By Chung Hyun-chae
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TNmS CEO Min Kyung-sook talks about researching viewer ratings at her office in Songpa-gu, southern Seoul. Korea Times photo by Chung Hyun-chae |
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However, those who sat in front of their TVs every Friday and Saturday to watch the drama might ask the question: Why are nationwide viewer ratings measured?
Min Kyung-sook, CEO of Total National Multimedia Statistics (TNmS), provided an answer.
"Measuring audience ratings is very important work because the information provides insight into the country's media industry," Min told The Korea Times' Business Focus at her office in Songpa-gu, southern Seoul.
As audiences are part of society, research into audience viewing is on a par with social research, according to Min.
"It is crucial that measuring Korean audience ratings is conducted by a domestic firm," said Min who regards information as a key factor among four that determine national power: "diplomatic," "information," "military" and "economic" power.
TNmS is one of two audience-rating companies in Korea along with the multinational Nielsen Company, which measure television viewer ratings and conduct surveys to provide insightful reports on viewer habits to advertising agencies and broadcasting companies.
Throughout the interview with Business Focus, Min stressed that it is important that domestic companies should develop new business models with audience-rating information and export them to other countries.
Audience rating business
When TV broadcasting first began in the United Kingdom in the 1930s, what the BBC and other broadcasting companies that followed wanted to know most was who was watching their programs. In particular, commercial channels funded by income from advertisers, sought to secure audience information to boost their finances.
Viewer rating research companies were founded as demand for consumer information grew. Rating methods have evolved from "telephone recalls," a method of asking people which programs they watched over the phone, to use of the "peoplemeters," machines that automatically record household ratings.
Building competitiveness
When Min founded TNmS Media Korea in 1998, MSK, Korea's first viewer rating research firm, was the sole player in the business. MSK only had 300 household panels living in Seoul back then. Min said concerns about data sovereignty prompted her to establish TNmS.
"I foresaw that MSK could not be a long-term player because 300 panels were insufficient to conduct media audience-rating research. There was a high possibility that foreign companies could take over. I thought putting the research into the hands of foreign companies was like relying on food aid and that a domestic firm should conduct research on the Korean audience," said Min.
After Min founded TNmS Media Korea, AC Nielsen joined the industry, taking over MSK.
TNmS initially surveyed audience ratings of cable channels, Skylife, IPTV, VOD, and mobile devices in Korea, despite the low rate of cable TV subscribers.
"Without a doubt, I saw that the cable television industry would grow although the proportion of cable TV subscribers tallied at only 5 percent at that time. We started surveying cable TV audience ratings for the first time in Korea and also increased the number of households to 1,000 located in six metropolitan districts," said Min.
The company has also been adapting to the rapidly changing media industry. The majority of commuters nowadays watch television programs on their smartphones.
Korea's IT industry has gained global competitiveness from products made by global players such as Samsung and LG. The country also has the highest Internet usage in the world. Min said that this provides an optimal platform for a new business model.
"Korea is no longer a fast follower, but has emerged as the first mover in terms of IT technology. It is now high time to invent business models applying IT and export them," she said.
Expanding into developing countries
The company's most recent achievement is the creation of the world's first audience-rating measuring method that utilizes a mobile phone application called "MR Application." This automatically measures audience ratings once it is downloaded to mobile phones. It has addressed the inconveniences of former methods such as having to conducting surveys.
TNmS has already made inroads into 48 foreign countries including the U.S., China, India and a number of European countries with self-developed measuring methods and business models such as the "MR Application."
"We are now communicating with Israel which has outstanding technology but is yet to build a corresponding social environment. Despite its lack of infrastructure, Israel is investing to develop technology for the future," said Min.
For those who have insufficient technology, TNmS is helping them by providing technical assistance through research and business models.
However, while Korea is ahead of overseas markets both in terms of technology and the speed of consumer evolution, the country has been struggling to incorporate its cutting-edge technology into new business models.
"If the country fails at creating business models with the great infrastructure we have built and hand over market research of our society to a foreign entity, this will not be in the best interest of the country," Min said.
"What foreign companies want is how to create additional value for their own countries," she continued.
For example, as Digital Multimedia Broadcasting (DMB) isn't widely serviced in the U.S. where a majority of its people uses digital video recorders (DVRs), U.S. viewer's rating research company Nielsen does not conduct a DMB audience rating survey in Korea.
"We must not sit back and let foreign entities take over. It has to be Korea that makes the best of our excellent infrastructure," said Min.
In need of government support
At the same time, Min called for government attention and support.
"Without government aid, TNmS cannot gain credibility from buyer countries," she said.
Even though Korea has remarkable IT technology, if the government works with a foreign company, overseas markets may underestimate the ability of domestic firms, according to Min.
"It is the same for Samsung Electronics. If their smartphone is a poor-seller in Korea, it is hard to export it to the global market," said Min.
"I hope the government will strengthen the concept of data sovereignty. By measuring the ratings, the company can analyze which kind of programs people opt for in the past and present. It allows the company to observe the people's changing values and lifestyle. And that means it is possible to take a close look into society," said Min.
"Korea is poised to provide advanced business models. Now is the time," she added.