The paid broadcasting market is struggling due to online video services (OTT) and outdated regulations, with analysts identifying a fundamental decline in service competitiveness as the core issue. Instead of focusing on regulatory improvements, there is a need to analyze why viewers are turning away from traditional TV and enhance service quality.
Cho Young-shin, CEO of Media Enter Research Institute, stated during a press briefing at the Korea Cable TV Broadcasting Association on September 29 that the current paid broadcasting industry is experiencing declining viewership and advertising revenue due to the rise of OTT platforms like Netflix. However, he emphasized that these are not the root problems.
He added, "The prices are high, the quality of service is low, and competitiveness is poor, which is causing the industry to shrink."
Cho argued that it is essential to analyze why users are not watching TV. He noted that a comparison between paid broadcasting and OTT reveals significant differences.
He pointed out, "Paid broadcasting is tied to scheduled programming and requires viewers to watch ads, while OTT allows users to binge-watch at their convenience. There is no reason to choose IPTV or cable TV over OTT." He also mentioned that while OTT services can be accessed on multiple devices simultaneously, the companion apps for paid broadcasting limit concurrent viewing, reducing competitiveness.
Cho assessed that the pricing structure of paid broadcasting is inadequate to compete with OTT. Users must purchase video-on-demand (VOD) separately for paid services, whereas OTT includes VOD in a monthly subscription fee.
To effectively compete with OTT, Cho stressed that platform operators and content providers must work together to lower program prices and improve broadcast quality. He proposed solutions such as creating a pricing system that competes with OTT rates, offering personalized advertising that users want, and consolidating VOD services from various broadcasters into a single platform. He also suggested adding time-shifting features to internet-based devices to allow users to watch at their preferred times.
Additionally, he called for discussions on regulatory relaxation to improve the paid broadcasting market, including adjustments to the Broadcasting and Communications Development Fund, transitioning to a negative regulatory framework, and promoting integrated media legislation. However, Cho urged, "Don’t just look to regulatory authorities; businesses should also take initiative in what they can do."
Cho Young-shin, CEO of Media Enter Research Institute, stated during a press briefing at the Korea Cable TV Broadcasting Association on September 29 that the current paid broadcasting industry is experiencing declining viewership and advertising revenue due to the rise of OTT platforms like Netflix. However, he emphasized that these are not the root problems.
He added, "The prices are high, the quality of service is low, and competitiveness is poor, which is causing the industry to shrink."
Cho argued that it is essential to analyze why users are not watching TV. He noted that a comparison between paid broadcasting and OTT reveals significant differences.
He pointed out, "Paid broadcasting is tied to scheduled programming and requires viewers to watch ads, while OTT allows users to binge-watch at their convenience. There is no reason to choose IPTV or cable TV over OTT." He also mentioned that while OTT services can be accessed on multiple devices simultaneously, the companion apps for paid broadcasting limit concurrent viewing, reducing competitiveness.
Cho assessed that the pricing structure of paid broadcasting is inadequate to compete with OTT. Users must purchase video-on-demand (VOD) separately for paid services, whereas OTT includes VOD in a monthly subscription fee.
To effectively compete with OTT, Cho stressed that platform operators and content providers must work together to lower program prices and improve broadcast quality. He proposed solutions such as creating a pricing system that competes with OTT rates, offering personalized advertising that users want, and consolidating VOD services from various broadcasters into a single platform. He also suggested adding time-shifting features to internet-based devices to allow users to watch at their preferred times.
Additionally, he called for discussions on regulatory relaxation to improve the paid broadcasting market, including adjustments to the Broadcasting and Communications Development Fund, transitioning to a negative regulatory framework, and promoting integrated media legislation. However, Cho urged, "Don’t just look to regulatory authorities; businesses should also take initiative in what they can do."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.