[Exclusive] Will "Moana" and "Spider-Man" Not Be Shown at Megabox?

Disney, Sony, and UPI Demand Weekly Settlements
Megabox Responds: "Longer Than a Week Is Needed"

Overseas direct distributors, including Walt Disney Company Korea, Sony Pictures, and Universal Pictures International (UPI), have made unprecedented demands for settlement conditions to Megabox, which is currently undergoing rehabilitation proceedings.

Megabox logo.

According to the film industry on July 3, these three companies recently requested Megabox to change the settlement cycle for box office revenue from the usual monthly basis to a weekly basis. Settlement of box office revenue between theaters and distributors typically takes place within 30 to 45 days after the end of the month. However, the distributors are asking to significantly shorten the settlement period in order to reduce the uncertainty of collecting payments due to the rehabilitation proceedings. If this request is not accepted, it is reported that there is consideration of not releasing Disney's "Moana," UPI's "Minions & Monsters," and Sony's "Spider-Man: Brand New Day" at Megabox theaters.

On June 15, Megabox applied for the commencement of rehabilitation proceedings, and on the same day, the court issued a preservation order and a comprehensive prohibition order. Once rehabilitation proceedings begin, claims that arise before the commencement are classified as rehabilitation claims, making immediate repayment difficult, whereas claims that arise after the commencement are classified as public interest claims and are paid normally with court approval. However, it is understood that the direct distributors believe that the longer the settlement cycle, the greater the risk of collection.

While Megabox agrees on the need to shorten the settlement cycle, it is known to have proposed a final plan with a cycle longer than the weekly basis requested by the distributors. A Megabox official stated, "Settlement of box office revenue will proceed normally according to the rehabilitation proceedings."

Megabox also faces significant burdens. Under the rehabilitation process, all expenditures require court approval and the submission of relevant documents. The shorter the settlement cycle, the more administrative procedures are needed, and the greater the pressure on cash flow management. In addition, if the demands of overseas direct distributors are accepted, there is concern that other distributors may also request the same terms.

Still cut from the movie "Moana".

On the other hand, distributors also find it difficult to easily exclude Megabox. Megabox holds over 20% market share in the domestic theater industry and is the only operator of Dolby Cinema in Korea. Especially for large commercial films, the proportion of revenue from premium theaters is high, and the number of audiences in the early days of release determines box office success or failure, making a reduction in the number of screens a significant concern.

An official from a domestic distributor said, "There are very few films that can choose to open without Megabox, which has over 20% market share," adding, "From the perspective of domestic investors and distributors, it is not easy to give up on Megabox."

This content was produced with the assistance of AI translation services.