Its Optional Market is Growing Fast
The output and added value of the Korean film industry created at home both directly and indirectly in 2015 is estimated at USD 5.03 billion. According to a report ‘The Study of Competitiveness and Economic Impacts of Korean Film Industry’ released by
Korean Film Council (KOFIC) on December 1st, the number of local spectators and domestic film sales in 2015 were 217.29 million and USD 1.8 billion, respectively.
The report also says the power of the Korean cinema industry is significant in whole industries. The effect on production inducement and added value inducement effect of the industry were USD 3.6 billion and 1.4 billion, respectively. In addition, the employment inducement coefficient of the industry was 17.9, which is much higher than 8.4 of vehicle manufacturing industry and 6.4 of electronic electricity industry.
However, the economic impact of cinema exports is relatively less than that of the whole industry. Local movie exports generated USD 57 million worth of production and USD 22.5 million worth of added value. KOFIC figured out “It is because the general awareness of Korean films is not so high in overseas markets and competitiveness of domestic film content has its limit.”
Moreover, optional market of films has been growing fast in ten years. IPTV market increased from USD 42 million in 2010 to USD 220 million in 2015. But its percentage of the whole film industry is falling steadily from 40% in 2006 to 16.3% in 2015, since it has not met the growth of box office market in terms of the absolute scale.