Paid broadcasting share of KT affiliate exceeded 30%...Heating sum regulation extension controversy
Jung Yoon Hee | yuni@ | 2017-05-12 14:21:33
KT and KT SKYLIFE combined KT affiliates accounted for more than 30% market share of the total in the paid broadcasting market. In the paid broadcasting market, the combined market share of certain affiliated companies cannot exceed 33.33%. The KT affiliate has left 3.15 % points up to the upper limit. Based on the current trend, it is not expected to exceed the upper limit until June next year when the cumulative regulations are over.
However, as the government is expected to review the possibility of extending the related regulation, the controversy is likely to heat up. The Ministry of Science, ICT and Future Planning has already ordered research services related to cumulative regulation last month, and is now under the process of selecting an executing agency. Fierce controversy is expected by the end of this year, in the time of the results of the study are available.
According to the results of the investigation and verification of the number of subscribers of general cable broadcasting (SO, cable TV) , satellite broadcasting, and Internet multimedia broadcasting (IPTV) and the calculation of market share in the second half of last year which are revealed by Ministry of Science, ICT and Future Planning, 8 million 941, 349 people, accounting for 30.18% of the total market. That is about up to 0.33 % points (p) higher than last year`s 29.85 %. In consideration of the whole last year, it increased by 0.84% p. In simple calculation, it is expected to take over three and a half years to reach the upper limit of 33.33% for the KT affiliate.
Specifically, the number of subscribers of KT IPTV (Olleh TV) is 5,771,755 (19.50%) and KT Skylife (satellite broadcasting) is 3,164,174 (10.68%). The number of subscribers to `Olleh TV Skylife` offered by KT and Skylife is 202,000, which is calculated by dividing the number of KT with 930,000 and Skylife with 1.9 million.
In addition, CJ Hello Vision was 390,585 (13.29 %), SK Broadband 388,739 (13.10 %) and T Broad 325,689 (11.00 %). In the second half of last year, the average number of paying subscribers reached 29,627,554, an increase of 890,000 from the first half of last year.
Although the KT affiliate does not have to worry about figures right now, having the upper limit is a burden. There was a possibility that the regulation could be extended, which made the problem worse. Earlier, the Ministry of Science, ICT and Future Planning has announced plans for development of paid broadcasting, and will review whether the last of the cumulative regulation is extended and the level of regulation. The Ministry has already ordered the `Research on ways to improve the paid broadcasting market concentration phenomenon` through the Information Technology Promotion Center (IITP) last month. The research period is eight months from December. The Ministry plans to revise the regulations on aggregate and to improve the system such as abolition, extension, revision or imposition of additional obligation.
The aggregate regulation has sparked controversy from the beginning of the discussion. SK Telecom and SK Telecom, LGU Plus have been pushing for the introduction of the KT system as the excessive pre-regulation that limits corporate goodwill and consumer choice.
Meanwhile, the gap between cable TV and IPTV subscribers has narrowed in the second half of last year. Cable TV subscribers accounted for 13, 864,821 people (46.80%), 12, 593,760 people (42.52%) for IPTV, and 3,164,174 (10.68%) for satellite broadcasting. However, IPTV subscriber growth has slowed somewhat and cable TV subscribers have shifted from a decline to an increase. In the first half of last year, cable TV was 47.93% and IPTV was 41.25%.
The results of the subscriber verification excluded 110,000 subscribers in exceptional areas that can only be viewed by satellite broadcasting and 520,000 subscribers for maintenance contracts for common reception facilities. A representative of Ministry of Science, ICT and Future Planning said, "This result is calculated as a result of aggregate regulatory purposes and may be different from the number of subscribers used to sign subscriber base-based contracts in the paid broadcasting market."
By Jung Yoon Hee yuni@
[ copyright ⓒ The Digitaltimes ]
However, as the government is expected to review the possibility of extending the related regulation, the controversy is likely to heat up. The Ministry of Science, ICT and Future Planning has already ordered research services related to cumulative regulation last month, and is now under the process of selecting an executing agency. Fierce controversy is expected by the end of this year, in the time of the results of the study are available.
According to the results of the investigation and verification of the number of subscribers of general cable broadcasting (SO, cable TV) , satellite broadcasting, and Internet multimedia broadcasting (IPTV) and the calculation of market share in the second half of last year which are revealed by Ministry of Science, ICT and Future Planning, 8 million 941, 349 people, accounting for 30.18% of the total market. That is about up to 0.33 % points (p) higher than last year`s 29.85 %. In consideration of the whole last year, it increased by 0.84% p. In simple calculation, it is expected to take over three and a half years to reach the upper limit of 33.33% for the KT affiliate.
Specifically, the number of subscribers of KT IPTV (Olleh TV) is 5,771,755 (19.50%) and KT Skylife (satellite broadcasting) is 3,164,174 (10.68%). The number of subscribers to `Olleh TV Skylife` offered by KT and Skylife is 202,000, which is calculated by dividing the number of KT with 930,000 and Skylife with 1.9 million.
In addition, CJ Hello Vision was 390,585 (13.29 %), SK Broadband 388,739 (13.10 %) and T Broad 325,689 (11.00 %). In the second half of last year, the average number of paying subscribers reached 29,627,554, an increase of 890,000 from the first half of last year.
Although the KT affiliate does not have to worry about figures right now, having the upper limit is a burden. There was a possibility that the regulation could be extended, which made the problem worse. Earlier, the Ministry of Science, ICT and Future Planning has announced plans for development of paid broadcasting, and will review whether the last of the cumulative regulation is extended and the level of regulation. The Ministry has already ordered the `Research on ways to improve the paid broadcasting market concentration phenomenon` through the Information Technology Promotion Center (IITP) last month. The research period is eight months from December. The Ministry plans to revise the regulations on aggregate and to improve the system such as abolition, extension, revision or imposition of additional obligation.
The aggregate regulation has sparked controversy from the beginning of the discussion. SK Telecom and SK Telecom, LGU Plus have been pushing for the introduction of the KT system as the excessive pre-regulation that limits corporate goodwill and consumer choice.
Meanwhile, the gap between cable TV and IPTV subscribers has narrowed in the second half of last year. Cable TV subscribers accounted for 13, 864,821 people (46.80%), 12, 593,760 people (42.52%) for IPTV, and 3,164,174 (10.68%) for satellite broadcasting. However, IPTV subscriber growth has slowed somewhat and cable TV subscribers have shifted from a decline to an increase. In the first half of last year, cable TV was 47.93% and IPTV was 41.25%.
The results of the subscriber verification excluded 110,000 subscribers in exceptional areas that can only be viewed by satellite broadcasting and 520,000 subscribers for maintenance contracts for common reception facilities. A representative of Ministry of Science, ICT and Future Planning said, "This result is calculated as a result of aggregate regulatory purposes and may be different from the number of subscribers used to sign subscriber base-based contracts in the paid broadcasting market."
By Jung Yoon Hee yuni@