South Korean Cinema Faces Declining Foot Traffic as Streaming Gains Popularity

Seoul, South Korea – A recent survey reveals a concerning trend for South Korean cinemas: nearly half of moviegoers have reduced their visits over the past year, citing rising costs and the increasing appeal of streaming services. The findings, released by the Korean Film Council (KOFIC) earlier this month, underscore the challenges facing the theatrical film industry in a rapidly evolving entertainment landscape.

Decline in Cinema Visits

The KOFIC survey, conducted in October 2024 on 3,000 individuals aged 14 to 69 who regularly consume film content, found that 45.8% of respondents had decreased their trips to local theaters compared to the previous year. This decrease was categorized as “significant” by 16.5% of respondents and “moderate” by 29.3%. Conversely, 42.1% reported no significant change in their cinema attendance, while a smaller 12.1% indicated an increase.

Cost and Content Drive Shifts in Viewing Habits

Among those who reduced their cinema visits, the primary deterrent was cost, cited by 25.1% of respondents. A lack of compelling films currently showing in theaters (21.5%) and the expectation of future availability on streaming platforms (17.5%) likewise contributed significantly to the decline. The survey highlighted a disconnect between ticket prices and consumer expectations, with 41% of respondents considering a reasonable ticket price to be between 8,000 won ($5.50) and just under 10,000 won – considerably lower than the current average admission price of 14,000 to 15,000 won.

Streaming Services See Increased Usage

The survey data indicates a parallel rise in the adoption of streaming services. 45.9% of respondents reported increased usage of streaming platforms over the past year, while 41.6% maintained similar usage levels, and 12.6% experienced a decline.

OTT Platform Popularity

Netflix dominates the South Korean over-the-top (OTT) market, with 88% of respondents utilizing the platform. Coupang Play followed with 46.8%, while Tving (35.5%), Disney+ (26.5%), and Wavve (14.4%) also garnered significant usage. Respondents were permitted to select multiple platforms.

OTT as Primary Viewing Channel

For film viewers, OTT platforms have become the dominant channel, with 56.1% identifying them as their primary source. Television (25.3%), video-on-demand services (9%), and movie theaters (8.3%) trailed behind.

Factors Beyond Streaming

Interestingly, the KOFIC survey noted that the growth of OTT services isn’t the sole driver of declining theater attendance. Other contributing factors include rising costs, the limited effectiveness of government promotional policies, evolving leisure lifestyles, and the influence of film reviews on viewing choices.

Recommendations for the Film Industry

Based on these findings, the report recommends that the South Korean film industry develop more targeted promotional strategies, particularly offering incentives for price-sensitive family audiences. It also suggests exploring the implementation of a “holdback policy,” which would establish a mandatory period between a film’s theatrical release and its availability on streaming platforms. The Korean Film Council (KOFIC), a government-supported organization, aims to promote and support Korean films both domestically and internationally.

Key Takeaways

• Nearly half of South Korean moviegoers have reduced their cinema visits in the past year.
• Rising ticket costs and the availability of streaming services are major factors driving this trend.
• Netflix is the most popular streaming platform in South Korea.
• OTT platforms are now the primary channel for watching movies for over half of Korean film viewers.
• KOFIC recommends targeted promotions and a potential holdback policy to address the challenges facing the industry.