The Korean drama landscape is on the brink of a crisis as actors push for unprecedented fees, reaching up to 1 Billion KRW (748,000 USD) per episode. This surge in demands is sending shockwaves through the industry, leading to fewer dramas being produced.
Rising Costs Prompt Emergency Meeting
To tackle the escalating issue of soaring production costs, the Korean Drama Production Companies Association convened a crucial meeting on January 16 in Seoul.
Representatives from various drama production companies and TV platforms gathered to strategize ways to rein in costs and ensure a more sustainable production landscape.
Actor Fees at the Core of the Crisis
The meeting highlighted the major challenges faced by production managers, with a spotlight on the escalating fees demanded by lead actor.
The consensus among attendees was that urgent action is needed to address this critical issue, as high actor fees not only lead to a decrease in drama production but also pose a significant threat to the entire Korean TV and video industry.
Broadcasting Company Weighs In
A representative from a broadcasting company shed light on the frequent issues arising during negotiations, emphasizing the rapid uptick in actors' fees.
The vicious cycle of increasing costs has been triggered by lead actors demanding exorbitant fees, leading production companies to pay hefty sums to secure their involvement.
Global Impact of Streaming Platforms
The restructuring of the drama industry, influenced by the rise of global streaming platforms like Netflix, has intensified the challenges.
While actors' fees surge globally, domestic industry capital struggles to cover production costs. The absence of a viable solution adds to the growing concern among production companies.
Disparity in Fees and Global Standards
Production company heads expressed difficulty in competing with global streaming giants, citing significant differences in production budgets.
Calls for guidelines similar to those in China, where actor fees are capped at a certain percentage of total production costs, echoed through the discussion.
Proposed Resolutions and Challenges
Suggestions were tabled during the meeting to calculate fees based on production periods, shooting days, and hours instead of per episode.
However, challenges persist, particularly in addressing the glaring disparities in actor fees between traditional broadcasting and over-the-top (OTT) platforms.
Netizens' Perspectives
Korean netizens weighed in on the issue, expressing concerns about the disparity in pay between staff and actors on OTT platforms, advocating for specific regulations on pay percentages, and questioning the sustainability of production companies in the face of escalating costs.
In this critical juncture, the future of the K-Drama industry hangs in the balance, with stakeholders grappling to find a viable solution to the rising tide of actor fees.
KDramaStars owns this article.
Written by Michelle Williams.
