It was the first meeting with representatives from the broadcasting industry. After exchanging greetings, a participant encouraged me, saying, "You can understand the industry well in just six months."
He added, "The broadcasting industry doesn’t change much." This remark highlighted the current stagnation of the industry, which has seen little progress over the years, and pointed to a future that may remain unchanged.
In contrast, the external environment surrounding broadcasting is evolving rapidly. The rise of over-the-top (OTT) services has transformed how consumers engage with content. Unlike the past, when viewers would sit in front of the television at a set time, they now consume content whenever and wherever they choose.
Artificial intelligence (AI) technology is also impacting content planning, production, and distribution. Conversations among friends now predominantly revolve around OTT platforms and short-form dramas, rather than discussing specific programs from traditional broadcasters.
The issue lies in the fact that broadcasting regulations and policies, which have been in place for decades, are not adequately responding to this rapidly changing environment. The regulations and obligations imposed on broadcasters are still based on past market conditions. Industry calls for reform to align regulations with current realities are frequent, yet tangible improvements remain slow.
A prime example is the Broadcasting and Communications Development Fund (BCDF). The cable TV sector is struggling with declining viewership and subscriber loss due to OTT services, leading to worsening profitability and management difficulties. However, the collection rate for the BCDF from multi-channel video programming distributors (MVPDs) has remained at 1.5% of broadcasting service revenue since 2017.
In 2024, the total operating profit for MVPDs is projected to be 14.8 billion won, while the BCDF contribution is expected to reach 23.9 billion won. The fund's contribution exceeds the total operating profit of the industry. Recently, the cable TV sector has filed a lawsuit against the Korea Communications Agency (KCA) to cancel the BCDF contribution assessment, demanding reform of the system.
Last year, the Ministry of Science and ICT considered lowering the BCDF collection rate, but due to organizational restructuring, the matter was transferred to the Broadcasting Media and Communications Commission (BMCC). This year, the BMCC is examining the issue through related research, but it remains to be seen if this will lead to change.
The National Assembly shares this perspective. During the National Assembly's Science, Technology, Information, Broadcasting, and Communications Committee's audit on the 12th, calls for reform were voiced. Some lawmakers pointed out that broadcasters are burdened by regulations and fund obligations designed for past market conditions, urging the BMCC to make improvements. Kim Jong-cheol, the chair of the BMCC, expressed his commitment to comprehensive legislative efforts, including a unified media law.
It remains to be seen whether the issues repeatedly raised in the field will translate into actual policy and regulatory changes. However, this does not mean that there should be an unconditional demand for regulatory relaxation or burden alleviation for the stagnant broadcasting industry. Solutions must be sought to restore the industry's competitiveness through regulations and policies that align with the changed market environment and the conditions of broadcasters. The inherent values of the broadcasting industry, such as its 'public responsibility' and 'universality' accessible to all, are becoming increasingly important in the rapidly changing media landscape.
The earlier remark about understanding the industry in six months reflects the hope for revitalization alongside the improvement of outdated regulations. When looking at the broadcasting industry six months from now, it is hoped that it will not remain stagnant but will evolve into a more advanced broadcasting ecosystem.
He added, "The broadcasting industry doesn’t change much." This remark highlighted the current stagnation of the industry, which has seen little progress over the years, and pointed to a future that may remain unchanged.
In contrast, the external environment surrounding broadcasting is evolving rapidly. The rise of over-the-top (OTT) services has transformed how consumers engage with content. Unlike the past, when viewers would sit in front of the television at a set time, they now consume content whenever and wherever they choose.
Artificial intelligence (AI) technology is also impacting content planning, production, and distribution. Conversations among friends now predominantly revolve around OTT platforms and short-form dramas, rather than discussing specific programs from traditional broadcasters.
The issue lies in the fact that broadcasting regulations and policies, which have been in place for decades, are not adequately responding to this rapidly changing environment. The regulations and obligations imposed on broadcasters are still based on past market conditions. Industry calls for reform to align regulations with current realities are frequent, yet tangible improvements remain slow.
A prime example is the Broadcasting and Communications Development Fund (BCDF). The cable TV sector is struggling with declining viewership and subscriber loss due to OTT services, leading to worsening profitability and management difficulties. However, the collection rate for the BCDF from multi-channel video programming distributors (MVPDs) has remained at 1.5% of broadcasting service revenue since 2017.
In 2024, the total operating profit for MVPDs is projected to be 14.8 billion won, while the BCDF contribution is expected to reach 23.9 billion won. The fund's contribution exceeds the total operating profit of the industry. Recently, the cable TV sector has filed a lawsuit against the Korea Communications Agency (KCA) to cancel the BCDF contribution assessment, demanding reform of the system.
Last year, the Ministry of Science and ICT considered lowering the BCDF collection rate, but due to organizational restructuring, the matter was transferred to the Broadcasting Media and Communications Commission (BMCC). This year, the BMCC is examining the issue through related research, but it remains to be seen if this will lead to change.
The National Assembly shares this perspective. During the National Assembly's Science, Technology, Information, Broadcasting, and Communications Committee's audit on the 12th, calls for reform were voiced. Some lawmakers pointed out that broadcasters are burdened by regulations and fund obligations designed for past market conditions, urging the BMCC to make improvements. Kim Jong-cheol, the chair of the BMCC, expressed his commitment to comprehensive legislative efforts, including a unified media law.
It remains to be seen whether the issues repeatedly raised in the field will translate into actual policy and regulatory changes. However, this does not mean that there should be an unconditional demand for regulatory relaxation or burden alleviation for the stagnant broadcasting industry. Solutions must be sought to restore the industry's competitiveness through regulations and policies that align with the changed market environment and the conditions of broadcasters. The inherent values of the broadcasting industry, such as its 'public responsibility' and 'universality' accessible to all, are becoming increasingly important in the rapidly changing media landscape.
The earlier remark about understanding the industry in six months reflects the hope for revitalization alongside the improvement of outdated regulations. When looking at the broadcasting industry six months from now, it is hoped that it will not remain stagnant but will evolve into a more advanced broadcasting ecosystem.
* This article has been translated by AI.
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