"You absolutely have to see this in a special theater"... The Survival Strategies Revealed in 'Odyssey'
The Theater Industry Is Restructuring from "Attendance" to "Average Revenue Per Customer"
Most of This Year’s Blockbuster Foreign Films Have High Average Ticket Prices
Attendance Fell, but Revenue Actually Increased
Premium Experiences Are Transforming Theater-Going Culture
Special Screenings and Repeat Viewings Emerge as Key Indicators of Success
Busy Reducing Low-Profit Stores and Strengthening Specialized Sections
[E-Daily Starin YUN GI BACK Reporter] This year, “revenue per viewer” and “spending in specialty theaters” are emerging as key box office indicators in the theater industry, on par with total attendance. Looking at the average revenue per viewer and the proportion of ticket sales from specialty theaters among the top-grossing films, there is a clear trend toward the theater industry shifting from a simple competition for audience numbers to a focus on premium viewing experiences.
A scene from the movie “The Martian,” which sparked an “IMAX” craze at movie theaters. (Photo courtesy of Universal Pictures) ◇A Closer Look at the Top 10 Box Office Hits… Foreign Blockbusters Have Higher “Average Revenue Per Attendee”
According to the Korean Film Council’s integrated computer network on the 9th, the average ticket price for “The Martian” (calculated by simply dividing cumulative box office revenue by cumulative attendance) is approximately 11,150 won. This is about 7% higher than the average per-ticket revenue of approximately 10,410 won for this year’s “Top 10 Box Office” films, and 15.6% higher than that of the top-grossing film, *The Man Who Lives with the King* (9,640 won).
Special screening formats played a significant role. For “Odyssey,” approximately 17.7% of the total audience—more than one in six—watched the film in IMAX, 4D (a four-dimensional movie screening system), ScreenX (multi-screen format), or Dolby Cinema.
This phenomenon is not limited to “The Odyssey.” Among this year’s “Top 10 Box Office” films, “Avatar: Fire and Ashes” and “Project Hail Mary” had average per-seat revenues of 12,180 won and 11,340 won, respectively—higher than that of “The Odyssey.” This is because, like “The Odyssey,” these films also saw high demand for special-format screenings. In fact, 39.3% of total revenue for “Avatar: Fire and Ash” and 19.9% for “Project Hail Mary” came from special screenings.
Thanks to these blockbuster films with high average ticket prices, revenue actually increased by 2.3% in the first half of this year, even though the number of foreign film viewers decreased by 6.9% compared to the same period last year. This was driven by revenue from special screenings, which reached 45.7 billion won during this period—a 56.3% increase year-over-year. This suggests that the traditional formula—where a decline in attendance directly leads to a decline in revenue—is weakening. It also offers insights for the Korean film industry, where low per-admit revenue means that even high attendance figures result in low overall revenue. (Graphic by Reporter Kim Il-hwan) An official from a film distribution company stated, “Recent hit foreign films operate on a model that boosts the amount spent per viewer not only through audience size but also through special screening venues and repeat viewings,” adding, “Going forward, we must consider average ticket price and the proportion of revenue from special screenings alongside total attendance as key indicators of box office success.”
◇ Reducing Low-Profit Locations and Strengthening Specialized Theaters… Audiences Also Traveling for Movies
The cinema industry is also bustling with efforts to increase average spending per patron by expanding specialty screens. The four major multiplex chains—CGV, Lotte Cinema, Megabox, and CineQ—are boldly reducing unprofitable locations while concentrating investments in specialty screens at key locations. CGV closed its locations in Pangyo, Daegu Academy, and Siheung this year. Lotte Cinema has also closed its Anyang and Hapjeong locations, and Megabox Dongdaemun will cease operations at the end of September. Posters for this year’s hit specialty-screen films: “The Odyssey” (from left), “Project Hail Mary,” and “Avatar: Fire and Ashes.” Investment in specialty theaters is being strengthened at locations undergoing renovations. CGV recently introduced 4DX and Dolby Atmos as part of a full renovation of its Yeouido location and upgraded the ScreenX facilities at its Yongsan I’Park Mall location. It has also opened new ScreenX theaters or renovated existing ones in Baegot, Incheon, Gimpo, and Uijeongbu.
This strategy of “selective focus” aligns with audience consumption patterns. This is because there is a growing demand for “long-distance movie-going”—where people travel to other areas to experience better picture and sound quality, even at higher prices than standard theaters. Kwon Young-san, a man in his 30s who watched *Odyssey* at the Megabox Namyangju Hyundai Outlet Dolby Cinema, said, “There are two movie theaters near my home, but since I wanted to watch it in the best possible conditions, I made the trip.” As demand grows for theaters with better viewing environments than nearby options, the audience draw and revenue per seat at specific key locations are likely to increase.
Kim, a pop culture critic, analyzed, “As multiplexes close low-profit locations while strengthening specialized theaters in key commercial districts and strategic locations, they are in the process of restructuring their revenue model,” adding, “Going forward, competitiveness will be determined not by the number of locations, but by how much each location can boost its customer traffic and average revenue per customer.”
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