Sick portal due to You Tube monopoly & government regulation & reverse discrimination in ‘3 medium and premium’
Jin Hyun Jin | 2jinhj@ | 2018-02-06 11:11:50
Naver & Kakao, a Korean operator, faced a crisis as Google You Tube increased its market dominance. In this situation, the National Assembly is in fact introducing legislation to deepen regulatory and anti discrimination among domestic companies. It is expected that the Internet deregulation project will be implemented with the initiative of the Internet Win-Win Growth Council and the Ministry of Science, Technology and Information, led by the Korea Communications Commission this month, but it is questionable.
According to market researcher Nielsen Korean Click on February 5, YouTube`s web ？ app video service market share rose to 74.9% in December from 74.6% in October and November of last year. According to their stay, domestic users spend more than 300 million minutes a month on YouTube.
Meanwhile, Naver TV, Africa TV, and Kakao TV, which are native Internet operators, accounted for only 1.9%, 4% and 0.1% respectively in December last year. Even Naver TV did not maintain its 2.6% share in October last year, and it has fallen sharply.
YouTube is also increasing its market share in the video advertising market. Last year based on its market share in the video service market, YouTube`s advertising revenue reached KRW 165.6 billion, a market share of 38.4 %, according to data released by a specialist in the digital marketing industry, mezzo-media. Meanwhile, Naver`s market share in the video ad market was 11.2% (48.4 billion won) and Cacao was 8.3% (35.8 billion won), accounting for only 19.5% of the total. Considering that the two companies accounted for 23.4% of the market in 2016, the decline in the video market competitiveness has led to a decrease in sales, which is a 3.9% decrease over the year.
Meanwhile, the Korean video market has already been dominated by YouTube, but the National Assembly is pushing for a bill to further crack down on domestic operators struggling to survive. First, the New Normal Act, which regulates portal operators to the same level as mobile carriers, has been initiated. Recently, the Fair Trade Commission has introduced a provision clause that allows them to investigate the shopping services operated by operators such as Naver and Auction.
Especially, Kim Sung-tae, a pro-free Korean politician, proposed a new concept of `post-net neutrality` and proposed extending the charge sharing to `B2B market`. This will be interpreted as an intention to impose net fees for domestic Internet operators. In the industry, there are worries that foreign companies will eventually fall out and only domestic Internet operators will incur costs.
The Korean government is planning to start full-fledged action to eliminate discrimination against domestic internet operators during this month. However, in the industry, it is pointed out that the longer the discussion time, the faster the market dominance of YouTube.
The Korea Communications Commission plans to form an `Internet Win-Win Partnership` with the participation of Naver, Kakao and Google in this month. Rather than tightening regulations, the goal is to make the playing field flat by tilting the regulations. The Ministry of Information and Communication said it will launch a long-term project involving the Internet startup industry this month. From the field, it plans to find cases of problems caused by regulations and to discuss for deregulation.
However, there is a doubt about the effectiveness of the regulation, while the government is contrary to the deregulation.
An Internet company representative stated, "We have to comment on what the difficulties are in line with the government`s movements, and there is no reason to understand the current situation in accordance with the regulations of the National Assembly." The market is already moving to overseas operators, "It is only consuming energy to match the government`s taste."
By Jin Hyun Jin 2jinhj@
[ copyright ⓒ The Digitaltimes ]
According to market researcher Nielsen Korean Click on February 5, YouTube`s web ？ app video service market share rose to 74.9% in December from 74.6% in October and November of last year. According to their stay, domestic users spend more than 300 million minutes a month on YouTube.
Meanwhile, Naver TV, Africa TV, and Kakao TV, which are native Internet operators, accounted for only 1.9%, 4% and 0.1% respectively in December last year. Even Naver TV did not maintain its 2.6% share in October last year, and it has fallen sharply.
YouTube is also increasing its market share in the video advertising market. Last year based on its market share in the video service market, YouTube`s advertising revenue reached KRW 165.6 billion, a market share of 38.4 %, according to data released by a specialist in the digital marketing industry, mezzo-media. Meanwhile, Naver`s market share in the video ad market was 11.2% (48.4 billion won) and Cacao was 8.3% (35.8 billion won), accounting for only 19.5% of the total. Considering that the two companies accounted for 23.4% of the market in 2016, the decline in the video market competitiveness has led to a decrease in sales, which is a 3.9% decrease over the year.
Meanwhile, the Korean video market has already been dominated by YouTube, but the National Assembly is pushing for a bill to further crack down on domestic operators struggling to survive. First, the New Normal Act, which regulates portal operators to the same level as mobile carriers, has been initiated. Recently, the Fair Trade Commission has introduced a provision clause that allows them to investigate the shopping services operated by operators such as Naver and Auction.
Especially, Kim Sung-tae, a pro-free Korean politician, proposed a new concept of `post-net neutrality` and proposed extending the charge sharing to `B2B market`. This will be interpreted as an intention to impose net fees for domestic Internet operators. In the industry, there are worries that foreign companies will eventually fall out and only domestic Internet operators will incur costs.
The Korean government is planning to start full-fledged action to eliminate discrimination against domestic internet operators during this month. However, in the industry, it is pointed out that the longer the discussion time, the faster the market dominance of YouTube.
The Korea Communications Commission plans to form an `Internet Win-Win Partnership` with the participation of Naver, Kakao and Google in this month. Rather than tightening regulations, the goal is to make the playing field flat by tilting the regulations. The Ministry of Information and Communication said it will launch a long-term project involving the Internet startup industry this month. From the field, it plans to find cases of problems caused by regulations and to discuss for deregulation.
However, there is a doubt about the effectiveness of the regulation, while the government is contrary to the deregulation.
An Internet company representative stated, "We have to comment on what the difficulties are in line with the government`s movements, and there is no reason to understand the current situation in accordance with the regulations of the National Assembly." The market is already moving to overseas operators, "It is only consuming energy to match the government`s taste."
By Jin Hyun Jin 2jinhj@