▶ RSQUARE Research Center publishes the 2026 Movie Theater Market Report: 'The End of Tickets, The Beginning of Space'
▶ Box office revenue last year halts at half of 2019 levels; "Strategic choices split fates" as CGV hits deficit, Lotte sees profit, and Megabox grows
▶ "Premium tech halls, repurposing spaces, and diversifying theater utilization… Theaters are redefining space itself"
The domestic theater industry continues to face a structural recession with no signs of recovery even in the post-pandemic era. Annual revenue for 2025 remained at half the level of 2019, and the number of annual movie releases shriveled to one-third during the same period. In an environment where available content has decreased and OTT services have become a part of daily life, theaters have reached a turning point where they must rewrite their survival equations—focusing on 'spatial efficiency and revenue diversification' rather than mere 'screen counts.' The RSQUARE Research Center (CEO: Lee Yong-gyun) released the 2026 Movie Theater Market Report: 'The End of Tickets, The Beginning of Space' on the 26th, highlighting these structural changes.
■ Same Crisis, Different Results: Strategic Choices Split Fates
According to the report, CGV recorded an operating loss of 5.6 billion KRW as of Q3 2025 due to fixed cost burdens from maintaining its massive footprint, leading to intense restructuring efforts including voluntary retirement programs. Lotte Cinema chose the opposite path. By closing 10 branches throughout 2025 and remodeling remaining locations to enhance spatial efficiency, it successfully generated an operating profit of 8.2 billion KRW despite declining revenues. Megabox continues an upward trend in both revenue and operating profit by targeting premium moviegoers, expanding special tech halls such as Dolby Cinema, and strengthening exclusive screening content. The diverging results of these three major operators clearly demonstrate that spatial efficiency and maximizing revenue per viewer—rather than the sheer number of screens—are now the critical variables for survival.
Behind this backdrop lies a structural crisis in the box office market. In 2025, annual revenue for domestic movie theaters was approximately 1.0470 trillion KRW, representing a 45% decrease compared to 2019 (1.9140 trillion KRW). The annual number of moviegoers also plummeted from 226 million to 106 million during the same period. Furthermore, annual movie releases dropped sharply by 66%, from 1,740 films in 2019 to just 585 in 2025. This is a direct result of the production and investment sectors shelving new projects en masse after the average return on investment (ROI) for domestic commercial films hit -31% in 2023. As a vicious cycle takes hold—moving from fewer releases to viewer attrition, and ultimately to shrunken investments—the surging popularity of OTT platforms and the rise of alternative entertainment options, such as musicals, exhibitions, and sports, are accelerating the theater crisis.
■ Special Tech Halls, Repurposing, and Diversification: How Theaters Redefine Space
Spatial utilization strategies are also evolving rapidly. In the F&B sector, theaters are moving away from traditional popcorn and soda combos to increase guest dwell time and per-capita spending. This is being driven by unique branded menus, such as CGV's collaboration with 'Yoajung' to launch a 'Blueberry Yogurt Latte,' alongside integrations with cafes, alcoholic beverage sales, and merchandise marketing. Seating portfolios have also polarized. Strategies to raise the average ticket price (ATP) are spreading, notably by expanding private halls that cost up to 70,000 KRW per person and premium tech halls priced in the 40,000 to 50,000 KRW range.
The report highlights three ongoing strategic directions for future survival:
Strengthening Special Tech Halls (4DX, Dolby, etc.): Heightening the unique spatial characteristics of theaters that cannot be replicated through OTT experiences.
Repurposing Spatial Layouts: Converting portions of theater facilities into sports centers or exhibition halls to boost foot traffic and transition into experiential complex cultural spaces.
Maximizing Spatial Availability: Boosting auditorium utilization rates by introducing alternative content, such as live sports broadcasts, concerts, and lectures.
Meanwhile, the government is reviewing the introduction of a subscription-based pass that would allow consumers to watch four movies a month for 15,000 KRW. However, the key point of contention remains calculating the profit-sharing ratios among theaters, distributors, and production companies. For the system to be effective, policy-driven incentives must align with a recovery in core content competitiveness.
"The era of quantitative expansion in the theater industry, which had continued since the 2000s, is effectively over," stated Gyu-jung Choi, Senior Researcher at the RSQUARE Research Center. "Moving forward, a movie theater's competitiveness will be determined not by its screen count, but by the efficient reorganization of its space and the diversification of its revenue models."
The report also includes essential data for real estate investment and leasing decision-making, such as global box office comparisons, movie theater supply status by major domestic commercial districts, and branch closure trends.
