A plan is underway to introduce a "holdback" system that would allow films to be released on other platforms such as online video services (OTT) or internet protocol TV (IPTV) only after they open in theaters, finish their runs, and several months have passed. Civic groups pushed back, saying consumer voices were excluded from the discussion process.
MINBYUN-Lawyers for a Democratic Society's Committee on People's Livelihood and Economy, People's Solidarity for Participatory Democracy (PSPD)'s Center for People's Livelihood and Hope, and the Ansan Council of Consumer Organizations said on the 21st they will hold a joint press conference of consumer and civic groups titled "Calling for solutions to the reduction of consumer choice due to the introduction of holdback and the issue of profiteering in ticket prices" at Areumdri Hall of PSPD in Jongno District, Seoul, on the 24th.
The Ministry of Culture, Sports and Tourism is expected to finalize an operational plan for the holdback system this month. Holdback refers to a grace period between a theatrical release and when a film moves to other platforms such as OTT. The push aims to protect theaters as the first window of film distribution and to maintain the industrial ecosystem of investment, production, and distribution. However, with OTT established as a major film distribution channel, critics say the regulation could weaken industry competitiveness and infringe on consumer choice.
Civic groups including MINBYUN's Committee on People's Livelihood and Economy said, "If a holdback system is introduced, consumers who have avoided theaters due to high ticket prices and have been watching films via OTT or IPTV will see their choices restricted for 150 days," adding, "With holdback, consumers will have to shoulder high ticket prices, and only theater revenue will increase."
They added, "The theaters' profiteering on movie ticket prices, the mobile carriers' deceptive discount marketing for movie tickets, and long-sought reforms by the film industry—such as normalizing per-customer spending and strengthening transparency in discount records—are not being addressed at all due to the passive stance of the Ministry of Culture, Sports and Tourism (MCST)."
The civic groups said, "The Ministry of Culture, Sports and Tourism (MCST) is pushing a voluntary agreement behind closed doors while excluding the voices of consumers whose choices will be restricted by the introduction of holdback," adding, "As for legal and institutional improvements to ensure transparency in opaque discount records, it is merely repeating irresponsible behavior by saying it will wait only for the Korea Fair Trade Commission's investigation results."