Before the pandemic, the Korean film industry had theater revenue accounting for approximately 80% of total sales. The remaining 20% of sales came from video, DVD, television broadcasting, exports, and other revenues. In other words, there were not many other channels for generating additional revenue in the Korean film industry other than theaters. Therefore, the screen monopoly phenomenon, in which if a certain movie occupies too many theaters during the peak season, the opportunities for other movies to be released are reduced, became an issue.
In this situation, Netflix, which appeared in the United States, had different impacts on the American and Korean video industries and cultures. Netflix, which was originally a DVD rental service by mail, switched to online streaming and competed with video and DVD sales and rental services and cable broadcasting in the United States. Therefore, in the United States, national video and DVD rental store chains collapsed, and a phenomenon called ‘cord cutting’, which involves canceling subscriptions to paid cable channels, emerged. Still, the film industry showing in theaters was maintained even after the pandemic.
![[노광우의시네마트랩] Netflix’s light and dark | Segye Ilbo](https://img.segye.com/content/image/2024/11/22/20241122500522.jpg "[노광우의시네마트랩] Netflix’s light and dark | Segye Ilbo")
In contrast, in Korea, where DVD rental services have already disappeared, a situation has arisen between Netflix and movie theaters. As can be seen in the case of ‘Victory’, some film companies did not incur significant losses by handing over the broadcasting rights to Netflix, but not many film companies responded so quickly. It was difficult for the film industry, which depended on profits from theaters, to actively invest and produce, and foreign international OTTs, including Netflix, emerged as major investors in Korean video content. In this way, a more advantageous situation has been created for content companies that produce not only movies but also OTT series. Due to these efforts, Korean content has rapidly spread around the world, but on the other hand, in the long run, handing over movie rights to Netflix for only the production cost and a portion of the profits means losing the opportunity to earn additional profits, so film production companies are reluctant to supply movies to Netflix. A sense of crisis arose that there was no choice but to remain in the position of a subcontractor.
As Netflix’s influence grew, interesting optical illusions arose in aspects other than the industry. Some foreign scholars who encountered Korean content through Netflix were seen adding Netflix next to the title of their work when presenting about Korean content at academic conferences, without mentioning the names of domestic platforms or broadcasting stations. Additionally, among domestic scholars, seeing that masterpieces of Korean films that were successful in the early 2000s are not yet available on Netflix, some scholars assumed that Korean films are not popular abroad or that Netflix is not interested in Korean films. This is a phenomenon that occurred because scholars made hasty conclusions without understanding information about theater box office or other sectors other than Netflix and OTT. However, as domestic and foreign scholars conduct more research in the future, information and knowledge about other sectors besides Netflix will increase.
Noh Gwang-woo, film critic
[ⓒ 세계일보 & Segye.com, 무단전재 및 재배포 금지]
**To what extent has Netflix’s arrival contributed to the diversification of Korean films produced for international audiences, both in terms of genre and thematic concerns?**
## World Today News Interview: The Netflix Effect on Korean Cinema
**Host:** Welcome to World Today News. Today we’re discussing the evolving landscape of Korean cinema in the age of streaming giants like Netflix. Joining us are two esteemed guests: Professor Lee Mi-ji, a leading media scholar specializing in Korean film and television industry, and Mr. Kim Joon-ho, a film producer with over a decade of experience working on both independent and studio productions. Welcome to both of you.
**Professor Lee:** It’s a pleasure to be here.
**Mr. Kim:** Thank you for having me.
**Host:** Let’s begin by understanding the pre-Netflix landscape of Korean cinema. Professor Lee, could you elaborate on how reliant the industry was on theatrical releases and the challenges this system presented?
**Professor Lee:**
**(Discussing the reliance on theatrical releases, the screen monopoly issue, and the lack of alternative revenue streams before Netflix’s arrival. Also, touch upon the limited reach and potential audience) **
**Host:** Mr. Kim, from a producer’s perspective, how did this dependence on theaters impact film financing and production decisions?
**Mr. Kim:**
**(Sharing insights into the budgetary constraints, risk aversion, and the focus on commercially viable storylines due to the reliance on box office success. Discussing the challenges of exploring unique narratives or genres) **
**Host:**
Now, let’s delve into the arrival of Netflix and its impact.
Professor Lee, how has Netflix’s model differed in Korea compared to the US, and what were the initial consequences for both the Korean film industry and its audience?
**Professor Lee:**
**(Comparing the impact of Netflix on the US and Korean video markets. Discussing the absence of DVD rentals in Korea and the initial reluctance of Korean film companies to partner with Netflix. Exploring the early successes and challenges of this shift) **
**Host:** Mr. Kim, you were producing films when Netflix started gaining traction in Korea. Can you share firsthand experiences of this transition? How did it influence your approach to filmmaking and distribution?
**Mr. Kim:**
**(Describing the initial uncertainty and adaptation process within the industry. Share personal anecdotes about deciding whether to release films theatrically, on Netflix, or through a hybrid model. Discussing the changing landscape of film financing and the growing role of OTT platforms) **
**Host:**
The article mentions a ‘sense of crisis’ among Korean filmmakers regarding relying solely on Netflix for distribution. Professor Lee, what are the long-term implications of this dependence on a foreign platform, and how can Korean filmmakers mitigate these risks?
**Professor Lee:**
**(Discussing the potential consequences of ceding control over distribution and revenue streams to Netflix. Analyzing the power dynamics involved and the risk of cultural homogenization. Suggesting strategies for Korean filmmakers to maintain independence and leverage
international platforms strategically) **
**Host:**
Mr. Kim, what steps are Korean filmmakers and production companies taking to address these concerns? Are there alternative models emerging for distribution and financing Korean films?
**Mr. Kim:**
**(
Providing insights into the collaborative efforts within the industry to explore alternative distribution channels, build independent platforms, and secure diverse funding sources. Discussing the potential of regional partnerships and co-productions to maintain creative control and expand global reach) **
**Host:**
the article touches on the issue of representation and misperceptions about Korean cinema internationally. Professor Lee, how can scholars and media professionals contribute to a more comprehensive understanding of Korean films beyond the lens of Netflix?
**Professor Lee:**
**(Highlighting the importance of academic research that explores the diversity of Korean cinema beyond commercially successful films available on global platforms. Advocating for a broader understanding of Korean film history, genres, and directorial voices. Encouraging cross-cultural dialog and collaboration to bridge knowledge gaps) **
**Host:** Thank you both for sharing your valuable insights and perspectives. This conversation highlights the complex and evolving relationship between Korean cinema and the rise of global streaming platforms.
As the landscape continues to transform, it’s crucial to champion both artistic innovation and sustainable business models that ensure the continued vibrancy of Korean film for generations to come.
