CGV to raise movie ticket prices by 1,000 won from April 4th, citing accumulated losses due to COVID-19

CGV to raise movie ticket prices by 1,000 won from April 4th, citing accumulated losses due to COVID-19
Reg. Date	2022.03.25 11:30	Views	1140
Starting April 4th (Monday), the price for adult 2D movie tickets will increase by 1,000 won, adjusted to 14,000 won on weekdays and 15,000 won on weekends. Prices for special technology theaters such as IMAX, 4DX, ScreenX, SPHEREX, and Starrium will increase by 2,000 won, and premium theaters like Cine de Chef, Tempur Cinema, and Gold Class will increase by 5,000 won each. Notably, CGV has recorded accumulated operating losses of approximately 366.8 billion won in Korea alone over the past two years due to increased fixed costs such as rental and management fees, a sharp decline in concession sales caused by the prohibition of food and beverages in theaters, restrictions on operating hours, seating arrangements, and increased pandemic prevention costs. Even this year, the situation has not shown signs of improvement since February, which included the Lunar New Year holiday, due to the spread of the Omicron variant. The company has been unable to escape 25 consecutive months of deficits since February 2020, when COVID-19 began to take hold. Despite this ongoing deficit, to support the virtuous cycle structure of the film industry, CGV has continued its efforts to restore the Korean film ecosystem. Last summer, the company supported distribution and production companies with approximately 8.8 billion won to promote the release of Korean films such as "Escape from Mogadishu" and "Sinkhole," and has continuously supported the marketing of films released to date. CGV anticipates that the increase in ticket prices will lead to increased revenue distribution for production, investment, and distribution, thereby contributing to the recovery of the film industry. Simultaneously, CGV plans to focus on creating a foundation for survival by promoting theater stabilization and business restructuring within CGV itself. Meanwhile, theater industries worldwide, also hit by COVID-19, are fighting for survival. AMC, the largest cinema chain in the United States, began implementing a policy of charging an additional $1.50 for tentpole movies in March. Cineworld, the world's second-largest cinema chain, increased its average movie ticket prices by 40% in the UK last year upon reopening after COVID-19. A CGV official stated, "It is no exaggeration to say that the domestic film industry, where investment, production, distribution, and screening operate as one, has suffered the greatest damage of any industry since COVID-19 and is on the verge of collapse." The official added, "We ask for your generous understanding of the current situation, where we are compelled to raise ticket prices for the survival of the film industry." Furthermore, the official expressed, "We are deeply sorry for increasing the burden on our audience who love movies, but we will strive to ensure that good movies are continuously shown in theaters, and through this, provide comfort to the entire nation." Article Source: ⓒ SBS Entertainment News *These are English translations of articles from our GTTOUR Japanese website.*

Reg. Date

2022.03.25 11:30

Views

1140

Starting April 4th (Monday), the price for adult 2D movie tickets will increase by 1,000 won, adjusted to 14,000 won on weekdays and 15,000 won on weekends. Prices for special technology theaters such as IMAX, 4DX, ScreenX, SPHEREX, and Starrium will increase by 2,000 won, and premium theaters like Cine de Chef, Tempur Cinema, and Gold Class will increase by 5,000 won each.
Notably, CGV has recorded accumulated operating losses of approximately 366.8 billion won in Korea alone over the past two years due to increased fixed costs such as rental and management fees, a sharp decline in concession sales caused by the prohibition of food and beverages in theaters, restrictions on operating hours, seating arrangements, and increased pandemic prevention costs. Even this year, the situation has not shown signs of improvement since February, which included the Lunar New Year holiday, due to the spread of the Omicron variant. The company has been unable to escape 25 consecutive months of deficits since February 2020, when COVID-19 began to take hold.

Despite this ongoing deficit, to support the virtuous cycle structure of the film industry, CGV has continued its efforts to restore the Korean film ecosystem. Last summer, the company supported distribution and production companies with approximately 8.8 billion won to promote the release of Korean films such as "Escape from Mogadishu" and "Sinkhole," and has continuously supported the marketing of films released to date.

CGV anticipates that the increase in ticket prices will lead to increased revenue distribution for production, investment, and distribution, thereby contributing to the recovery of the film industry. Simultaneously, CGV plans to focus on creating a foundation for survival by promoting theater stabilization and business restructuring within CGV itself.

Meanwhile, theater industries worldwide, also hit by COVID-19, are fighting for survival. AMC, the largest cinema chain in the United States, began implementing a policy of charging an additional $1.50 for tentpole movies in March. Cineworld, the world's second-largest cinema chain, increased its average movie ticket prices by 40% in the UK last year upon reopening after COVID-19.

A CGV official stated, "It is no exaggeration to say that the domestic film industry, where investment, production, distribution, and screening operate as one, has suffered the greatest damage of any industry since COVID-19 and is on the verge of collapse." The official added, "We ask for your generous understanding of the current situation, where we are compelled to raise ticket prices for the survival of the film industry." Furthermore, the official expressed, "We are deeply sorry for increasing the burden on our audience who love movies, but we will strive to ensure that good movies are continuously shown in theaters, and through this, provide comfort to the entire nation."

These are English translations of articles from our GTTOUR Japanese website.

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