Megabox and Lotte Cultureworks Announce Merger to Revitalize Cinema Industry

Megabox and Lotte Cultureworks announced on the 22nd that they plan to "actively pursue investments in theaters and the overall film industry following their merger." The strategy involves securing necessary funds through financial health improvement activities and attracting external investments, which will be focused on enhancing theater infrastructure and content business competitiveness.

The domestic film industry has been experiencing a prolonged downturn due to a combination of factors, including the expansion of global OTT services, reduced investments, and declining audiences. The two companies aim to improve their profit structure through new investment attraction, organizational efficiency, and marketing synergy creation. The funds secured will be utilized for financial structure improvement, customer service enhancement, and expanded content investment.

Enhancing services for theatergoers is a top priority. The companies plan to encourage audiences to return to theaters by expanding special screening rooms and differentiating the viewing environment. Currently, Megabox operates Dolby Cinema and MX4D theaters, while Lotte Cultureworks runs special theaters such as Superplex, Gwangmyeong Cinema, and Charlotte Theater. They plan to expand these special theaters beyond the metropolitan area to improve cultural accessibility.

The companies also intend to contribute to revitalizing the content creation ecosystem. They plan to provide more production opportunities for creators and focus on discovering new talent and competitive K-content. By leveraging their production capabilities and infrastructure, they aim to continuously produce high-quality content and reinvest the profits into the domestic film industry, creating a virtuous cycle.

A representative from JoongAng Group stated, "The launch of the merged corporation is expected to be a turning point that injects new vitality into the long-stagnant Korean film industry. The two companies will work together to provide more creative opportunities for filmmakers and showcase diverse works to revitalize the theater scene." They added, "We will diligently carry out all procedures, starting with preliminary consultations with the Fair Trade Commission and proceeding to the formal corporate merger filing."

By Ji-won Kim, TenAsia Reporter bella@tenasia.co.kr