“Terrestrial broadcasters ask for retransmission fees to rise, content value is cut in half”
Although the value of terrestrial content has declined, it is pointed out that the cost of using it is increasing.
Professor Kim Yong-hee of Dongguk University said at the Korea Journalism Society’s academic conference held in Jeju on the 19th, “As a result of examining the elasticity of terrestrial content’s advertising viewership and changes in usage rates since 2013, the value of terrestrial content declined by 52.69%, and the value of terrestrial FOD (free VOD) decreased by 52.69 % . ” It fell by 68.69%,” he said.
Kim Yong-hee, professor at Dongguk University, ‘Measures to Establish Content Transaction Order for Sustainable Growth in the Pay-Broadcasting Market’
The paid broadcasting industry receives and retransmits terrestrial content. Instead, it pays terrestrial broadcasters a monthly retransmission fee ( CPS ) per subscriber. The retransmission fee started at 280 won in 2012 and continues to rise.
It is known that terrestrial broadcasters demand a retransmission fee of around 500 won per channel from the general cable broadcasting company ( SO ). Compared to 2012, when it was 280 won, the value of terrestrial channels has doubled. Professor Kim said ,
“The number of subscribers to pay-TV platforms has increased by 4.37% every year, and SO has hardly decreased since 2016.” The opinion is unreasonable안전놀이터,” he pointed out. He added, “It is questionable whether terrestrial content is playing the role of an intermediary that enhances the marketability of the paid broadcasting platform.”
Kim Yong-hee, professor at Dongguk University, ‘Measures to Establish Content Transaction Order for Sustainable Growth in the Pay-Broadcasting Market’
Conflicts between the assertion that broadcasting channel users ( PPs ) do not receive appropriate fees and that paid broadcasting platforms cannot increase wages indefinitely are repeated every year. The government enacted the “Terrestrial Broadcasting Retransmission Negotiation Guidelines” in 2016 to mediate the age-old conflict over terrestrial retransmission fees, but the industry consensus is that it is ineffective.
The Ministry of Science and ICT, the responsible ministry, is reviewing the calculation standard for Channel University. The plan is to set up a system and standards to establish a reasonable basis by listening to the opinions of each business operator as much as possible without setting a specific time limit.
Professor Kim said, “It is desirable to have a proposal for autonomous negotiation between the parties that only stipulates the negotiation process of the price calculation standard and the factors to be considered in calculating the price, but (now) the government needs active intervention and monitoring.” A third-party verification plan for evaluation data, including support and viewership, must be prepared.”