\ 
▶ RSQUARE Research Center publishes the 2026 Movie Theater Market Report: 'The End of Tickets, The Beginning of Space'
▶ Box office revenue last year halts at half of 2019 levels; "Strategic choices split fates" as CGV hits deficit, Lotte sees profit, and Megabox grows
▶ "Premium tech halls, repurposing spaces, and diversifying theater utilization… Theaters are redefining space itself"
The domestic theater industry continues to face a structural recession with no signs of recovery even in the post-pandemic era. Annual revenue for 2025 remained at half the level of 2019, and the number of annual movie releases shriveled to one-third during the same period. In an environment where available content has decreased and OTT services have become a part of daily life, theaters have reached a turning point where they must rewrite their survival equations—focusing on 'spatial efficiency and revenue diversification' rather than mere 'screen counts.' The RSQUARE Research Center (CEO: Lee Yong-gyun) released the 2026 Movie Theater Market Report: 'The End of Tickets, The Beginning of Space' on the 26th, highlighting these structural changes.
■ Same Crisis, Different Results: Strategic Choices Split Fates
According to the report, CGV recorded an operating loss of 5.6 billion KRW as of Q3 2025 due to fixed cost burdens from maintaining its massive footprint, leading to intense restructuring efforts including voluntary retirement programs. Lotte Cinema chose the opposite path. By closing 10 branches throughout 2025 and remodeling remaining locations to enhance spatial efficiency, it successfully generated an operating profit of 8.2 billion KRW despite declining revenues. Megabox continues an upward trend in both revenue and operating profit by targeting premium moviegoers, expanding special tech halls such as Dolby Cinema, and strengthening exclusive screening content. The diverging results of these three major operators clearly demonstrate that spatial efficiency and maximizing revenue per viewer—rather than the sheer number of screens—are now the critical variables for survival.
Behind this backdrop lies a structural crisis in the box office market. In 2025, annual revenue for domestic movie theaters was approximately 1.0470 trillion KRW, representing a 45% decrease compared to 2019 (1.9140 trillion KRW). The annual number of moviegoers also plummeted from 226 million to 106 million during the same period. Furthermore, annual movie releases dropped sharply by 66%, from 1,740 films in 2019 to just 585 in 2025. This is a direct result of the production and investment sectors shelving new projects en masse after the average return on investment (ROI) for domestic commercial films hit -31% in 2023. As a vicious cycle takes hold—moving from fewer releases to viewer attrition, and ultimately to shrunken investments—the surging popularity of OTT platforms and the rise of alternative entertainment options, such as musicals, exhibitions, and sports, are accelerating the theater crisis.
■ Special Tech Halls, Repurposing, and Diversification: How Theaters Redefine Space
Spatial utilization strategies are also evolving rapidly. In the F&B sector, theaters are moving away from traditional popcorn and soda combos to increase guest dwell time and per-capita spending. This is being driven by unique branded menus, such as CGV's collaboration with 'Yoajung' to launch a 'Blueberry Yogurt Latte,' alongside integrations with cafes, alcoholic beverage sales, and merchandise marketing. Seating portfolios have also polarized. Strategies to raise the average ticket price (ATP) are spreading, notably by expanding private halls that cost up to 70,000 KRW per person and premium tech halls priced in the 40,000 to 50,000 KRW range.
The report highlights three ongoing strategic directions for future survival:
Strengthening Special Tech Halls (4DX, Dolby, etc.): Heightening the unique spatial characteristics of theaters that cannot be replicated through OTT experiences.
Repurposing Spatial Layouts: Converting portions of theater facilities into sports centers or exhibition halls to boost foot traffic and transition into experiential complex cultural spaces.
Maximizing Spatial Availability: Boosting auditorium utilization rates by introducing alternative content, such as live sports broadcasts, concerts, and lectures.
Meanwhile, the government is reviewing the introduction of a subscription-based pass that would allow consumers to watch four movies a month for 15,000 KRW. However, the key point of contention remains calculating the profit-sharing ratios among theaters, distributors, and production companies. For the system to be effective, policy-driven incentives must align with a recovery in core content competitiveness.
"The era of quantitative expansion in the theater industry, which had continued since the 2000s, is effectively over," stated Gyu-jung Choi, Senior Researcher at the RSQUARE Research Center. "Moving forward, a movie theater's competitiveness will be determined not by its screen count, but by the efficient reorganization of its space and the diversification of its revenue models."
The report also includes essential data for real estate investment and leasing decision-making, such as global box office comparisons, movie theater supply status by major domestic commercial districts, and branch closure trends.