By Cho Jin-seo
Staff Reporter
KT is taking a big step into the broadcasting market with the commercial launch of its video-on-demand service ``Mega TV.''
The largest telephone and broadband line operator said Tuesday that it will begin to offer Internet Protocol TV (IPTV) to its Megapass broadband Internet service users across the nation. It has been offering test services in Seoul and nearby areas only.
Mega TV is expected to form a healthy rivalry with Hanaro Telecom's ``Hana TV'' service, which has secured more then 500,000 users and aims to double the number by early next year. KT also expects to draw 300,000 subscribers this year and to increase the number to one million next year.
``The Mega TV service is now available for 6.5 million Megapass customers all around the country,'' said Lee Young-hui, chief of KT's media business. ``As the product is now ready, we will launch promotion campaigns so customers can distinguish it from traditional TV.''
IPTV is a system where contents are delivered to TV by using broadband Internet lines and a set-top box, instead of using traditional TV antennas, cable boxes or satellite dishes. Users can select programs they want to watch and download the contents via the Internet at any time they want.
Hanaro Telecom has pioneered the field in South Korea since last year. The firm is expecting its IPTV service to make profits from the first quarter of next year.
Both companies also offer discounts for subscribing to the multiple package of broadband Internet, IPTV and telephone. KT said that each household can save 48,000 won when purchasing the Internet-IPTV package.
The new Mega TV service will offer a multitude of video-on-demand programming services, and a range of interactive TV services, including an electronic program guide. Many program genres are available, including movies, sports, culture, animation, documentaries, drama and educational content.
Research conducted during the Mega TV pilot phase revealed that 84 percent of target customers want to acquire the service when it becomes available.