Ahead of 'Government Mediation'... CJ ENM and D'Live Still Show Temperature Gap

[Asia Economy Reporter Kim Heung-soon] The government has decided to mediate as CJ ENM and cable TV operator D'Live remain at an impasse over the issue of program usage fee hikes. This move aims to prevent user harm amid talks of a 'blackout'?the suspension of channels provided by CJ ENM. Both companies agree on the need for negotiations but continue to show significant differences over detailed measures.

According to the Ministry of Science and ICT on the 6th, representatives from CJ ENM and D'Live are scheduled to meet this week to discuss ways to avoid the extreme scenario of broadcast suspension. However, government mediation cannot prioritize any one party’s position and holds no legal binding power, making an actual agreement unlikely. Ultimately, narrowing the gap between the two companies’ stances is crucial for reaching a settlement.

Both sides express a desire to find common ground as soon as possible to prevent viewer harm, but remain distant on the proposed program usage fee increase. CJ ENM, which supplies programs to cable TV and other broadcasting platforms, explained, "In March, we proposed a 20% fee increase to D'Live, but it was rejected. Even after lowering the proposed increase, the other party repeatedly demanded a freeze, resulting in no progress in negotiations."

According to CJ ENM, D'Live has repeatedly demanded a freeze on program usage fees over the past four years and even reduced fees in 2018, making further freezes unacceptable. D'Live countered, stating, "We judged CJ ENM’s 20% fee increase demand to be excessive and responded through official letters. It is a unilateral action to claim that we did not engage in negotiations and to mention suspension of broadcasts."

Both parties agree that "since this is a corporate dispute, the issue should be resolved through negotiations," but neither has clearly stated whether they will actually set up a negotiation table.

Meanwhile, the conflict between the two companies became public recently when CJ ENM sent official letters demanding a 15-30% increase in program usage fees to paid broadcasting operators including Internet Protocol TV (IPTV), cable TV, and satellite broadcasters. CJ ENM reportedly notified that if negotiations are not concluded by the 17th, it will suspend program transmission, citing D'Live’s refusal to engage in talks as the problem.

This content was produced with the assistance of AI translation services.