Lee Hyo-sik is Finance Desk editor at The Korea Times. He manages finance-related stories on macroeconomics, banks, stocks, bonds, crypto etc. He is passionate about covering what's happening in Korea's financial industry and explaining it to both Korean and non-Korean readers. You can reach him at leehs@koreatimes.co.kr. Your insights and feedbacks are always appreciated.
Cable TV operators threaten terrestrial programming
By Lee Hyo-sik
Cable TV operators have threatened to stop airing both digital and analog terrestrial programs all together if broadcasters do not accept their demands over transmission fees.
At a press conference in Seoul, Tuesday, heads of four cable TV stations said they will consider halting the transmission of low-quality analog terrestrial broadcasts unless their demands are met.
Cable operators have already stopped the retransmission of high definition (HD) programs of three terrestrial broadcasters at 2 p.m. Monday, forcing their subscribers to watch KBS, MBC and SBS programs through standard definition (SD) channels.
``Terrestrial broadcasters are now asking us to pay for airing their HD channels. But they may also demand we pay for their SD channels. Broadcasters should come to the negotiating table to resolve the current stalemate,’’ Hyundai HCN CEO Kang Dae-kwan said.
Kang said if KBS, MBC and SBS continue to refuse to talk with cable TV operators over transmission fees, cable operators will consider stopping the airing of terrestrial SD programs on their channels.
The move came a day after Cable TV operators stopped airing programs in high definition forcing some 7.7 million viewers nationwide to watch lower-quality terrestrial broadcasts.
Terrestrial broadcasters and cable TV stations failed to agree on how much the latter should pay the former for airing public channel programs.
Cable channels that used to air KBS, MBC and SBS, programs in high definition have been blacked out with a message that reads: ``We stop transmitting HD broadcasts as MBC, SBS, KBS2 demanded the transmissions be discontinued.’’
As a result, 5 million out of 11 million analog cable TV subscribers have no choice but to watch low-definition terrestrial broadcasters’ programs, while 2.7 million out of 4 million digital cable TV subscribers also must accept the stoppage of HD transmission.
Terrestrial TV broadcasters and cable TV operators negotiated for cable stations to pay 100 won per subscriber for retransmission fees to terrestrial broadcasters.
Stern action warned
Terrestrial broadcasters insisted cable operators pay fees for all their subscribers, while cable stations are willing to offer commissions only for those who newly subscribe to the services following the agreement.
With the unprecedented halt of HD broadcasting, the Korea Communication Commission (KCC) has begun pressuring both sides to come to an agreement. It has demanded cable stations immediately resume the retransmission of HD terrestrial programs.
``Our top priority is to ensure that households have access to high definition TV programs. We will take stern action against this disruption,’’ a KCC official said. ``At the same time, we will play a mediator role to produce an outcome that satisfies both sides.’’
In April, SBS stopped the transmission of its HD programs to SkyLife subscribers, following a dispute over retransmission fees. For 48 days, about 480,000 households were forced to watch SBS programs in SD.