After enduring longstanding COVID restrictions, many of the Korean executives attending AFM this week will be making their first business trip to the United States in more than two years. While they were away, the Korean entertainment scene underwent a transformation.
Changes have proven difficult for some and beneficial for others. But, whether for defensive or aggressive reasons, many Korean companies are now reshaping their businesses. They are preparing for a future where Korean entertainment is no longer a sideshow that is primarily appreciated and accepted within Asia.
During the pandemic, ‘Parasite’, BTS, and ‘Squid Game’ have been transmitted across streaming platforms – music and video – to global audiences much more effectively than traditional media with old and geographically limited gatekeepers. Fans of Korean entertainment interact live with new TV shows, online concerts, and music groups in immediate and measurable ways. The Korean Wave has reached places as diverse as the American Midwest, Latin America, and India – where media buyers have arguably underestimated the quality of their audience, especially the screen-based younger generations who are not afraid of translation or music in foreign languages.
The Korean entertainment sector that has been less helpful than resetting the pandemic is the movie industry. As with other countries, South Korea has continued to shut down production. More damaging, however, was the impact of movie releases and viewings, which actually only returned to high alert in May, when health restrictions were officially dropped, and faltered again. With local title releases delayed or canceled, which typically account for a 50% market share, the box office has fallen in both 2020 and 2021.
This caused lasting financial damage to large parts of the film’s ecosystem, especially producers, domestic distributors, and exhibitors. Sales agents and studios were buoyed by bookstore titles and demand from broadcasters seeking to build deeper and more representative Korean content offerings.
Korean sales agents were the stars of the October rights market in Busan: “I haven’t spoken to sellers from anywhere other than Korea the whole time I was in Busan,” says a prominent buyer from Thailand. But their roster had a lot fewer really new titles than it did in the pre-COVID year. Many of the titles shown were filmed in 2020 or 2021 and have been in post-production for a long time, awaiting a proper Korean release date.
This phenomenon may continue until AFM, although in-person meetings at Loews Santa Monica will likely be with non-Asian buyers who did not attend Busan. Korean sales agents are already reporting full warrants.
The broader phenomenon of Korean culture is likely to be influenced by interest in and preparation for selling Korean films.
“The huge interest in K-Pop and TV dramas definitely helps sales of Korean companies,” says Danny Lee, who heads sales operations for Contents Panda, the sales arm of studio Next Entertainment World. “I don’t think there are more barriers between cinema, TV dramas, and K-pop. Everything is tied together and kinda helps our sales.”
This is because many Korean entertainment companies have changed their businesses and strategies to suit the new conditions: dwindling theatrical values; More talents appearing on screen and behind the camera while recognizing global names; The currently insatiable demand for TV content (written dramas in particular, but also Korean formats and unscripted shows); and richer budgets. And, apparently, almost any project can attach a current or former K-pop star.
Korean film production companies have diversified into television. Korean TV producers have diversified (Shingle Barunson launches rights sales unit at AFM) or expanded. Some, including CJ ENM, JTBC, and J Contentree backed by SLL, are to a large extent.
Music and talent companies have moved into TV production and fan technology. Korean technology leaders Naver and Kakao have spent millions boosting their search engine and social media prowess with investments that advance the rapidly growing online literature and web sectors.
Korean broadcasters TVing, Wavve and Coupang Play are expanding their commissioning and hatching deals with programs that will likely give them a chance to rival market leader Netflix, or at least keep newcomers Apple, Amazon and HBO at bay.
So, while rights sales may be the daily order in the aisles of Loews, deals like these could be the tip of the iceberg of deal-making as the gorgeous South Korea positions itself in a long-term global entertainment role.
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