Market Competition and Cultural Tensions Between Hollywood and the Korean Film Industry
Author(s)
Kim, E. M.
Abstract
The market shares of Hollywood movies in European and Asian markets are so large that policymakers around the world are concerned about the import domination not only in theaters but also in the subsequent windows. Media economists acknowledge that domestic producers have an advantage in terms of a “cultural discount,” referring to the unavoidable disadvantage of imported films. However, expenditure on a film’s production also determines the extent of popular appeal, thus creating an advantage for films that have a large and wealthy home market base such as Hollywood. In this article, I aim at understanding the dynamics of these 2 seemingly opposing forces in the motion picture market in Korea. I review the film market in Korea, explore the relation between performances of 2 windows, theaters and home video, over the two countries-the United States and Korea-and compare the determinants of performance of Hollywood and local films in Korean box offices. A strong hit orientation and preference for local content was empirically found
