By Kim Tong-hyung
Staff Reporter

Internet protocol television (IPTV) is gathering hype as home entertainment and Internet companies seek a share of the potentially lucrative market.

IPTV, or the delivery of TV content through broadband networks, offers subscribers advanced features like video-on-demand, online shopping, games and other interactive services in addition to traditional broadcasting.

With the Korean Communications Commission looking to fast track the licensing process, the next-generation TV service is slated for commercial launch in October. KT, the country's largest fixed-line telephony and broadband provider, and Hanarotelecom are among the companies interested.

NHN, the operator of the country's leading Web portal Naver (www.naver.com) and popular online game site, Hangame, said it hopes its dominance on desktop computers can also extend into the living room.

The company will release five of Hangame's popular games on KT's ``Mega TV" service by the year's end. Mega TV now provides video-on-demand but not live broadcasting.

NHN will also experiment in integrating Naver's search service with KT's IPTV program.

SK Communications, the provider of Cyworld Weblog services, will soon provide search services using the search engine of Empas (www.empas.com) through Hanarotelecom's ``Hana TV'' this month.

The company is also considering providing a video search service like Youtube and other searches on IPTV.

Though the interest of portal companies in IPTV is real, how big a slice of the pie they are looking at is unclear.

The boundaries between telecommunications and broadcasting are blurred in IPTV. The communications commission has attempted to find a balance of interest among telecommunications carriers, terrestrial broadcasters, cable television stations and Internet companies in the regulatory framework for the new service.

Telecommunications operators led by KT are expected to dictate the IPTV market. The commission will ease regulations on condition that they can refuse leasing their network to other companies interested in broadcasting.

The country's three main TV networks ― KBS, MBC and SBS ― and cable TV operators like CJ are also expecting fat paychecks from telecom operators in exchange for content.

The business prospects for portals, however, are debatable.

Companies like NHN and SK Communications hope to profit by extending their subscriber-based services to TV and increase sales from search-related ads.

Daum, the operator of the popular portal Daum (www.daum.net), has bigger ambitions than its Internet rivals given its bid to become an IPTV operator. Earlier this year, Daum paired with device maker Celrun to establish the joint venture Open IPTV. Open IPTV will provide content based on an ``open platform" and allow programs to be aired on a variety of devices, not just set-top boxes.

thkim@koreatimes.co.kr