[The Film Industry's Short-Form Content 3] Will it Become a New Growth Engine Beyond Familiar Narratives?

Expanding Business Areas Based on Existing Production CapabilitiesDiscovering New IPs and Revenue Models"Short-form and film industries can develop into a mutually complementary relationship."Amidst changes in existing production and distribution structures due to the slow recovery of theater audiences since COVID-19, evolving content consumption patterns, and intensifying competition among platforms including OTT, attention is focused on whether short-form content can become a new growth engine for the film industry. /THE FACT DBAs the short-form market rapidly grows, its influence is expanding beyond mobile environments to the entire film industry. Can it establish itself as a new growth engine for the stagnant film industry by riding this trend? delves into the background of short-form growth, the film industry's perspective on it, the possibility of coexistence between short-form and the film industry, and the future direction of the film industry. [THE FACT|Reporter Park Ji-yoon] The film industry is seeking new avenues for growth. This is because, following COVID-19, theater audiences have not recovered as expected, and changes in content consumption patterns and intensified competition among platforms, including OTT, are bringing about shifts in existing production and distribution structures.Amidst this, short-form content has emerged as a new item in the film industry with the spread of mobile-centric content consumption. This is driven by the expectation that short videos can serve as a new touchpoint for audiences and a means for expanding film IPs and generating revenue. So, what kind of synergy can short-form content create with the existing film industry going forward?First, although both films and short-form content are video content, they have distinct differences in their planning stages, production methods, and narrative grammar. While films densely build up characters, events, and emotions within a long runtime, the key for short-form content is to capture viewers' attention within a short period and maintain immersion in each episode.In other words, clear concepts, intuitive conflict structures, rapid development, and plot twists must be considered from the planning stage, and directing methods suitable for mobile viewing environments must also be addressed. It requires a separate production grammar that can effectively convey stories in a short time, not just by reducing the runtime.An official from Showbox, which launched Showbite, stated, "Short-form is a useful area for discovering new IPs as it allows for the exploration of new materials, genres, and characters in a relatively flexible production environment, and for confirming audience reactions." /ShowboxThere are also differences in the revenue structure compared to the existing film business. The film investment and distribution business primarily generates revenue based on audience numbers and box office performance after theatrical release, with additional revenue secured through ancillary rights and overseas distribution. In contrast, short-form content can flexibly pursue various projects based on relatively low production costs and short production periods, and the revenue structure varies depending on investment and production methods.The advantage of relatively low production costs is that it allows for risk management and experimentation with various genres. However, as profitability can vary depending on the box office performance of individual works and the investment and production structure, low production costs do not necessarily lead to high profitability.Therefore, it is difficult to establish a sustainable business model solely based on production cost efficiency, and securing long-term profitability hinges on acquiring proprietary IPs and establishing diverse utilization channels such as domestic and international distribution and subsequent content production.Despite these differences and the realities of the industry, the film industry continues to pay attention to short-form content because it allows for the expansion of existing content production capabilities into new business areas.The planning and development capabilities, production know-how accumulated during the film production process, and the network of creators such as directors, writers, and actors can serve as competitive advantages in the short-form business as well. Furthermore, the ability to discover popular themes, manage the quality of works, and assess the business value of IPs remains valid even as content formats change.A Showbox official, a distributor, explained these background details to , stating, "We are considering both directions: discovering new IPs through short-form and expanding existing IPs. Short-form is a useful area for discovering new IPs as it allows for the exploration of new materials, genres, and characters in a relatively flexible production environment, and for confirming audience reactions."It is possible to expand stories and characters that have proven their competitiveness through short-form into films, series, or games, and it is also possible to present new short-form content such as prequels or spin-offs by utilizing IPs that the company owns or is developing. Of course, since suitable formats and consumption methods differ for each content, it is important not to overlook the need to newly plan and expand stories according to the characteristics of each format, rather than simply repurposing them.As the short-form market is expected to continue growing steadily, the participation of film production companies and investment and distribution companies is also expected to increase. An industry insider stated, "While both short-form dramas and feature films are based on storytelling, there are differences in the time and place of content consumption and viewing purposes, so I believe they have the potential to develop into a mutually complementary relationship rather than a direct competitive one." /Each LogoAs the short-form market is expected to continue growing steadily, the participation of film production companies and investment and distribution companies is expected to become even more active. In particular, for companies that possess existing content production capabilities and IPs, short-form appears to be an area for diversifying their business portfolios and securing new creative and distribution opportunities.However, some film industry officials remain cautious. He stated, "It is difficult to conclude that the growth of the short-form market will directly lead to a reduction in existing film production costs or investment scale," adding, "The two markets differ in production scale, revenue structure, and consumption methods, and in the long term, content companies may change to select appropriate formats based on the characteristics and marketability of individual IPs and to structure their investment portfolios more flexibly."Another film industry official commented, "Since short-form dramas differ from existing films in production methods, distribution structures, and content consumption environments, I believe it is necessary to observe the market's growth potential."This is because the business structure of the short-form drama market is generally platform-centric, focusing on continuously supplying a large volume of content rather than individual works, making it too early to judge business viability based solely on the performance of a few titles.A film industry official frankly admitted, "The entry of existing film production and distribution companies into the short-form market can also be seen as an attempt to expand the scope of content and IP utilization, and it is necessary to observe the actual business performance and market growth trends in the future." He added, "However, it is difficult to conclude that the growth of the short-form market will directly impact the production costs or investment scale of existing films."He further stated, "While both short-form dramas and feature films are based on storytelling, there are differences in the time and place of content consumption and viewing purposes, so I believe they have the potential to develop into a mutually complementary relationship rather than a direct competitive one." He added, "Furthermore, I believe there is potential for inter-content linkage, such as proven stories or IPs through short-form being expanded into seasonal dramas or feature films." jiyoon-1031@tf.co.kr[Entertainment Department | ssent@tf.co.kr][The Film Industry Also Embraces Short-Form 1] From Daily Life to the Content Industry... How Has It Evolved?[The Film Industry Also Embraces Short-Form 2] Direct Production, Vertical Cinema Screenings... The Challenges Continue