Actor Choi Min-sik recently reignited the debate over movie ticket prices by appearing on a TV current affairs program and urging for a reduction in ticket costs. This has brought to the forefront a longstanding issue within the film industry. Theaters argue that raising ticket prices is unavoidable due to increasing operational costs, whereas production and investment companies stress the need for a profit structure that benefits the entire industry, not just theaters.

The steep rise in movie ticket prices has been frequently blamed for the declining number of cinema-goers. For instance, in 2013, a weekend movie ticket cost 10,000 won. However, since 2020, when the COVID-19 pandemic began, ticket prices have been rising by 1,000 won annually, reaching 15,000 won by 2022. Consequently, a family of three could spend nearly 50,000 won on movie tickets alone, excluding concessions like popcorn and drinks.

The film industry holds diverse perspectives on this issue. Theaters insist that their financial struggles, exacerbated by the prolonged slump during the pandemic, justify the price hikes. They point out that overall costs have surged over the past decade. Given their long-term lease agreements and rising fixed expenses, theaters claim they cannot afford to lower ticket prices.

The controversy over ticket prices is further complicated by the concept of “unit price,” which is calculated by dividing total ticket sales by the number of viewers. This represents the average price paid by viewers after discounts. According to data from the Korean Film Council, the unit price in the second quarter of this year was around 9,600 won.

The Producers Guild of Korea (PGK) and other critics have accused theaters of “black-box accounting.” They argue that although theaters have raised ticket prices since the pandemic, the actual profits for investment and distribution companies have not increased proportionally. After deducting the film development fund and value-added tax from ticket sales, theaters and investment/distribution companies typically split profits equally. This means that investment/distribution companies receive around 4,000 won per ticket—a figure that has remained stagnant despite higher ticket prices.

An official from a production company stated on October 1st, “If this profit-sharing ratio remains unchanged and average ticket prices do not increase, higher ticket prices will not benefit filmmakers. Additionally, if higher prices deter audiences from visiting theaters, profits will decline further.” If a film fails to break even, production companies may earn nothing, making it difficult to attract future investments. Investment and distribution companies would also bear losses, reducing their ability to reinvest in quality films.

Audiences often compare the value of online video streaming services (OTT) to movie theater experiences. For example, a Netflix subscription costs 13,500 won per month and offers unlimited content, whereas a single movie ticket at a theater costs 15,000 won. The growing preference for shorter content formats has also contributed to the decline in cinema attendance.

A domestic distributor cautiously noted, “Lowering ticket prices slightly could potentially boost viewership and improve profits. However, given current content consumption trends, we cannot guarantee this outcome.”

Popular culture critic Ha Jae-geun emphasized, “Movies are a form of mass entertainment, so it’s crucial to keep prices affordable for consumers. As living costs rise and financial burdens increase, leisure spending is often the first to be cut. It’s important to ensure that audiences feel they are getting their money’s worth when they go to the movies.”