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Research Article

Strategies for Revenue Enhancement in Secondary Markets for Korean Films Overseas

Kim, Mira1 · Kim, Hyejeon1

1 Seoul National University

Published: January 2007 · Vol. 36 No. 6 · pp. 1627-1652
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Abstract

This study was conducted to recognize the crisis in overseas exports of the Korean film industry and to improve the current revenue structure. Globally, the secondary market is three times the size of the theatrical exhibition market, and Korean films—classified as foreign-language films—have demonstrated particularly notable performance in this market. However, under the all-rights sales approach, it is difficult to generate revenues commensurate with such performance. Driven by this necessity, this study first provides an overview of the importance and potential of the secondary market to explain why entry into this market is essential, and then analyzes the major revenue models in the secondary market to derive implications for Korean films' overseas expansion strategies. Based on this analysis, the study proposes: first, revenue improvement strategies in terms of production and distribution centered on the video/DVD market; second, timing strategies through holdback shifts; and third, marketing strategies based on market selection. This ultimately signifies the direct entry of Korean films into the secondary market, which is essential from a long-term perspective in that it improves revenues for Korean films and leads to market expansion.
Keywords: 2차 시장부가시장수익개선직접배급한국영화