[아이뉴스24 이도영 기자] CJ CGV (CEO Heo Min-hoe), a multiplex chain, announced on the 18th that it will increase movie admission fees by 1,000 won from April 2.
CGV said, “With the aftermath of Corona 19, which has continued for more than a year, the domestic film industry is on the verge of testing, so we have increased theater fees to overcome the crisis. With CJ CGV’s increase in theater fees, multiplex theater chains such as Lotte Cinema and Megabox were predicted to reduce rates.
With this price increase, the movie admission fee will be adjusted to 13,000 won on weekdays and 14,000 won on weekends based on the normal time of 2D movies for adults. 3D, IMAX, 4DX, ScreenX, and other technology special halls and sweet box prices will also be increased by 1,000 won. The preferential rates applied to persons with disabilities or national merit are the same as before without an increase.
CGV said, “As of 2019, the structure of the Korean film industry was 76% of total sales from theater admissions. Considering that more than 50% of theater admissions is distributed to movie distribution, investment and production companies, now “It is a desperate situation that could lead to the collapse of the film industry as a whole,” he explained.
In fact, according to data released by the Film Promotion Committee on the 19th of last month, the total number of theater audiences in the country in 2020 reached the lowest level since 2004, when the operation of the integrated theater ticket network was started, and sales were also the lowest since 2005.
When comparing the number of audiences with 2019, before the outbreak of Corona 19, in 2020, it decreased by 73.7% compared to the previous year, and did not reach 60 million. As the aftermath of the third corona19 epidemic continues in 2021, the cumulative number of audiences from January to February declined 87.9% compared to 2019, and the amount of audience decline rather increased.
The situation at CGV is even more difficult. Last year, domestic sales reached KRW 325.8 billion and operating loss reached KRW 203.6 billion, making it the most difficult year since its inception. Following last year, CGV is carrying out desperate self-reliance efforts such as temporary retirement, temporary business suspension of some direct-managed stores, and voluntary unpaid leave, but is still struggling with deficit. This is because it is difficult to reduce fixed costs, such as rent and management fees, which the theater has to bear despite the decrease in audience, and the burden of quarantine expenses for safe viewing has also increased.
The company said, “Under the judgment that the entire film industry can survive even if the film is released even in a situation where the deficit continues, it will bear the financial burden, and in addition to the screening fee in February and March, an additional support for the release of 1,000 won per audience will be added to the distributor. “We are paying” he said.
He said, “CGV’s deficit is accumulating and the management burden is also increasing,” he said. “If the current difficulties persist, it is difficult to pay additional opening support funds.”
CGV decided to continue providing subsidies for the time being to promote the release of new films with increasing financial resources through this increase in movie admission fees. In addition, internally, the company plans to focus on establishing the basis for survival through business reorganization and cost reduction efforts.
/ Reporter Doyoung Lee ([email protected])