The era of movie-less cinema is coming

Movie theaters are changing. If you’ve been to a movie theater recently, you may have enjoyed something other than a movie. You may have seen a live concert or watched a sports game. This change is not a temporary phenomenon, but rather a fundamental change in the movie theater industry.

For a long time, movies and movie theaters were inseparable. Movies met audiences through movie theaters, and movie theaters made money through movies. But now, this relationship is starting to crack. What’s interesting is that movies still need movie theaters, but movie theaters no longer want to rely solely on movies.

Behind these changes are rapid changes in the film industry and media environment. With the growth of streaming services such as Netflix, Watcha, and Tving, people have been able to easily watch various movies at home. The social distancing caused by the COVID-19 pandemic has further accelerated this trend. Accordingly, movie theaters have been looking for new strategies to survive.

The changes in movie theaters are appearing in various forms. The most noticeable one is the diversification of content. Now, in movie theaters, you can see not only movies, but also various contents such as concerts, sports games, and game competitions. A recent representative example of this change in Korea is the live concert film of singer Lim Young-woong, ‘Lim Young-woong | I’m Hero the Stadium’.

This movie had an amazing box office performance on its first day of release. It ranked second in terms of audience numbers with 49,000, but it ranked first in terms of sales with 1.42 billion won. This is because the ticket prices are much higher than regular movies. For 2D screenings, it is set at 25,000 won, and for IMAX, it is set at 35,000 won, which is 10,000 won more expensive than regular movies, but it is very popular, and there are cases of it being sold out without discounts.

Another change is the strengthening of premium experiences. They are expanding special theaters such as IMAX and 4DX, and strengthening additional services such as VIP lounges and high-end food services. This is a strategy to attract audiences by providing differentiated services that cannot be experienced at home. Furthermore, movie theaters are no longer simply movie theaters but are transforming into complex cultural spaces. In addition to watching movies, they are providing various cultural experiences and expanding related facilities such as cafes, restaurants, and shopping.

These changes are also having a big impact on the film industry. Film production companies are now moving away from a production method that only considers box office success and are increasingly producing films that are suitable for streaming services. Distribution strategies are also changing, such as increasing the strategy of simultaneous release (release in theaters and streaming at the same time) and shortening the period of theatrical release. However, these changes are not positive for everyone. In particular, small and medium-sized films such as independent films and art films are facing a crisis due to fewer opportunities to be screened.

How should the film industry respond to these changes? First, content diversification is necessary. Content production that suits various platforms is required, such as separately planning works optimized for theater screening and content for streaming services. In addition, new revenue models utilizing new technologies such as NFT and metaverse are also necessary. The role of the government and related organizations is also important. Policy support is needed, such as expanding support for diverse films and strengthening tax benefits for film production and distribution.

Films and cinemas must find ways to survive. This change in cinemas can be seen as an evolution for survival rather than a betrayal. The film industry must also adapt to these changes and find new ways. The relationship between the two industries is now evolving from a simple symbiosis to a complex relationship that sometimes competes and sometimes cooperates.

How will movies and movie theaters change in the future? And what kind of experiences will we have in these changes? This will be an interesting journey that we all have to watch and experience together. How about thinking about these changes every time you go to the movie theater? And share that experience with those around you. Our small interest and conversation can contribute to creating the future of movies and movie theaters.