CGV offers a diverse range of premium format content as the global box office rebounds.
A Promising Turn of Movie Theater Business
The movie theater business is evolving. In July 2023 alone, the global box office hit $4.54 billion. It was “the single highest grossing month since before the pandemic began” (Gower Street Analytics). CJ CGV, South Korea’s largest multiplex cinema chain and one of the world’s top ten cinema exhibitors, swung back to an operating profit in the first half of this year for the first time since the pandemic.
In the US, the box office hits duo <Barbie> and <Oppenheimer> led to the resurgence of the movie theater business. As of September 2023, US theaters have generated ticket sales of $6.8 billion, which is 26% higher than that of the same period a year ago (Box Office Mojo).
Furthermore, with expansive marketing strategy by Mattel and Warner Bros., <Barbie> set in motion a cultural phenomenon that successfully drew audiences back to theaters at the dire moment when they needed them most. According to a survey conducted by The Quorum, of those who returned to the theater for the first time since the pandemic, 40% remarked that watching <Barbie> in theaters reminded them of the joy of going to the movies, and that they planned to go more often. In other words, <Barbie> fueled a dramatic theatergoing boost.
Growing Enthusiasm for Premium Formats
Based on the <Barbie> performance at theaters this past summer, box office analysts have determined that there is a growing desire from audiences for premium format showings. Premium formats, in which CJ specializes with its world-leading technologies 4DX and ScreenX system, are particularly appealing for audiences who value movie theaters for immersive and communal cinematic experiences.
Now more than ever, in this digital era overflowing with fleeting shorts and excerpts, media consumers want to be immersed in the majestic experience of the movie theater. Audience want to be enveloped in seas of light emanating from immense screens, while the fellow spectators cheer and cry, together journeying with characters.
The Rise of Alternative Content and the Need for Communal Experience
This fall, although overall movie releases in the US remain lagging compared to the pre-pandemic level in 2019, key films such as Taylor Swift’s <The Eras Tour> are expected to continue the theatergoing boom. The filmed recording of Swift’s ravishing concert tour will be played in premium IMAX and Dolby locations, as well as theaters including CGV with spectacular audiovisual systems.
<The Eras Tour>, which is released theatrically on October 13th, has already earned north of $26 million in presale in US theater circuits. The concert film further became the best first-day ticket seller of 2023 on the ticketing service Fandango–a level of performance previously achieved by superhero films and franchises.
Keeping up the energy shared at her record-breaking stadium tour, Swift’s film will boost theatergoing in movie theaters that otherwise expect delayed openings due to the Hollywood writers’ strike. Like the audiences of <Barbie> awash in hot pink, the spectators of Swift’s film are encouraged, by the singer herself, to come to the screening in their merchandise, sing, and dance along with the filmed concert.
The Evolution of CGV in and Beyond South Korea
CGV, which aims to evolve into a multi-entertainment venue, has been diversifying its content to boost revenue. In South Korea, CGV has been widely experimenting with showing alternative content including K-pop concerts, musicals, opera, and even originals from various OTT platforms including TVING–CJ’s streaming service. Its spaces have further been open to live concerts, indoor rock-climbing, golf, and e-sports. As of August, this year’s 530,000 alternate content spectators already exceeded those of 2022.
Movie theaters are no longer what they used to be—mainly showing professionally made, high-budget films in silent auditoriums. Movie theaters are now becoming more expansive and inclusive spaces that veer more closely towards live events, amplified by the audience’s active engagement. With extensive experience of showing concert films and alternative content in its evolution through the pandemic, CGV will continue to provide a holistic communal experience to spectators. Dear movie-goers: please gear up in your favorite merchandise and get ready to sing, laugh, and burst into tears with your favorite actors and singers on the screen.
