'Content Usage Fee' Conflict Expands... SBS Suspends New VOD Supply to Skylife

[Asia Economy Reporter Seulgina Jo] The conflict over content usage fees and the resulting supply suspension has now spread to SBS and KT Skylife.

According to KT Skylife on the 17th, the company notified customers through its website that the supply of new SBS VODs was suspended as of midnight the previous day. The suspended VODs include new SBS dramas, entertainment, current affairs, and educational programs aired after the 16th. All SBS VODs up to the 15th of this month remain available.

KT Skylife stated, "This is due to SBS's notification of suspension of new VOD supply," and added, "We will do our best to normalize the service."

This measure was taken amid retransmission fee and content usage fee negotiations between the two companies. The parties are close to an agreement on retransmission fees, but there is currently a significant gap in their positions regarding VOD usage fees. KT Skylife is also negotiating usage fees with KBS and MBC. KBS and MBC content is being updated normally.

Inside and outside the industry, SBS's recent supply suspension is viewed as an extension of the conflict between CJ ENM and pay TV and online video services (OTT). CJ ENM, which had taken a strong stance by suspending mobile TV broadcasts to demand fair content compensation, appears to be expanding this approach to terrestrial broadcasters. Previously, the three terrestrial broadcasters raised the single-purchase price of VODs on IPTV providers, cable TV, and the OTT service Wavve by 550 won to 2,200 won.

The media industry has recently seen prominent conflicts over content revenue distribution. In particular, this month, CJ ENM suspended live broadcasts of 10 channels including tvN and Mnet on U+ Mobile TV, escalating the cable TV (D'Live) crisis that nearly led to a blackout last year and was barely resolved. This conflict is spreading across the industry, including OTT and IPTV. It is also the first case where a dispute over content usage fees between a telecom company and CJ ENM exceeded the negotiation deadline and led to broadcast suspension.

Moreover, CJ ENM and the three IPTV providers (KT, SK Broadband, LG Uplus) are also clashing over content usage fees not only for mobile but across IPTV platforms. CJ ENM demands a 25% increase compared to the previous year, while the IPTV providers maintain an unacceptable stance. Despite mediation by the Ministry of Science and ICT last month, CJ ENM publicly criticized the IPTV industry, saying "the IPTV providers are stingy in paying usage fees," and the IPTV Association retorted that CJ ENM is "full of arrogance and greed," intensifying the conflict day by day.

The Ministry of Science and ICT and the Korea Communications Commission, the relevant authorities, have stated that they respect autonomous negotiations between companies but warned that they will exercise legal authority if necessary to prevent infringement of users' viewing rights. The Korea Communications Commission said, "In cooperation with the Ministry of Science and ICT, we plan to comprehensively review user inconvenience caused by CJ ENM channel supply suspension, unfair practices during negotiations between businesses, and whether any prohibited acts under the law have occurred."

An industry insider said, "As the industrial landscape of broadcasting, content, and distribution rapidly changes, friction over revenue distribution is intensifying, but stakeholders' positions are sharply divided," adding, "If the conflict prolongs, it will inevitably harm viewers and have a negative impact on the overall market."

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