[Edaily Starin YUN GI BACK Reporter] The voluntary agreement on movie holdback periods (the grace period before a film is released on other platforms following its theatrical run), scheduled to be announced this month by the Ministry of Culture, Sports and Tourism, is facing last-minute difficulties. This comes as consumer and civic groups have joined the production and distribution industries in publicly opposing the measure. Despite being labeled a “voluntary” agreement, questions are mounting as to whether sufficient consultation took place with the stakeholders who will actually be affected.

The People’s Lawyers Association’s Committee on People’s Livelihood and Economy, the Ansan Consumer Organizations Council, and the People’s Solidarity for Participatory Democracy’s Center for People’s Livelihood and Hope held a press conference on the 24th, urging, “Stop the backroom ‘holdback’ agreement that excludes consumers’ voices.” They also demanded that consumer and civic groups be included as parties to the agreement.
The “holdback” currently under discussion is a proposal to impose a minimum 150-day waiting period before movies released in theaters become available on online video services (OTT). The intent is to revitalize the stagnant film industry by encouraging audiences to watch movies in theaters.
However, the controversy extends beyond the mere figure of “150 days.” The core issue is whether there has been sufficient discussion regarding who this system is intended to benefit and who will bear the burden in the process.
Lee Hwa-bae, CEO of the Distribution Companies Alliance, pointed out at a press conference that day, “The current direction of holdback adjustments risks causing revenue losses for production and distribution companies and limiting audience choice.” He added, “While we agree with the goal of fostering the future development of Korean cinema, restricting sales in the online market without alternatives to compensate for losses will place yet another burden on production and distribution companies that are already struggling.”
The production and distribution industries are particularly concerned that a one-size-fits-all holdback policy could delay the recovery of funds for small- and medium-sized films. This is because if the OTT release is delayed even for films that did not receive sufficient screening opportunities in theaters, it could disrupt the recovery of investment through subsequent rights sales. Critics point out that since the box office performance and distribution strategies vary from film to film, it is questionable whether applying a uniform standard is appropriate.
Added to this is consumer backlash. From the perspective of audiences who have opted for OTT or Internet Protocol Television (IPTV) over theaters due to the high cost of tickets, the holdback effectively restricts one of their options for a certain period. Civic groups point out that if OTT releases are delayed without improvements to theater ticket prices and revenue-sharing structures, the burden could be passed on to consumers.
Whether the holdback will actually lead to an increase in theater attendance is also a point of contention. Analysts suggest that the decline in theater attendance stems from a combination of factors—including not only the rapid release of content on OTT platforms but also rising ticket prices, the competitiveness of content, and changing viewing habits. Consequently, opinions are divided on whether simply delaying OTT releases will be sufficient to achieve the goal of revitalizing the film industry.
Within the industry, there is consensus on the need to establish a proper distribution order among theaters, production and distribution companies, and OTT platforms through a certain level of holdback. However, since this is a “voluntary agreement,” some point out that the opinions of a broad range of stakeholders must be gathered before implementing the system.
A film industry official stated, “Discussing the necessity of a holdback period and applying the same standard to all films are separate issues,” adding, “Given that the interests of not only production and distribution companies but also theaters, platforms, and consumers are intertwined, it is more important to reach an effective agreement through sufficient consultation than to simply set a release date.”