Distribution revolution: shifting ranks

'The Front Line' was one of several critically acclaimed local films released by Showbox.One of the big dramas playing out in the Korean film business today is the changing landscape among local distributors.It was ignited by CJ E&M, which was re-established as a massive enterprise in the local entertainment business in April, 2011. The company merged film, music, game and media companies under one roof in order to maximize the synergies of vertical integration.It distributed more than 50 foreign and local films under three labels last year: CJ Entertainment, newly consolidated CJ E&M, and its specialty division Filament Pictures. The three labels dominated the industry by grabbing a total market share of 37.4% -- up 7.1% from the days of CJ Entertainment in 2010.Local distributors' market share was much bigger than that of the U.S. direct distributors last year. In 2010, three direct distribs -- Fox, Warner Bros. and Sony Buena (Sony Pictures Releasing Buena Vista Korea) -- were included in the top five distributors list and got a market share of more than 30%.However in 2011, four out of the top five distributors were local. Only Sony Buena was included in the top five ranking with a relatively small 8.5% take at No. 4. Following CJ E&M, Lotte Entertainment ranked No. 2; Next Entertainment World was No. 3 -- with a 15.4% and 9% market share, respectively. Showbox, which was the second-biggest local distributor until 2009, ranked No. 5 with a 7.9% take.Lotte Entertainment has made the most conspicuous advance among local distribs. It held the second rank with a 15.4% market share for the first time since its launch in 2004; this was up by 3.7% up compared to the previous year.Lotte distributed 30 films, of which 21 were local, including last year's No. 1 at the B.O., "Arrow, the Ultimate Weapon."After Showbox Mediaplex sold off its multiplex chain Megabox, Lotte became the only company that can compete with CJ E&M by vertically integrating its film business division with its affiliate exhibition business, Lotte Cinemas. The company also officially launched its international department in 2011 and plans to expand globally.This ambition was underlined in December, when group chairman Shin Dong-bin exchanged a memorandum of understanding with Los Angeles mayor Antonio V