‘Crime City 3’ loses money on first night?”
Content Central, a content production company that has been releasing box office hits such as the drama “Dr. Cha Jung-sook” and the movie “Crime City 3,” is in the red. Despite the fact that the cumulative audience of “Crime City 3,” starring Ma Dong-seok, exceeded 6 million people, it is expected to lose over 20 billion won this year.
As Netflix has become the mainstream of the market, content companies such as Content Central, which distribute content through traditional channels such as movie theaters and broadcasting stations, are losing money.
According to an industry report on Sept. 9먹튀검증, Content Central is expected to post an operating loss of 22.8 billion won this year. Content Central received a lot of attention from the market for its co-production, investment, and distribution of “Crime City 3.
‘Crime City 3’ is doing well at the box office, exceeding 6 million viewers in a week after its release on the 31st of last month. Nevertheless, its performance is expected to continue to be in the red. The company is expected to post an operating loss of 4.2 billion won in the second quarter of this year alone.
The losses are also hurting its stock price. The stock is down 20 percent so far this year. “The slowdown in the advertising market due to the economic downturn, coupled with the growing competition from Netflix, is making things difficult,” said an industry insider.
As Netflix has become an increasingly common distribution channel for content, it’s harder to make money from movie theater box office alone. Production costs have also increased significantly.
An industry insider said, “As online video services (OTT) such as Netflix and YouTube have moved into the mainstream, expectations for traditional content outlets such as broadcasters and movie theaters have dropped significantly. Production costs have also increased significantly, making it harder and harder to make a profit,” he said, adding, “The Netflix phenomenon is pushing traditional content distributors into the red.”
The dramas “Dr. Cha” and “Bad Mother. [Content Central].
Content Central, which mainly supplied content through movie theaters and broadcasters, eventually raised the white flag. As the losses continued, the company is reportedly prioritizing sales to online video services (OTT) such as Netflix.
Movie theaters have also been hit hard by Netflix. While they seemed to be recovering after the pandemic, many people are now flocking to Netflix instead. As the losses continue to mount, movie theaters are saying, “We’re going to have to close,” “We’re doomed,” and “It’s worse than before the pandemic.”
CJ CGV, which owns the largest multiplex movie theater in Korea, posted a loss of 14.1 billion won in the first quarter of this year alone. Although the deficit has decreased, it has still been in the red for more than two years, contrary to expectations that it would recover after the coronavirus.