tcast·LG HelloVision Reach Program Usage Fee Agreement Through KCC Mediation

Acceptance of the Broadcasting Dispute Mediation Committee's Settlement Proposal

[Asia Economy Reporter Cha Min-young] The Korea Communications Commission announced on the 20th that the dispute over the broadcasting channel carriage agreement between T-cast and LG HelloVision has been resolved according to the mediation proposal of the Broadcasting Dispute Mediation Committee.

T-cast and LG HelloVision conducted negotiations regarding the broadcasting channel carriage agreement from March 2019 to 2020, but due to sharply conflicting interests over the program usage fees, they failed to conclude a contract by the end of 2020. Consequently, T-cast filed a broadcasting dispute mediation request with the Broadcasting Dispute Mediation Committee against LG HelloVision on January 13, 2021.

The Broadcasting Dispute Mediation Committee notified the mediation proposal, derived through a total of four meetings, to the parties involved on April 2, and both companies finally accepted it on the previous day (16th).

The Broadcasting Dispute Mediation Committee recommended that broadcasting channel carriage agreements should respect autonomous negotiations between the parties and advised reaching an agreement through at least two face-to-face meetings. Additionally, the committee conducted two sessions of opinion hearings and Q&A with the parties involved in the dispute.

The contents of the mediation proposal may influence negotiations between other pay broadcasters and broadcasting channel service providers (PP), and since both parties requested confidentiality due to business secrets, the details will not be disclosed.

Kim Chang-ryong, Chairman of the Broadcasting Dispute Mediation Committee, stated, “Given the recent vicious cycle of reduced investment and decreased sales caused by declining advertising revenue for broadcasters, disputes regarding appropriate program usage fees between content producers (PP) and platforms are expected to increase. We will strive to resolve disputes reasonably with the committee members to prevent any damage to viewers' rights to watch.”