Cable TV Industry's Frustrations Despite Regulatory Easing

Ministry of Science and ICT Allows Wireless Services for Tablet PCs
Expectations for New Subscriber Acquisition
Concerns Over Dedicated Tablet PC Development Costs
Also Worries About Content Usage Fee Disputes

[Asia Economy Reporter Cha Min-young] Government regulations will be relaxed to allow wireless viewing of cable TV on devices such as tablet PCs, but the cable TV industry holds mixed feelings of optimism and pessimism. While the expectation of attracting new subscribers is positive, concerns remain over the development and distribution of dedicated tablet PCs and the burden from disputes over content usage fees.

On the 29th, the cable TV industry showed mixed reactions regarding the Ministry of Science and ICT's draft amendment to the "Technical Standards for Wired Broadcasting Station Equipment," which was announced for administrative notice on the 28th. The Ministry plans to expand the definition of subscriber terminal devices, currently limited to "set-top boxes that deliver broadcast signals to television receivers," to "devices that support viewing wired broadcasting services." Wireless access methods (Wi-Fi) will also be allowed in network connection standards to enable wireless transmission of broadcast signals to terminal devices.

First, it is positive in that it will be easier to attract new consumers in their 30s and 40s with young children who are familiar with smart devices. In particular, cable TV companies owned by the three mobile carriers strong in kids' content are expected to benefit. LG HelloVision has been providing LG Uplus's U+tv Kids service through Hello TV since March last year. SK Broadband also introduced the kids' content "Btv Gem Kids" through Btv Cable TV (formerly T-broad Cable TV).

On the other hand, the burden has increased as dedicated tablet PCs must be distributed to replace the set-top box role due to the cable TV industry's structure requiring terminal devices. Unlike IPTV's N-screen method, cable TV has a technical limitation that requires a terminal device capable of receiving broadcast signals. Additionally, there are concerns that disputes over content usage fees, which have not been resolved for existing TV content, will expand to tablet PCs. Both cable TV and IPTV are struggling with content providers such as terrestrial TV and broadcasting channel usage business operators (PP). Although an industry consultative body involving the Ministry of Science and ICT and the Korea Communications Commission was launched last year, it has failed to produce meaningful agreements, with only changes in members.

An industry insider said, "Existing cable TV companies have leased set-top boxes under contracts of 2 to 3 years, but now the target has simply changed to tablet PCs." Another industry source said, "The content usage fee dispute has not ended even on TV, and now it is expanding to tablet PCs, so it is indeed difficult. Given the rapidly changing content production environment, it is understandable that the PP side cannot back down."