The Need for Legislation to Foster Collaboration Between Theatres and OTT Platforms

The Need for Legislation to Foster Collaboration Between Theatres and OTT Platforms

In recent years, the entertainment industry has witnessed a significant shift in the way content is consumed. The rise of Over-The-Top (OTT) platforms has revolutionized the way we watch movies and TV shows. However, this transformation has presented challenges for traditional theatres, leading to a need for collaboration between theatres and OTT platforms. This article explores the importance of legislation to foster such collaboration and highlights the common points raised by industry experts.

Kim, the creator of the popular Korean movie "서울의 봄" ("Spring in Seoul"), emphasizes the necessity of legislation to facilitate the collaboration between theatres and OTT platforms. He believes that achieving this is not as difficult as it may seem, given the government and parliament's interest in the matter. Through meaningful discussions between investment distribution associations and the OTT industry, practical solutions can be implemented to strike a balance that benefits both parties.

Kim further points out that compared to other countries like the United States and Canada, Korea's film industry has already experienced a significant breakdown of the holdback system. The majority of people have at least one OTT subscription, and the problem arises when they can access movies on these platforms within just a few weeks of their theatrical release. This undermines the financial viability of movie theatres and their ability to sustain themselves in the long run.

Examining the reasons behind the success of platforms like Naver and Watcha, it becomes evident that their global reach and diverse offerings, such as webtoons and online video streaming services, have played a crucial role. These platforms have effectively leveraged their existing infrastructure to expand their presence internationally. It is puzzling, then, why Kakao has not taken a similar approach. While Kakao has made significant strides in the global webtoon market, it has yet to expand its services beyond the domestic market. This raises questions about their strategy and potential missed opportunities for collaboration with OTT platforms.

One industry insider suggests that Kakao's limited engagement with the international market may be attributed to its primary focus on domestic services. Additionally, the fallout from last year's service disruption incident and the ongoing investigation into allegations of market manipulation during the SM Entertainment acquisition process have strained their relationship with regulatory authorities. These factors may have contributed to Kakao's reluctance to venture into the international market thus far.

Considering the insights from industry experts and the changing landscape of the entertainment industry, it is clear that collaboration between theatres and OTT platforms is crucial for the sustainability of both industries. To promote such collaboration, here are three actionable pieces of advice:

1. Foster open dialogue: The government, parliament, investment distribution associations, and OTT industry leaders should engage in meaningful discussions to find common ground and develop legislation that supports collaboration while protecting the interests of all stakeholders.

2. Encourage global expansion: Companies like Kakao should seize the opportunity to expand their services globally, leveraging their existing strengths and diversifying their offerings. This would help foster collaboration with OTT platforms on an international scale.

3. Cultivate trust and transparency: Companies operating in the entertainment industry should strive to maintain a good relationship with regulatory authorities. Trust and transparency are crucial in ensuring a conducive environment for collaboration and growth.

In conclusion, legislation plays a vital role in fostering collaboration between theatres and OTT platforms. By addressing the concerns of both industries and creating a supportive framework, the government can ensure the continued success and coexistence of traditional theatres and OTT platforms. This collaboration will ultimately benefit consumers, providing them with a diverse range of content and the flexibility to choose how and where they want to enjoy it.