Frozen II in Korea

4 December 2019

This is a fascinating story, that just keeps getting better (and Hollywood Reporter is only scratching the surface here, unfortunately): an NGO in South Korea is suing Disney for "monopolizing" the movie screens of the country, because Frozen II is shown on 88% of all screens.

Now, South Korea has a rich and diverse number of movie theatres - they have the large cineplexes in big cities, but in the less populated areas they have many small theatres, often with a small number of screens (I reckon it is similar to the villages in Croatia, where there was only a single screen in the theater, and most movies were shown only once, and there were only one or two screenings per day, and not on every day). The theatres are often independent, so there is no central planning about which movies are being shown (and today, it rarely matters today how many copies of a movie are being made, as many projectors are digital and thus unlimited copies can be created on the fly - instead of waiting for the one copy to travel from one town to the next, which was the case in my childhood).

So how would you ensure that these independent movies don't show a movie too often? By having a centralized way that ensures that not too many screens show the same movie? (Preferably on the Blockchain, using an auction system?) Good luck with that, and allowing the local theatres to adapt their screenings to their audiences.

But as said, it gets better: the 88% number is being arrived at by counting how many of the screens in the country showed Frozen II on a given day. It doesn't mean that that screen was used solely for Frozen II! If the screen was used at noon for a showing of Frozen II, and at 10pm for a Korean horror movie, that screen counts for both. Which makes the percentage a pretty useless number if you want to show monopolistic dominance (also, because the numbers add up to far more than 100%). Again, remember that in small towns there is often a small number of screens, and they have to show several different movies on the same screen. If the ideas of the lawsuit would be enacted, you would need to keep off Frozen II from a certain number of screens! Which basically makes it impossible to allow kids and teens in less populated areas to participate in event movie-going such as Frozen II and trying to avoid spoilers in Social Media afterwards.

Now, if you look how many screenings, instead of screens, were occupied by Frozen II, the number drops down to 46% - which is still impressive, but far less dominant and monopolistic than the 88% cited above (and in fact below the 50% the Korean law requires to establish dominance).

And even more impressive: in the end it is up to the audience. And even though 'only' 46% of the screenings were on Frozen II, every single day since its release between 60% and 85% of all revenue was going to Frozen II. So one could argue that the theatres were actually underserving the audience (but then again, that's not how it really works, because screenings are usually in rooms with hundred or more seats, and they can be very differently filled - and showing a blockbuster three times with almost full capacity, and showing a less popular movie once with only a dozen or so tickets sold might still have served the local community better than only running the block buster).

I bet the NGO's goal is just to raise awareness about the dominance of the American entertainment industry, and for that, hey, it's certainly worth a shot! But would they really want to go back to a system where small local cinemas would not be able to show blockbusters for a long time, involving a complicated centralized planning component?

(Also, I wish there was a way to sign up for updates on a story, like this lawsuit. Let me know if anyone knows of such a system!)