The home shopping fees, a crucial revenue source for the paid broadcasting market, are predominantly allocated to IPTV (Internet Protocol Television), which is undermining the financial stability of cable TV (SO). With both the fees and broadcasting revenues declining, there are increasing calls for regulatory reforms, especially as public obligations, such as operating local channels, remain unchanged.
According to the National Data Agency's broadcasting industry survey microdata released on June 29, the total home shopping fees rose from 1.8278 trillion won in 2020 to 2.4499 trillion won in 2024, marking a 34% increase.
While overall home shopping fees have increased, the share for SO has actually decreased. SO's home shopping fees fell from 745.8 billion won to 732.2 billion won, a 2% decline during the same period. Broadcasting revenues also shrank from 2.0227 trillion won to 1.7335 trillion won, a 14.3% decrease.
In contrast, IPTV saw its home shopping fees surge from 906.4 billion won to 1.5405 trillion won, an increase of nearly 70%, fueled by a rise in subscribers. IPTV's share of total home shopping fees expanded from 49.6% to 69.2%. Its broadcasting revenues also grew by 29.8% to 5.0072 trillion won. Consequently, the revenue gap between IPTV and SO widened from 1.91 times to 2.89 times.
Current home shopping fees are calculated based on subscriber numbers and sales performance. As subscribers shift to IPTV, the fees have concentrated there, while SO, facing a decline in subscribers, is losing its key revenue source.
Despite the shrinking revenue, SO continues to bear public obligations. Under the broadcasting law, they are required to operate local channels. In 2024, SO spent approximately 125.6 billion won on local channel production, which accounted for over 7% of their total broadcasting revenue.
The burden of the Broadcasting Development Fund is also significant. In 2024, SO's total operating profit was only 14.8 billion won, while the fund's burden reached 23.9 billion won, amounting to 168% of their total operating profit.
A representative from the cable TV association stated, "SO not only has a legal obligation to operate local channels but has also shouldered the public role of fostering local discourse and providing disaster and community information over the past several decades. To maintain the public nature of local media, regulatory improvements and policy support for SO are essential."
* This article has been translated by AI.
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