In the wake of skyrocketing production costs, the Korean drama industry is facing a crisis marked by schedule reductions and production setbacks.
On January 16, the Korean Drama Production Company Association held a meeting at their Seoul office in Mapo-gu, Sangam-dong, to address these issues. Representatives from drama production companies and broadcast platforms gathered to brainstorm solutions for the vicious cycle of rising production costs and shrinking schedules.
The meeting highlighted the practical difficulties faced by production managers, focusing on the substantial problems arising from the rapid increase in lead actor fees. The industry's downturn poses a significant threat to the core of K-contents, leading stakeholders to recognize the urgency of resolving issues like the rapid rise in total production costs.
A broadcasting company official expressed concerns, stating, "Negotiations with actors often lead to problems, especially regarding lead actors' fees. It's no longer about millions; lead actors are demanding a staggering 1 billion won per episode. With reduced scheduling and production companies forced to meet the demands of lead actors to secure convenient schedules, we find ourselves trapped in a cycle fueling the rise in production costs."
Another production company representative added, "Some star actors limit the broadcasting platform in their contracts, change scripts on-site, or even replace directors. In such situations, it's disheartening for production companies and raises questions about what they truly represent. While production and broadcasting companies expanded the drama market, it seems like only a few actors are reaping the benefits, triggering an unfortunate cycle of rising production costs."
The industry is undergoing a transformation as the influence of domestic broadcasting companies wanes, with a shift towards global OTT platforms like Netflix. Despite a global surge in actor fees, it is challenging for domestic capital to bear the brunt of production costs. The stakeholders acknowledged the lack of a concrete solution to curb the escalating reality of actors casually demanding 2 billion won per episode.
A production company CEO lamented, "Even for our recent projects, we invited actors with casting fees ranging from 400 million to 700 million won per episode. As the hegemony of lead actors' fees intensifies, it becomes difficult to allocate funds for other elements like shooting and art, compromising the overall quality of the production."
To address the issue, there were suggestions to determine actor fees based on factors like production duration, shooting days, and hours rather than a per-episode basis. However, stakeholders acknowledged the complexity of reaching a fair measurement for an actor's reasonable fee.
The challenges extend to the staffing and budgeting aspects, with a 52-hour workweek implementation resulting in increased staff costs. Additionally, expenses for art and CG services have surged.
The Korean Drama Production Company Association emphasized the severity of the situation, revealing that nearly 20 completed projects, with an estimated cost of around 300 billion won, are stranded due to the worsening conditions among broadcasting companies. Urging swift government intervention, they stressed the need for a resolution to prevent significant damage to the industry.
-Actors are really shameless, blindly causing a fuss without knowing the consequences; the aftermath will eventually come back to them.
-10 billion won... That's too much.
-This is why TV channels are reducing the number of drama broadcasts.
-Despite taking up most of the production budget, even if the drama doesn't do well, the acting is terrible, and the quality is poor, the actors don't suffer any losses.
-Actors, have a bit of conscience.
-Why is the inflation of actor prices so high, this is not even Hollywood.
-Not for the whole series but per episode???????????? -.-;;;
-10 billion per episode??
-The inflation is because of OTT. However, since the production companies inflated it several times to attract investment for OTT, there is now a backlash as investment in OTT decreases.
10 billion;;;;; Seriously, this is crazy.
-Appearance fees are determined by the market. I don't know what the problem is. The actor is not always popular for a lifetime, and it's up to the production company to sell it as much as they received to OTT. I understand the issue of improving the treatment of supporting actors and staff, but if 10 billion is expensive, don't use it, and compete based on the quality of the work.
-Is it 10 billion won per episode only for the lead actor, not for all cast members per episode?
-At this rate, everything is going to fail.
-The number of episodes is getting shorter, probably because it's expensive per episode. In the past, some people said that long episodes were not popular, but that sounds like an excuse.
Ten billion per episode is really over the top...
-While it's true that the production company brought this upon themselves, it seems like actors, who are just colleagues working together in the drama industry, are taking advantage of their position, sucking the blood out, and only benefiting themselves.
