“Netflix,” “Disney Plus,” and “Coupang Play,” these are all over-the-top (OTT) streaming services which enable consumers to watch whatever they want, whenever they want, wherever they want and on any device they want. With its convenient attribute of enabling consumers to watch works of endless genres, from movies, dramas, documentaries, and animations, currently six out of ten Koreans have subscribed to at least one OTT service. The rise of these OTT services has been accelerating since the COVID-19 pandemic when the movie industry closed temporarily. For the reopened movie industry, these OTT services pose a new threat.

    Although audience numbers have shown signs of recovery as the pandemic has ended, the numbers fall short when compared to before. The main reasons behind the movie industry’s downfall are the ticket costs’ rise and OTT services’ growth. The movie theater used to be the main source of content consumption before the pandemic. However, the pandemic along with social distancing has made it difficult for people to go to theaters, and film companies started to release their content releases on OTT platforms instead of the theaters. Consumers are less inclined to visit the theaters, when they can wait a couple of months and watch those movies at home lying on their couch. Considering that movie ticket prices were around 7,000 to 8,000 KRW back in 2018, the current movie ticket cost which is over 14,000 KRW gives consumers a greater reason to opt for OTT services.

    What can be done to bring back the consumers? The most urgent measure at this point is to reconstruct the cinema into a cultural space where the audience feel free to visit anytime. Theaters should take advantage of their strength that differentiates themselves from OTT services: they can provide a comfortable cultural space and create a valid reason for consumers to go to the theaters to watch movies instead of streaming on OTT services. For now, at least, there are still more people with fond memories of watching movies and snacking on popcorn at theaters. Movie theaters hold special memories for most people, not only as a place we went to see our favorite movies, but also as a place we had our first dates, or laughed and cried together with the audience. If the movie industry wishes to return to its former glory days, they must take serious action before it is too late.