Insight Through 5 keywords

Here are five keywords shaping the future of the Korean video industry in 2024, based on insights from 67decision-making leaders. (*Quotes are paraphrased from survey participants, with anonymity respected.) 

Theaters in January 2024 (ⓒ Oh Kye-ok)

Keyword 01. Recession and Survival 

It's no exaggeration to say that "a sense of crisis pervades the entire content industry" as "an unusually inflated industry bubble" deflates. Since the COVID-19 pandemic, social distancing and ticket price hikes have diminished the incentive to go to the cinema, while YouTube, OTT platforms and the recent popularity of short-form have become much more affordable entertainment options. This change in audience behavior has dismantled the traditional peak season for the cinema market, which was once guaranteed.

"With the shift in demand towards overseas travel and outdoor activities during school breaks and holidays, particularly in the post-COVID-19 era”, the traditional 'big season' in the media landscape, characterized by “mass marketing and wide releases, has lost its impact”. Consequently, the reliance on temporary audience mobilization at the beginning of peak seasons is no longer viable. Especially for big-budget entertainment films reliant solely on star power, lukewarm reviews have led to a contraction of the investment market. "A decline of environment of content creation and distribution has led to a more conservative and less diverse capital market, resulting in a reliance on established industry players". The market polarization marked by these trends suggests that the current crisis is likely to persist in future.

While OTT series initially appeared to thrive amidst the cinema crisis, they are also facing challenges. Many completed films are struggling to secure a platform for distribution. "Despite the limitation of investment volume and platforms, the market is becoming oversaturated with productions awaiting funding or release. Although K-content may seem enticing from an external perspective, internally it faces a chilling reality”.

Despite challenges, the prevailing focus of respondents remains on 'survival'. Just as revenues from cultural consumption, including sports and theaters have rebounded to pre-pandemic levels, there's optimism for the content industry's recovery. This recovery hinges on restructuring efforts, notably through the "acquisition and rebranding of production companies by large investment firms”. "The landscape, with its limited number of platforms and channels, foresees continual rises in production costs, prompting the emergence of alternative production methods. Collaborations and diversification strategies are expected to proliferate”. Entities like SLL, CJ ENM Studios, and Kakao are expanding their presence by acquiring diverse production companies, serving as examples. Consequently, there are some points of views that "investors will directly intervene in the label's production lineup and budget management, so investment and production will become more interconnected, planning is likely to become increasingly showrunner-centric, with a focus on writers and original intellectual properties at the core”. 

Keyword 02. Short Form and Dofaming

YouTube channels are surpassing traditional broadcast shows in buzz worthiness, while short-form content platforms like TikTok, YouTube Shorts, and Instagram Reels are experiencing a surge in popularity. Survey respondents mentioned short-forms as "one of the trends that underscores the blurring boundaries across content consumption channels". The growing appeal of these short-forms, described as "stimulating and ever-shortening", is closely linked to the phenomenon of 'dofaming’, which reflects recent consumption trends centered around "the pursuit of short, intense stimulation to satisfy dopamine" and "not just enjoying, but chasing" content. 

Dofaming serves as "a distraction from the economic challenges not yet overcome from the pandemic, and the monotony of life", and demonstrates "a correlation with directionality of the Korean content industry". In the same vein, there is also criticism that the box office triumph of 12.12: The Day reflects "public's appetite for brief and high-intensity stimulation". While some express “concerns that the consumption of stimulating video media does not leave room for academic contemplation", others argue that "the content industry's role is to fill the void left by the dopamine epidemic," finding value in the opposite approach of “making content more immersive and meaningful". 

Keyword 03. Global Market and Diversity

While it is not universally advantageous for all, the global market has presented new opportunities for numerous content creators. The prevailing viewpoint among respondents is that "ever-increasing global appeal of K-pop and K-dramas is anticipated to reach its zenith this year”, emphasizing "the imperative to embrace diversity from a comprehensive standpoint".

