Proposed Six-Month Holdback Pits Korean Theaters Against Producers, Streamers
A proposed amendment in South Korea's National Assembly would mandate a six-month holdback period for films after their theatrical run ends before they can be released on OTT or IPTV platforms. While cinema chains support the bill as a survival measure, film producers, distributors, and independent film circles oppose it, arguing it would harm them financially and limit consumer access without addressing underlying issues. Critics point out that the bill lacks the corresponding production investment obligations required of platforms in similar French legislation.
Key Takeaways
- Theater chains argue the bill is a survival measure, prompted by films like 'Huminteu' appearing on Netflix less than two months after theatrical premiere.
- Opponents argue the real issues are seat monopolization and short theatrical runs, noting a Korean Film Council survey found short holdbacks were not a top reason audiences avoid theaters.
- Producers state that without post-theatrical revenue from OTT/IPTV, it's impossible to recoup costs, even with a theatrical run longer than two weeks.
- Critics note the bill mimics France’s 22-month holdback but omits the corresponding requirement for OTT platforms and broadcasters to invest in local film production.
Why It Matters
If passed, the bill would create a six-month content blackout period for new Korean films after their theatrical run, delaying producer revenue and disrupting content pipelines for local and global streamers. The proposal emulates France’s established windowing rules but notably omits the corresponding obligation for OTT platforms and broadcasters to invest in local film production. This key difference shifts the financial burden entirely onto producers and distributors, unlike the French system. The critical next step is whether legislators amend the bill to include mandatory OTT investment in production, which would address a central objection from the film industry.
Read full article at asiae.co.kr