Is 'Hope's' Break-Even Point a Rubber Band? Why the 3.5 Million vs. 7 Million Fiasco?
Investment Firm Causes Correction Frenzy After Announcing "Break-Even Point Reached"
Distributor: "We Have Never Disclosed Production Costs or the Break-Even Point"
[Edaily Starin Choi Hee-jae Reporter] A mix-up has arisen regarding the break-even point (BEP) for “Hope,” the biggest Korean film production in history with a budget of 50 billion won (industry estimate). The investment firm claimed the film had surpassed its break-even point, citing the success of overseas pre-sales, which only added to the confusion within the industry. A scene from the movie “Hope” (Photo courtesy of Plus M Entertainment) On the morning of the 27th, Episode Company, an investor in the film “Hope,” distributed a press release titled “‘Hope’ Has Surpassed the Break-Even Point… Attention on the Relay of Pre-Investment Box Office Successes.” However, approximately 1 hour and 30 minutes after the release, they issued a correction. The initial press release sent by the investment firm stated, “Having passed the halfway point in its box office run, the film is on the verge of entering the profit zone,” and “It has reached a decisive turning point in securing profitability.” It also added that, given the box office momentum of “Hope”—which is on the verge of reaching a cumulative audience of 3.5 million (as of the 27th)—the project is expected to receive a green light for investment. The investment firm stated, “Thanks to the success of aggressive overseas pre-sales conducted prior to the release of ‘Hope,’ the domestic break-even point has been lowered.” According to industry estimates, the break-even point for “Hope” is known to be around 7 million viewers. However, based solely on the title and content of the press release sent by the investment firm, it was easy to misinterpret the break-even point as 3.5 million—roughly half that figure. As controversy arose, the investment firm corrected the title to “Surpassed the Midpoint of the Break-Even Point” and redistributed the press release. However, by then, the incorrect information that “Hope has already surpassed the break-even point” had already spread across major online communities and social media platforms. An official from Episode Company told Edaily on the 27th, “We did not set the break-even point at 3.5 million,” adding, “That was not our intention, but we apologize for causing confusion.” The most flustered party is the distributor, Plus M Entertainment. A Plus M representative stated, “We had not received any information regarding this from the investment firm in advance,” and emphasized, “We have never officially disclosed the break-even point or production costs.” In response, some moviegoers and netizens voiced various reactions, such as, “Is the break-even point elastic?” “Isn’t this just PR spin from the investors?” and “It seems they’ve actually surpassed the midpoint of the break-even point.” A scene from the film “Hope” (Photo courtesy of Plus M Entertainment) According to industry sources, the net production cost of “Hope” is approximately 50 billion won, making it the largest in Korean film history. While the film mitigated initial risks by pre-selling rights to over 200 countries and regions worldwide at prices among the highest ever for a Korean film, the industry views its initial theatrical break-even point as having been set high—a figure befitting the title of “highest production cost ever.” Analysts suggest that the pressure to succeed—a burden inherent in a “50-billion-won blockbuster”—lies behind the investment company’s decision to issue a corrected press release just an hour and a half after the initial announcement. This is because the box office momentum of *Hope*—which set the record for the fastest-selling film of the year by surpassing 2 million viewers in just five days—is gradually slowing down, and the film is also facing the upcoming release of strong competitors, such as the new *Spider-Man* series and director Christopher Nolan’s latest film, *The Odyssey*. A film industry insider noted, “The break-even point can vary depending on overseas pre-sales, revenue settlement timelines, and ancillary income,” but added, “However, the investment company’s premature mention of surpassing the break-even point at this stage is bound to cause unnecessary misunderstandings in the market.” Another insider added, “It seems the investment company got out of sync by making overly optimistic claims about box office performance just as the film was reaching its midpoint.”
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