CJ ENM Notifies "No Broadcast Without Additional Payment"... Blackout Concerns

Demand for 15-30% Increase from Paid Broadcasting Operators

[Asia Economy Reporter Kim Heung-soon] CJ ENM is facing controversy after demanding a 15-30% increase in program fees from paid broadcasting operators such as IPTV and cable TV, even mentioning the possibility of transmission suspension.

According to industry sources on the 2nd, CJ ENM recently sent official letters proposing such an increase to paid broadcasting platforms including IPTV, cable TV, and satellite broadcasting. It is reported that CJ ENM even mentioned a 'blackout,' threatening to suspend the transmission of channels it provides (CH.DIA, M-Net, OCN, OCN Movies, OCN Thrills, OGN, O tvN, tvN, X tvN, OnStyle, Olive, JungHwa TV, Tooniverse) if negotiations stall.

The party most strongly opposing CJ ENM over this issue is the cable TV company D'Live, which received a 20% increase proposal. It is reported that if an agreement on the increase is not reached by the 17th, CJ ENM has notified that it will stop supplying programs and retrieve digital receivers.

A D'Live official stated, "We currently pay about 25% of the total program fees paid to program providers (PP) to CJ ENM," adding, "Compared to typical increase rates, the 20% excessive increase demand is difficult to accept." They further emphasized, "CJ ENM's notice to suspend channel transmission ignores the realities of the media industry and is a selfish idea pursuing its own interests unilaterally," and "Using viewer damage caused by channel suspension as leverage is something the media-related industry must never take."

In response, a CJ ENM official rebutted, "D'Live has demanded a freeze on program fees for the past four years and even reduced fees in 2018," adding, "More than 70% of platform companies have agreed or are negotiating contracts with increased program fees, but D'Live is not even responding to negotiations." They emphasized that the fee increase is an unavoidable decision, stating, "While paid broadcasting platforms have steadily increased retransmission fees for terrestrial and comprehensive programming channels, program fees for CJ ENM have remained frozen."

D'Live stated, "We will strive to reasonably determine the value of content and do our best to prevent harm to viewers." CJ ENM also said, "We hope to find a point of agreement as soon as possible."