Small and Medium PP Tense Over Expansion of Reorganization with the Emergence of 'Channel S'

IPTV and Satellite Broadcasters
Annual Channel Number Allocation Negotiations Around June
Numbers Below 60 Considered 'Golden Numbers'
Concerns Over Costs and Negotiation Power with Increased Restructuring Frequency

[Asia Economy Reporter Cha Min-young] SK Broadband has recently drawn attention to the upcoming June channel regular reorganization season by using the ad-hoc change card while scheduling Channel S, operated by its subsidiary. Small and medium-sized broadcasting channel operators (PPs) are expressing concerns about whether the previously narrowly blocked plan to increase the number of reorganizations last year will be quietly pushed again.

According to the related industry on the 23rd, the PP industry is focusing on whether SK Broadband, which launched Channel S on the 8th and carried out an ad-hoc reorganization, will conduct a regular channel reorganization ahead of the June regular reorganization season.

Every year, paid broadcasting operators such as IPTV and satellite broadcasting, along with broadcasting channel usage operators (PPs), begin negotiations on channel number assignments around June. Priority negotiations start with general programming channels, news channels, and home shopping, followed sequentially by small and medium PPs. Among nearly 1,000 channels, those below number 60 are known as the so-called 'golden numbers.'

The issue arose when SK Broadband scheduled Channel S, operated by its subsidiary Media S, and the regional specialty channel 'Channel S Dongne Bangne' on Btv on the 8th. In this process, Channel S was assigned number 1, and Channel S Dongne Bangne was assigned number 66, causing SBS Plus to move from the existing number 1 to 28, and MBC Every1 from 28 to 990. Under current law, paid broadcasting operators are limited to changing existing channels once a year.

The reason the PP industry reacts sensitively to individual companies' actions is that last year, the Ministry of Science and ICT specifically considered expanding the number of regular reorganizations from once a year to twice a year but scrapped the plan due to industry opposition. The more frequent the reorganizations, the more additional costs arise for PPs to comply, which increases the bargaining power of wired broadcasting operators. Frequent channel changes can also cause viewer inconvenience.

The Ministry of Science and ICT plans to monitor the issue later since there was no problem with the existing ad-hoc reorganizations themselves. Hwang Keun-byeol, Director of the New Media Policy Division at the Ministry of Science and ICT, said, "If additional requests come after ad-hoc reorganizations, we will examine whether there could be any issues with the regulations," adding, "No prior consultations have been received yet." An SK Broadband official stated, "If channel reorganization is necessary, we plan to proceed according to regulations in consultation with regulatory agencies and related PPs."

A representative of a small and medium PP company criticized, "The Ministry of Science and ICT has not said anything yet, so we are just watching for now," adding, "Global media companies continue their offensive, and there needs to be fundamental coexistence efforts to block this."