Local Small Broadcasters in 'Crisis'... KCC to Reconsider Bundled Broadcasting Advertising Sales System

Terrestrial Broadcast Advertising Revenue Halved
Regional Small and Medium Broadcasters Subject to Consolidation Also in Crisis
Effectiveness of Consolidated Sales System Questioned
Research Team Launched This Month
Seeking System Improvement Measures

[Asia Economy Reporter Cha Min-young] As local small and medium broadcasters subject to combined sales face a crisis due to a decline in terrestrial broadcasting advertising revenue, calls for improvement of the broadcasting advertising combined sales system have grown louder.

The Korea Communications Commission announced on the 17th that it will operate the "Broadcasting Advertising Combined Sales System Improvement Task Force" to prepare improvement measures for the broadcasting advertising combined sales system.

Recently, advertisers, terrestrial broadcasters, and the National Assembly have raised the need for system improvement. Due to the decrease in terrestrial broadcasting advertising revenue, the support amount for local small and medium broadcasters subject to combined sales has decreased, and the effectiveness of the combined sales system, which supports local small and medium broadcasters, has weakened due to advertisers' reluctance toward combined sales. In May last year, a constitutional complaint was even filed against the broadcasting advertising combined sales system.

Total advertising revenue has been halved compared to eight years ago. The total terrestrial broadcasting advertising revenue, which reached 2.183 trillion KRW in 2012, dropped by 54.4% to 995.7 billion KRW. During the same period, combined sales advertising revenue also decreased by 55.9%, from 248 billion KRW to 109.2 billion KRW.

Accordingly, the Korea Communications Commission will fully review the combined sales system based on the grand principles of "publicness of broadcasting and balanced regional development." To establish a sound funding plan for local small and medium broadcasters, a task force composed of academia, legal experts, and industry representatives will also be operated.

First, based on the policy research results on combined sales conducted last year, the task force will analyze the system's achievements, limitations, and problems. It will comprehensively review various stakeholders' opinions, including external criticisms from the National Assembly and advertisers, and discuss alternative support measures for local small and medium broadcasters.

Additionally, the task force will conduct focused reviews by discussion topics and issues, and if necessary, hold hackathon-style intensive debates to prepare system improvement plans and legal amendments according to scenarios in anticipation of the Constitutional Court's rulings on constitutionality, unconstitutionality, or partial unconstitutionality.

The main discussion topics include ▲ support systems and methods according to types of local and small-medium broadcasters ▲ support measures through public funds ▲ other support measures such as improvements to the broadcasting fee system ▲ plans to reorganize broadcasting advertising sales methods if combined sales are abolished ▲ and promotion measures for advertising sales of local and small-medium broadcasters.

Through topic-specific discussions, the task force plans to derive system improvement measures to support and revitalize local and small-medium broadcasters within the second half of this year.

On the 17th, the Korea Communications Commission held the task force kickoff meeting to share the purpose of operation, research content, promotion direction, schedule, and to discuss major issues.

Han Sang-hyuk, Chairman of the Korea Communications Commission, stated, "The contraction of the broadcasting advertising market is leading to a reduction in support for local small and medium broadcasters. We expect that the Broadcasting Advertising Combined Sales System Improvement Task Force will contribute to revitalizing the broadcasting market by gathering diverse stakeholder opinions and preparing reasonable alternatives through major issue and topic-specific discussions."

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