Competition: Hollywood Versus Domestic Films: Release Strategies of Hollywood Films in South Korea

Abstract

With a strong domestic film market in Korea, many foreign films are losing share, including Hollywood films that dominate the global market. In fact, Hollywood films that once dominated the Korean market with 70%–80% market share until 1998 witnessed a decrease in market share to 40% in 2005. Within 7 years, almost half of the Korean market share has decreased. The South Korean film market has been characterized by competition between domestic and Hollywood films where the combined market share exceeds 95% (KOFIC, 2005). What is the strategy of Hollywood films in competing with Korean films? What are some of the reasons why Hollywood films make up half of the top Korean market, whereas Korean films still face the challenge of reducing the huge gap between a blockbuster and failed films? This article examines the distribution strategy of Hollywood's major studios as witnessed recently in the Korean market based on the number of screens and the release date.