Cable TV operators face market uncertainty

By Lee Min-hyung

The nation’s cable TV industry is facing growing market uncertainties in the face of a series of setbacks, including a fierce rivalry from IPTV operators.

“We are going to announce our specific blueprint this month to tackle the gloomy outlook cast on the cable industry following the failed merger plan of CJ HelloVision (CJH) by SK Telecom,” said Park Seung-bum, general manager at the Korea Cable Television Association (KCTA), the representative body of more than 190 cable TV operators across the nation.

The controversial merger plan ended in failure after the Fair Trade Commission (FTC) rejected it in July. CJH, the nation’s top cable TV operator, previously said the merger was a company bid to find the next growth areas, in collaboration with Korea’s top mobile carrier.

Both sides were keen to establish a next-generation media platform as part of efforts to tap into the new and promising revenue source.

The move came when the nation’s cable TV industry was at a crossroads over the lack of new growth engines. Critics said the sector has been declining because of the internet’s rise.

With IPTV gaining popularity, mobile carriers here have released bundled products combining their telecom and IPTV services, dealing a blow to cable TV operators.

“But more than 10 million users in Korea are still subscribing to cable TV services,” the KCTA spokesman said. “Following the recent disapproval by the FTC, we realized a more specific roadmap should be drawn, not just for our customers, but for the industry’s development itself. Later this month, we will present our suggestions to the government and unveil ways to tackle the growing market uncertainties.”