Although the value of terrestrial content has decreased, it is noted that the cost of using it is increasing.
Professor Kim Yong-hee of Dongguk University said at the academic conference of the Korea Journalism Association held in Jeju on the 19th, “As a result of examining the elasticity of terrestrial content advertising viewership and changes in consumption rates since 2013, the value of terrestrial content decreased. 52.69%, and the value of terrestrial FOD (free VOD) fell by 52.69%.” It fell by 68.69%,” he said.
The pay broadcast industry receives and rebroadcasts terrestrial content. Instead, it pays terrestrial broadcasters a monthly retransmission fee (CPS) per subscriber. The re-transfer fee started at 280 won in 2012 and continues to rise.
Terrestrial broadcasters are known to demand a retransmission fee of around 500 won per channel from the universal cable broadcasting company (SO). Compared to 2012, when it won 280, 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 barely decreased since 2016.” The view is unreasonable,” he noted.
He added, “It is questionable whether terrestrial content plays the role of an intermediary that improves the marketability of the paid broadcast platform.”
Conflicts between the claim that broadcast channel users (PPs) are not adequately compensated and that pay broadcast platforms cannot increase wages indefinitely are repeated every year. The government enacted the “Terrestrial Broadcast 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 accounting standard for Channel University. The plan is to establish a system and standards to establish a reasonable basis by listening to the opinion 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 which only determines the negotiation process the price calculation standard and the factors to be considered when calculating the price, but (now) active government intervention and monitoring is needed.” A third party verification plan must be prepared for evaluation data, including support and viewership.”
Reporter Kwon Hye-mi hyeming@etnews.com