Even the most ambitious projects previously confined to a limited audience in a domestic audience, now have the potential to reach a much broader global viewership. In an era where "the entire world can access the same content simultaneously”, traditional criteria such as "content length, platform, and format are no longer viewing prerequisites." Consumption is now "guided by personal preferences rather than adhering to universal standards". 

Consequently, “content capable of delivering a 'unique' user experience-such as dramas and films integrating unexpected elements, socially diverse themes, or incorporating elements of sports, gaming, and technology-” can set itself apart in the marketplace. In a landscape where brand value is cultivated by appealing to niche tastes rather than mass production, "prioritizing genre diversity and top-notch quality to meet varied preferences becomes paramount over works tailored for a broad, unspecified audience". Diversity emerges as an indispensable factor for survival.

Keyword 04. Artificial Intelligence

The Hollywood writers' and actors' strike of last year arose from a sense of crisis over AI potentially encroaching upon their domain, with the industry seemingly unwilling to impede its progress. Films produced solely by AI were even granted copyright protection. AI's influences with "other endeavors such as changes in content creation methods, human replacement by AI, cost-cutting in production processes, all aimed at disrupting the established industry framework" across the entertainment industry.

"AI shows tendency to increasingly assume roles as an assistant writer and even procure basic royalty-free music. While it hasn't quite reached the stage of original content creation like humans, it certainly reduces the energy and time needed for intermediate steps toward that goal." 

AI is also emerging as one of the players in content planning. The launch of Open AI's General Artificial Intelligence (AGI) in 2024 has raised predictions that "a surge of ideas for content development and creation leveraging AGI will soon follow".

"The futuristic concepts we once assumed where just imagination are now seamlessly integrated into our daily routines. With the rise of single-person households and the growing demand for convenience, we will be entering an era where AI-powered devices, applications, and other innovations will play a central role in shaping our everyday lives."

Keyword 05. Value for Money (or Time) and Ditto Consumption

It's an era where value is paramount not only for money but also for time. Initially, amidst the pandemic, the public recognized that they could enjoy comparable benefits through OTT or YouTube, eliminating the need for a costly theatre ticket. Consequently, "the film industry continues to struggle in its recovery, while the profitability of numerous platforms has declined".

"As the return on investments dwindles in 2023, the landscape of major funded distributors, previously dominated by blockbuster titles, is undergoing swift transformation. Moving forward, there will be a reduction not only in the sheer volume of films but also a shift towards the cultivation of modestly budgeted productions, departing from the traditional high-risk, high-reward paradigm." 

This aligns with the ongoing discourse on the 'generational shift' within the Korean film industry. "Rather than focusing solely on large-scale projects helmed by established directors, who may face challenges in immediately reducing production costs, there are growing opportunity for young creators to flourish within a more streamlined pre-production framework, allowing them to showcase their individuality".

On the flip side, the surge of genre films featuring emerging actors like Night has come and High Cookie, alongside the popularity of reality shows on platforms like Netflix, can be seen “as part of a broader trend towards more cost-effective content strategies”. The resurgence of Y2K and analog influences in recent pop culture also ties into this shift. "Content relying heavily on flashy visual effects, such as zombies, creatures, and disaster films, may see a slowdown. Instead, there's a growing nostalgia for analog aesthetics and a renewed appreciation for narratives centered around family values, in response to previous blockbusters criticized for prioritizing visuals over substance".

The emergence of the neologism 'time-to-value', denoting performance and efficiency concerning time, underscores the increasing significance of time for individuals leading busy lives. With people "opting for shorter content consumption sessions and gravitating towards longer content that guarantees entertainment", "content creators must cater to audience preferences by offering timely and engaging content". The concept of ‘Ditto consumption’, wherein "individuals follow personalities with similar tastes and ideas to streamline content selection", further highlights the pursuit of relevance. "As the volume and cost of available content surge", seeking others' opinions has become crucial, fueling the ongoing trend of "relying on pre-established ratings to guide consumption decisions" into the foreseeable future.

Written by Lim Su-yeon

Translation by Jang Yuri