[Column] Conflict Over Home Shopping Transmission Fees, Government Remains Idle

The Korea Cable TV Broadcasting Association (KCTA) recently gathered reporters to announce the results of a survey showing that 69% of TV home shopping viewers make payments via mobile or internet rather than through phone consultations or ARS. Pay TV generates revenue by receiving transmission fees from home shopping channels, but the high proportion of mobile payments, which are difficult to track, has caused many operational difficulties.

Further investigation revealed that the conflict between cable broadcasters and home shopping companies appears to be a structural issue. Cable TV operators claim that home shopping companies hold the payment method data, making it difficult to accurately calculate revenue. On the other hand, home shopping companies argue that since mobile and online payments can be made outside of the broadcast time, it is hard to clearly identify cable TV’s contribution to sales. Although the government revised the "Home Shopping Broadcast Channel Usage Contract Standards" in March, the conflict over transmission fees between home shopping and pay TV industries has not been resolved at all. The government had intervened earlier to mediate by establishing contract standards, but the situation has not improved. Despite the change in contract standards, the core issue remains that the two parties must negotiate the calculation of fees for online and mobile payment sales.

Industry insiders argue that the government should take greater responsibility in resolving the issue. However, the government’s role has actually been reduced in the "Fee Verification Council," the mediation body for negotiations. The Ministry of Science and ICT, the relevant authority, responded to the cable broadcasting association’s research results with a general statement: "We will review whether it is meaningful, but we also need to consider the views of the other side, such as home shopping companies."

The association said it spent a month collecting data and conducting research. They made efforts to grasp the online and mobile sales of home shopping broadcasts, which are difficult to know accurately due to information asymmetry. Online and mobile payments, which are growing in scale, are not recorded as broadcast sales, but this is the first time evidence has been produced showing that many home shopping viewers actually make such payments. They appeal to how desperate the situation is.

To reach a reasonable consensus, it is appropriate to consider the opposing side’s position. However, under the pretext of listening to various opinions, is the government continuing to postpone the responsibility it should bear onto the industry?

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