Crisis of Small Cable TV Companies, Request to Transition Committee to "Stop Excessive Illegal Operations"

Suggestion at the Transition Committee Meeting

[Asia Economy Reporter Cha Min-young] It is reported that small and medium-sized cable TV operators (individual SOs) have requested the new government to curb unfair practices such as excessive giveaways and discount promotions by the three IPTV companies, which have a capital advantage in the paid broadcasting market.

According to the related industry on the 6th, individual SOs proposed measures to eradicate unfair practices in the paid broadcasting market, including this matter, at the 20th Presidential Transition Committee Industry Meeting held at the Korea Press Center in Jung-gu, Seoul, on the morning of the same day.

SO operators claim that the three IPTV companies affiliated with telecommunications firms combine their high-priced flagship products, such as mobile phones, with low-priced wired products like internet and broadcasting, using giveaways or free marketing to undermine cable TV businesses. Recently, they also argued that unfair practices continue through excessive cash, giveaways, and discount events targeting collective buildings such as lodging facilities, officetels, and dormitories in the broadcasting areas of regional small and medium SOs.

In the National Assembly’s Science, Technology, Information and Broadcasting Communications Committee, the "Small and Medium SO Support Broadcasting Act Amendment" was also proposed and passed the plenary session on December 2 last year. The Ministry of Science and ICT, the competent authority, is currently preparing the related enforcement ordinance amendment for the Broadcasting Act.

SO operators stated, "We requested the government to include provisions in this enforcement ordinance that eradicate unfair practices related to bundled products of the three IPTV telecommunications companies and create a turning point for regional small and medium SOs to coexist with the large telecommunications companies," adding, "The transition committee also asked to verify the process of institutional improvement."

SO operators also urged legal and institutional measures to establish a fair compensation system between small and medium SOs and large-scale content providers. The introduction of a fixed-rate content usage fee system and measures to resolve negotiation power imbalances are representative examples. It is also reported that they mentioned the necessity of support and protection so that regional SOs can become 'regional life platforms' that contribute to balanced local development and cultural preservation. Earlier, eight SOs including Geumgang Broadcasting, Seogyeong Broadcasting, and JCN Ulsan Central Broadcasting signed a content co-production memorandum of understanding (MOU) last month for regional coexistence.

The reason small and medium cable TV operators have made such requests is due to an industry crisis theory. The position of cable TV, once called the "golden goose," has weakened amid rapid changes in the paid broadcasting market. According to the Ministry of Science and ICT, the number of cable TV subscribers in the first half of last year was 13.04 million, a decrease of more than 180,000 compared to the second half of 2020. The gap with IPTV subscribers reached a record high of 6.33 million.

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