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A fee verification council assessing the fairness of contracts between home shopping channels and pay-TV operators over TV home shopping transmission fees will be launched this week. As the conflict over transmission fees between the two operators has deepened recently, attention is focused on whether the government-led fee verification council can reach a consensus. The industry plans to watch the situation with a mix of 'half expectation, half concern.'

According to the Ministry of Science and ICT on the 5th, the fee verification council between NS Home Shopping and LG Uplus will be held this week. The fee verification council has never been convened since the basis for operating the 'Home Shopping Transmission Fee Verification Council' was established in 2020. Although the regulation existed, it was effectively without power. Then, in March this year, specific conditions for convening the council were established through the 'Home Shopping Broadcast Channel Usage Contract Guidelines,' and at the request of NS Home Shopping in mid-August, it is set to be launched for the first time. Although there were rumors that it would be held in early last month, it was delayed by a month due to the time required to compose the list of stakeholders who should be excluded from the council.

The fee verification council cannot determine whether the transmission fee is appropriate. This is because it first examines whether fairness was properly maintained in the basic negotiation (5 months) and additional negotiation (3 months) contracts, and whether the data applied in the formula was appropriate. According to the fundamental principle that fees are determined through negotiation between the two operators, the government cannot impose a specific fee rate.

Nevertheless, the operation of the fee verification council is attracting attention because the government is stepping in amid a situation where a 'blackout'?a broadcast transmission suspension caused by fee conflicts between operators?could become a reality. A home shopping industry official said, "Since the council verifies whether there were problems in the process, it is unlikely that new alternatives or government-enforced fee rates that both sides can agree on will emerge. However, since the advice of government agencies cannot be completely ignored, we are watching the situation closely."

The Ministry of Science and ICT recently proposed a mediation plan to resolve the fee conflict. While expressing a stance to refrain from excessive market intervention, it reflects a determination to prevent blackouts to protect viewers' rights. Last month, the ministry sent consent forms to home shopping companies and pay-TV operators who had notified the provision or suspension of broadcast channels during transmission fee negotiations, instructing them to determine the fee rate through a mediation method based on Major League Baseball (MLB) arbitration. The two companies involved in the fee conflict are to make final proposals, and the ministry's mediation committee will decide by majority vote in favor of one side. This method is derived from the MLB salary negotiations where a majority vote favors either the player or the club owner. If agreeing, the CEO's statement must be included in the consent form submission, but no one has submitted the consent form yet. A ministry official explained, "In situations where transmission suspension is imminent, we want to create an additional safety device called the MLB method to protect viewers. Although it is based on consent and cannot be enforced, the goal is to support smooth agreements to protect viewers' rights as much as possible."

Currently, the transmission suspension is imminent between Hyundai Home Shopping and KT Skylife. If the contract is not renewed soon, live broadcast transmission will be suspended on all KT Skylife pay-TV services starting October 20. Previously, Lotte Home Shopping and D'Live Gangnam, who had decided to suspend transmission due to fee conflicts, reached a dramatic agreement ahead of the broadcast suspension on October 1. Hyundai Home Shopping and LG HelloVision also agreed to maintain transmission, and CJ OnStyle and LG HelloVision, who had shown sharp confrontations, are confirmed to be finding a consensus.

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