In the first half of this year, CJ ENM, which recorded single-digit market share in theaters, aims for a turnaround by showcasing renowned director Park Chan-wook in the second half. CJ ENM, which has incurred more than 160 billion won in operating losses in the film and drama business over the past three years, plans to recover its box office and content competitiveness centered around Park Chan-wook's new film.
There are also forecasts that the film industry could rebound as highly anticipated projects are set to be released in the second half of the year.
According to the integrated ticketing system statistics on the 24th, CJ ENM recorded a market share of 6.2% (2.62 million viewers) with the film 'Harbin' in the first half of this year. Last year, it held a market share of 3.9% in the same period, remaining in the lower ranks, but the film 'Veteran 2' surpassed 7.5 million viewers in the second half, increasing the market share to 12%.
Distributor Biphoem Studios recorded a market share of 13.4% (5.68 million viewers) with 'Hitman 2' and 'Victory' in the first half of the year, while Lotte Cultureworks, led by 'Mission: Impossible - Final Reckoning', followed with 11.9%.
Megabox Central and Next Entertainment World recorded market shares of 11.1% and 10.9%, respectively, with films such as 'Opposition Party' and 'High Five.'
CJ ENM has been struggling in the film and drama business recently. In 2022, the film and drama business recorded consolidated revenue of 1.4242 trillion won and operating profit of 7 billion won. However, the following year turned into a deficit with an operating loss of approximately 97.5 billion won, and last year it reported a revenue of 1.7046 trillion won with an operating loss of 41.2 billion won.
In the first half of this year, CJ ENM recorded consolidated revenue of 2.4511 trillion won and an operating profit of 29.3 billion won, but the film and drama business suffered an operating loss of 24.3 billion won. The film and drama sectors account for approximately 32% of CJ ENM's revenue, but they are currently seen as factors hindering growth.
Last year, dramas such as 'Retirement Age' and 'Lovely Runner' gained attention, but the performance in the film sector remains lackluster. The decrease in audience numbers and industry stagnation have been notable, and there have been few noteworthy films produced and distributed by CJ ENM.
CJ ENM has plans to seek a turnaround with films being released in the second half of the year. Director Park Chan-wook's upcoming film 'No Other Choice' is being highlighted as a key project.
'No Other Choice' is a film that director Park Chan-wook presents three years after 'Decision to Leave', based on the Donald Westlake novel 'The Ax'. It features top domestic actors such as Lee Byung-hun and Son Ye-jin.
The story follows a laid-off worker, Mansoo (played by Lee Byung-hun), preparing for reemployment while embarking on his own war to protect his family. It has been invited to compete in the 82nd Venice International Film Festival, which opens on the 27th. This marks the first time in 13 years for a South Korean film since the late director Kim Ki-duk's 'Pietà' in 2012.
The film 'Pretty Crazy', starring Im Yoon-a and Ahn Bo-hyun, is also among the projects that CJ ENM is looking forward to. It is a comedy about a jobless young man, Gil-gu (played by Ahn Bo-hyun), who becomes involved in a part-time job monitoring Sun-ji (played by Im Yoon-a), who wakes up as a demon every morning. Since its release on the 13th, it has surpassed 300,000 viewers.
An industry insider noted that the release of anticipated films such as 'No Other Choice' and 'People Upstairs', produced by the recently noteworthy distributor Biphoem Studio, could create a favorable wind in the second-half film market and stated that there could be an opportunity for CJ ENM to recover its performance depending on its lineup and production strategy for the second half.
Restoring the industry's ecosystem is also regarded as an important task. Film critic Song Seok-joo remarked, "Looking at recent releases, many are dependent on adaptations from webtoons and novels, but there is a strong tendency to consume only the popularity of the original works without properly implementing the unique interpretations and aesthetics of films," and added, "It is urgent to restore an industrial and institutional environment that can continuously uncover original scripts and foster experimental creation."