A scene from the set of "Colony" [Official production image provided by Showbox]
A scene from the set of "Colony" [Official production image provided by Showbox]

"Colony," a film made with a 20 billion won ($13.6 million) budget, has moved to streaming platforms before its theatrical run has even ended.

The move — releasing on streaming while still playing in theaters — is highly unusual. "Colony" had drawn hopes of reaching 10 million admissions on the strength of its all-star cast and acclaimed director, but a slumping theater industry and a growing shift toward streaming have made that target all but unreachable.

Industry observers say the decision to go to streaming was an extraordinary step taken to maximize profitability.

According to industry sources, "Colony" became available Thursday on Coupang Play, Watcha, Wavve, Apple TV and other streaming platforms.

Released May 21, "Colony" is an action thriller set in a supertall skyscraper in downtown Seoul, where a mysterious mass infection breaks out. The film drew wide attention for bringing together a star-studded cast — including Jun Ji-hyun, Gong Yoo, Ji Chang-wook, Koo Kyo-hwan, Shin Hyun-bin and Kim Shin-rok — and director Yeon Sang-ho, known for blockbusters including "Train to Busan."

With 20 billion won behind it, the film had been seen as a genuine contender for 10 million admissions. Director Yeon even pledged to appear in zombie makeup if the film hit that milestone. As of Friday, however, it had drawn about 5.94 million admissions.

Official poster for "Colony" [Provided by Showbox]
Official poster for "Colony" [Provided by Showbox]

It has become increasingly common for films to move to streaming one to four months after their theatrical run ends. But making a title available on streaming before it has left theaters, as "Colony" has done, is a different matter entirely.

Among recent releases, "Wild Thing" and "Humint" both arrived on Netflix roughly two months after opening in theaters.

"Holy Night: Demon Hunters," starring Ma Dong-seok, made the move to Netflix within two months, while "Love in the Big City," led by Kim Go-eun, followed about four months after its theatrical release.

"Bogotá: City of the Lost," starring Song Joong-ki, was made with 12.5 billion won but managed only about 420,000 admissions — far below its break-even point of 3 million — and moved to Netflix within a month of opening.

In all those cases, the films had finished their theatrical runs before heading to streaming.

A still from "Colony" [Provided by Showbox]
A still from "Colony" [Provided by Showbox]

What sets "Colony" apart is that most films that moved quickly to streaming had failed to break even at the box office — whereas "Colony" performed relatively well by comparison.

Industry insiders say the film's producers opted to rapidly expand distribution channels to maximize returns, given that a theatrical windfall had become increasingly unlikely amid the slump in cinema attendance and the accelerating shift to streaming.

As part of that strategy, "Colony" rolled out simultaneously across a wide range of online and mobile platforms beyond streaming services — including IPTV, digital cable TV, satellite broadcasting and web hard drives.

Some in the industry say the film has introduced a new approach: securing revenue before audiences are counted, in order to lower the break-even threshold. "Colony" used advance overseas sales to bring its break-even admission target down from 5 million to 3 million.

Meanwhile, the growing concentration of content on streaming has kept the debate alive within the film industry over the "holdback" regime — the mandatory waiting period between a theatrical release and its availability on VOD or streaming.

Democratic Party of Korea lawmaker Im O-gyeong introduced legislation that would fix the minimum holdback period at up to six months after a film's theatrical opening, with the aim of protecting movie theaters.

The streaming industry has pushed back, arguing that flexible distribution structures are needed to protect viewers' access to content and strengthen the sector's competitiveness. Film producers and distributors have also expressed reluctance to adopt a mandatory holdback. A public-private consultative body has been formed to work out an agreement, and the industry expects a deal to emerge as early as next month.


sjpark@heraldcorp.com