CJ CGV Co., South Korea’s largest multiplex operator, shuttered its last remaining US theater in Los Angeles on September 21, marking the end of a costly 15-year attempt to crack America’s fiercely competitive cinema market.
The Korean chain’s retreat from North America underscores the mounting pressures facing traditional theater operators as streaming services continue to chip away at moviegoer habits. CJ CGV cited both financial pressures and a strategic pivot toward premium format licensing as reasons for the closure, according to company statements.
The chain’s American venture began promisingly in 2010 with a Koreatown location in Los Angeles, followed by theaters in Buena Park in 2017 and San Francisco in 2021. However, all three locations struggled following the COVID-19 pandemic and declining moviegoer numbers, with the San Francisco venue closing in 2023 and Buena Park shuttering earlier this year.
Rather than expanding physical locations, CJ CGV is now betting on technology licensing through its subsidiary CJ 4DPLEX, which develops 4DX motion seats and ScreenX panoramic projection systems. The division generated record revenues of $55 million in North America during the first half of 2024, representing a 47% increase year-over-year.
The strategic shift comes as CJ CGV implemented a voluntary retirement program affecting around 80 employees in response to ongoing business challenges and stagnant recovery in its home market, where total box office dropped 5.6% in 2024.
