Film industry's 'holdback' issue to be addressed by public-private body

South Korea's film industry is set to address the contentious issue of 'holdbacks' with the establishment of a new public-private consultative body. This initiative aims to revitalize a sluggish industry by re-evaluating the periods between theatrical releases and subsequent distribution on other platforms.

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The body was formed to normalize the distorted revenue structure of Korean films and foster a symbiotic ecosystem among distribution platforms, including cinemas and OTT services.

The Ministry of Culture, Sports and Tourism and the Korean Film Council (KOFIC) held the first meeting of the 'Public-Private Consultative Body for Improving Korean Film Distribution Structure' on May 29. The body was formed to normalize the distorted revenue structure of Korean films and foster a symbiotic ecosystem among distribution platforms, including cinemas and OTT services.

The primary focus of the initial meeting was the 'holdback' period, defined as the waiting time between a film's theatrical release and its availability on other markets. In recent years, a growing number of major films have moved to OTT platforms just one to two months after their cinema debut, leading to increased calls for restoring appropriate holdback durations. However, discussions have stalled due to differing interests among stakeholders.

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The first discussion topic was the 'holdback' issue. Holdback refers to the grace period between theatrical release and subsequent exhibition in ancillary markets.

The consultative body comprises 22 members, including representatives from the Ministry, KOFIC, cinemas, distributors, production companies, and TVOD and SVOD service providers. During the meeting, discussions centered on normalizing holdback periods, with the Ministry expressing its goal to build a sustainable ecosystem through voluntary industry consensus rather than regulatory measures like legislation.

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In recent years, a growing number of major films have moved to OTT platforms just one to two months after their cinema debut, leading to increased calls for restoring appropriate holdback durations.

The body plans to resolve disagreements and sign a 'Voluntary Agreement on Holdbacks for the Coexistence of Korean Cinema' by August. This approach emphasizes self-regulation within the industry to create a more stable and equitable environment for film distribution.

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The Ministry of Culture, Sports and Tourism aims to build a sustainable ecosystem through voluntary industry consensus rather than regulatory measures like legislation.