Theater to OTT: Need to Find a New Standard for Box Office Success
Photo Source: New Vic Theatre
In the aftermath of Covid-19, the total number of people who visited the theater decreased dramatically. In case of South Korea, 73.7% decreased from the prior year. As a result of this predicament, new films have abandoned theater release in favor of OTT distribution. The film production firm was on the verge of bursting at the seams, as the release date could not be postponed. This year, Netflix will release original films like "Moral Sense" and "Carter," demonstrating that OTT is no longer a niche alternative. It's becoming increasingly difficult to speak about the film industry without mentioning it.
The criteria for judging box office success are evolving as a result of the inclusion of new film releasing mechanisms. Typically, movie theater screenings accounted for 70% of the profit structure, and most of them later earned 30% from supplementary copyrights (VOD services, etc. accounted for 30%). Breaking even was used to determine box office success in the case of theater screenings. However, because it is impossible to calculate accurate data for specific material, OTTs need a different methodology than film. Netflix should not, in theory, reveal the number of individuals who watched the movie after it was released.
Photo Source: The Sheist
"Space Sweepers" on the other hand, was an outlier, with outstanding outcomes. In a press statement last month, Netflix stated that "Space Sweepers" was watched by more than 26 million people around the world in the first 28 days of its release. In the case of "Space Sweepers" the number of viewers was released due to favorable responses, but the rest of the films were not released about the box office standards, so there is no way to measure them except for press releases written on Netflix. According to a movie source, "Netflix does not basically rank or line up works based on score views." "We don't disclose box office hits unless it's a particularly good job."
Currently, Netflix has paid the production business 5-10% of the entire film's production cost in order to get copyright. It is a tempting road for production businesses to go now that the movie theater is in a situation where the box office setback caused by Corona 19 persists. We cannot, however, expect 10 million movie titles, a large number of viewers, or increased earnings from box office hits. You'll have to make do with maintaining production expenses. "With this framework in place, production firms are likely to want to develop only works with high production costs in order to increase revenues even more," a movie official stated. "On the other hand, there are still stories of movies that aren't finishing, but are agonizing over series."
Article Source: https://n.news.naver.com/article/119/0002498684