On the 22nd (Tuesday), Megabox Central and Lotte Cultureworks announced plans to intensify investment in the theater and film industry following their merger. Their strategy involves securing necessary funds through improving financial stability and attracting external investments, focusing these resources on enhancing theater infrastructure and the competitiveness of content businesses.
Recently, the domestic film industry has been experiencing a long-term recession due to complex factors such as the expansion of global OTT services, investment contraction, and a decline in audiences. The two companies plan to use this merger as an opportunity to improve their revenue structure through attracting new investments, streamlining organizational operations, and creating marketing synergies, utilizing the secured resources for ▲ improving financial structure ▲ enhancing customer service ▲ expanding content investment.
In particular, they have prioritized strengthening services for theatergoers. They plan to focus on expanding special screening rooms and differentiating the viewing environments to encourage audiences to return to theaters. Currently, Megabox Central operates Dolby Cinema and MX4D rooms, while Lotte Cultureworks manages special venues like Superplex, GwangEum Cinema, and Charlotte Theater. The two companies plan to expand the special venues concentrated in the metropolitan area to improve cultural accessibility.
Additionally, they will contribute to invigorating the content creation ecosystem. They plan to offer more production opportunities to creators and focus on discovering competitive K-content and emerging talents. Based on their production capabilities and infrastructure, they aim to continuously produce high-quality content and establish a virtuous cycle structure where the revenue generated is reinvested into the overall domestic film industry.
A JoongAng Group official noted, "The launch of the merged entity is expected to be a turning point that breathes new life into the long-stagnant Korean film industry," adding, "We will work together to provide more creative opportunities for filmmakers and present diverse works to audiences, so that theaters can regain their vitality." He further stated, "We will thoroughly implement all procedures from the beginning of preliminary consultations with the Fair Trade Commission to formal corporate merger reports."
[Photo] Megabox logo, Lotte Cultureworks logo
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