SK to up IPTV users 7.1 mil. by 2015

Employees at SK Broadband try out the company’s in-house cloud streaming service at its headquarters in northern Seoul, Monday. / Courtesy of SK Broadband

By Kim Yoo-chul

SK Broadband, the broadband unit of SK Group, said Monday that it is aiming for 7.1 million Internet Protocol TVs (IPTVs) customers 2015 to solidify its leading position in the market.

The firm pointed out that steady improvement in the speed of broadband and the availability of interactive applications would play a crucial role in the expansion of the local IPTV market.

“We plan to expand our customer base in the coming years, including those subscribing to mobile IPTV,” said Lim Jin-chae, the head of the company’s new media division, in a news conference at its headquarters in northern Seoul.

This is the first time in four years that the SK affiliate held an official press conference as the company’s IPTV business has so far been experiencing steep falls in profit.

Mentioning the popularity of its converged wire- and wireless-related services, the executive said the firm added 147,000 customers in 2011 and 520,000 in 2012.

“Since last year, we have been aggressive in fostering our IPTV business by releasing more product variants at an affordable price. Amid the bullish momentum, we will definitely collaborate with our sister company _ SK Telecom _ to expand the market,” Lim told reporters.

In accordance with the upbeat business plan, it plans to begin its “Cloud Streaming Service” from June 2 whereby customers can experience various video games on TVs via the company’s set-top boxes.

The streaming service automatically transmits data provided by servers. Set-top boxes function as a gateway, meaning IPTV users do not need to install new set-top boxes for the advanced streaming service, Lim said.

“With low-end set-top boxes, the company could provide high-end Web-connected services. Major carriers in Europe and the United States have an interest in expanding their own cloud-based streaming services,” the executive said.

He added that the aim to triple the number of IPTV customers in the next two years was “highly achievable.” As of the end of April this year, SK had 2.2 million IPTV subscribers. Among them, 600,000 are using the company’s mobile IPTV services.

During the conference, Lim said the company will introduce a premium set-top box for users who are willing to pay for distinguished streaming services.

He said the upcoming set-top box will be powered by Google’s Android software and home controlling-related services will be included.

The firm’s move comes as improving capacity and quality of wire-line and wireless broadband networks has enabled many telecom companies to offer the so-called TV Everywhere (TVE) services on multiple screens.

Shares of SK Broadband advanced 0.38 percent to end at 5,230 won, Monday.