The TV home shopping industry is grappling with a costly structure, spending 73 won out of every 100 won in broadcast revenue on broadcast fees. Despite a decline in viewership and intensified competition from e-commerce, the burden of fees paid to pay-TV operators remains high. In this context, the government plans to enhance its role in negotiating broadcast fees, raising hopes that this year's negotiations may alleviate some of the financial pressure.
According to the Korea TV Home Shopping Association, the total sales of seven home shopping companies, including GS Shop, CJ OnStyle, Hyundai Home Shopping, Lotte Home Shopping, NS Home Shopping, Home & Shopping, and Public Home Shopping, amounted to 18.5 trillion won last year, a 5.1% decrease from the previous year. This marks the fourth consecutive year of declining sales, with figures dropping below 20 trillion won for the first time in 2024 and remaining under that threshold for two years.
Broadcast revenue, the core business, also fell to 2.6 trillion won, a 0.9% decrease from the previous year. This represents a four-year decline and the lowest level since 2012. Overall revenue increased slightly to 5.6 trillion won, up 0.5%, but this was insufficient to offset the poor performance in the broadcasting sector. The combined operating profit of the seven companies was 392.6 billion won, a 1.0% increase, but still over 20% lower than the 502.6 billion won reported in 2022.
The aging customer base is becoming increasingly evident. The proportion of female customers in their 60s rose from 24.8% in 2024 to 29.9% last year, while the share of women aged 70 and older increased from 8.8% to 13.0%. Conversely, the percentage of women in their 40s and 50s, the key purchasing demographic, decreased from 43.8% to 36.9%.
Despite declining sales, the burden of broadcast fees remains significant. In 2025, the seven home shopping companies paid 1.9 trillion won in broadcast fees to pay-TV operators, slightly up from 73.3% of broadcast revenue the previous year to 73.4%. This means that for every 100 won in broadcast revenue, approximately 73 won goes to broadcast fees. Including five data home shopping companies, the total broadcast fees for all 12 operators reached 2.4 trillion won.
Sales for home shopping companies have been decreasing annually. The broadcast revenue of the seven companies fell from 3.0 trillion won in 2021 to 2.6 trillion won in 2025. The home shopping industry argues that as TV viewership and broadcast revenue decline, broadcast fees should also be reduced. However, pay-TV operators contend that mobile orders are influenced by TV broadcasts, and thus related revenue should be included in the fee calculations. There is also a disagreement over whether to exclude non-residential subscribers, such as offices and lodging establishments, from the subscriber base.
The Broadcasting and Communications Commission has been reviewing a plan to strengthen its role in fee verification and adjustment, as part of its 'Home Shopping Coexistence and Vitality Enhancement Plan' proposed in May. This has increased expectations for government mediation. Lim Kwang-ki, president of the Korea TV Home Shopping Association, stated, "The plan announced by the Broadcasting and Communications Commission is a groundbreaking policy shift that will ease the regulatory constraints on the home shopping industry. The government and all parties involved must work towards improving the negotiation environment for broadcast fees to be fairer."
However, it remains uncertain whether the proposed adjustments will lead to actual reductions in broadcast fees. Implementing the recommendations from the committee will require agreement between home shopping companies and pay-TV operators. An industry insider noted, "While regulatory relief is positive, fundamentally improving profitability will require a real change in the structure of broadcast fee negotiations."
* This article has been translated by AI.
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