown from 192.6 billion won in 2014 to 634.5 billion won in 2019 and 780.1 billion won in 2020.
Film distributors have begun releasing films on OTT platforms. Space Sweepers, directed by Cho Sung-hee, is a representative example. Space Sweepers was initially planning to be released in theaters, but it was released first on Netflix due to the extension of social distancing. Space Sweepers’ total production cost was 24 billion won including print and advertisement costs. It needed over 5.8 million viewers to pass its break-even point (BEP). Therefore, it is difficult to decide whether a movie will be released or not, when the possibility of reaching the BEP is not high. Deciding to release on OTT can be a reasonable option for movie distributors.
On the other hand, there are concerns about OTT releases. Although more consumers watch movies, unlike releases in theaters, producers, investors, and distributors cannot earn more money from releases on OTT platforms. So, experts are worried that it might become a matter of conflict since it can cause the collapse of existing supply systems. In these big waves of OTT service, to surf or drown is purely a film-maker’s responsibility. The appropriate balance is required.
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