Daum, Microsoft Team Up for Internet TV Market

Daum Communications Corp., South Korea's second-largest portal operator, said Tuesday that it has teamed up with global software giant Microsoft Corp. and local set-top box maker Celrun Co. to enter the local Internet TV market.

Under the three-way cooperation deal, Daum said it will provide contents and other know-how in operating the overall service, while Microsoft will offer its own internet-protocol TV (IPTV) solutions and focus on overseas marketing. Celrun will provide the necessary equipment for customers to use the Internet TV.

Internet TV is fast emerging as a significant alternative to the traditional way of watching TV programs, by allowing viewers to choose and view TV contents interactively via a broadband Internet connection.

Currently available services mostly consist of video-on-demand (VOD). Recently, a bill passed the National Assembly, allowing for a complete version of Internet-protocol TV (IPTV), under which customers will be able to watch not just VODs but also real-time contents including sports, dramas and news.

Daum plans to launch the Internet TV service, excluding real-time broadcasting, in the second quarter of this year at the earliest, it said in a press release.

Daum is the latest tech company to announce its bid to enter the fledgling but high-potential market. Hanarotelecom Inc., a fixed-line Internet operator, is the leader in the VOD Internet TV industry, holding around 800,000 customers, trailed by communications giant, KT Corp.