The cast of "Parasite," which helped define CJ ENM's golden era in film, attends the Academy Awards ceremony in 2020. [Screen capture from social media]
The cast of "Parasite," which helped define CJ ENM's golden era in film, attends the Academy Awards ceremony in 2020. [Screen capture from social media]

'Time to exit the film business'

CJ ENM, the storied entertainment company behind blockbusters such as "Parasite," "The Admiral: Roaring Currents," "Extreme Job" and "Ode to My Father," cannot escape the red ink in its film division. The company has gone nearly four years without a meaningful box-office hit.

In the first half of this year, the drought deepened — not only did blockbusters fail to materialize, but the sheer number of releases dried up, sending the company's market share into a sharp decline. CJ ENM has fallen to last place among major distributors.

The company said its film and drama series division posted a loss of 10.5 billion won ($7.42 million) in the second quarter. While its OTT service Tving turned a profit and helped overall earnings meet market expectations, the film business alone tells a grim story.

The crisis has grown so severe that some shareholders have openly called for CJ ENM to exit the film business entirely.

According to the Korean Film Council, CJ ENM's cumulative box-office sales and admissions from January through May this year totaled 5.7 billion won and 610,000 moviegoers, respectively. Its market share stands at just 1.1 percent, placing it eighth — in effect last — among all distributors.

A still from "Eojjeol Suga Eopda" [Photo: CJ ENM]
A still from "Eojjeol Suga Eopda" [Photo: CJ ENM]

Aside from "30 Reasons Why You Shouldn't Quit Filmmaking," which opened in January, the company has had little else to show. Last year it distributed only two Korean films — "The Devil Moved In" and "Eojjeol Suga Eopda." "The Devil Moved In" drew a mere 390,000 moviegoers, far short of its break-even threshold of about 1.7 million admissions. "Eojjeol Suga Eopda," which had generated considerable anticipation, also fell short with only 2.94 million admissions.

The string of box-office failures prompted CJ ENM to replace the head of its film division.

The company said its new film chief "has a sharp eye for projects and extensive know-how from multiple successful productions" and pledged to "accelerate efforts to strengthen the film business's competitiveness and expand into global markets." Yet the division has still not pulled out of its worst stretch. Industry insiders say it will be difficult for CJ ENM's film business to recapture its former glory.

For the second half of this year, the company has only three self-produced films lined up: "Tazza: The Song of Beelzebub," "Silnakwon" and "Gukjesijang 2." CJ ENM appears set to focus less on theatrical performance and more on stabilizing its revenue model through pre-sales to OTT platforms such as Netflix.

CJ ENM headquarters [Photo: Yonhap]
CJ ENM headquarters [Photo: Yonhap]

As losses mount from consecutive box-office failures, CJ ENM has also been pulling back on film investment. Film and drama series account for roughly 30 percent of the company's sales and are supposed to be a core business — but the division has instead become a drag on growth. Despite the company's denials, speculation about a possible sale of the film business has begun to circulate.

Moviegoer numbers have been falling under pressure from OTT services, deepening skepticism about the viability of the theatrical film business.

A monthly OTT subscription now costs about as much as a single movie ticket. A trip to the movie theater runs an average of around 30,000 won per person once tickets and snacks are factored in. Many people find it more appealing to stay home and stream Netflix at their leisure.


park@heraldcorp.com