[Asia Economy Reporter Oh Su-yeon] On the 16th, the Ministry of Science and ICT announced the revised "Home Shopping Broadcasting Channel Usage Contract Guidelines" with the participation of TV home shopping operators, data home shopping operators, internet multimedia broadcasting operators, satellite broadcasting operators, and comprehensive cable broadcasting operators.
This revision maintains the principle of voluntary negotiation between operators while presenting standards and procedures to resolve conflicts arising during transmission fee negotiations. It is based on the results of multiple rounds of stakeholder consultations since September last year.
The revised guidelines improve the negotiation process to support fair voluntary negotiations, clearly define the factors to consider when calculating fees, and apply the previous year's contract during negotiations to enhance stability throughout the negotiation process. In cases of delayed negotiations or conflicts, the operational conditions and roles of the fee verification consultative body to resolve such issues were specified to increase the effectiveness of the consultative body.
Specifically, to ensure fair voluntary negotiations, the contract procedures and methods, as well as specific fee calculation criteria, which were previously unilaterally notified by pay broadcasters to home shopping operators, are now to be decided through mutual consultation.
The factors to be considered when establishing fee calculation criteria were clearly stipulated in a separate clause. While reflecting the value of pay broadcast channels and the management status of home shopping operators, qualitative factors were minimized to reduce disputes. The increase or decrease in the total sales amount of broadcast products sold through home shopping broadcasts and the change in the number of pay broadcast subscribers are fundamentally reflected, while changes in the total sales amount of broadcast products sold via mobile and internet, viewing data, and other factors related to home shopping broadcasts are to be reflected within an appropriate range through agreement between operators.
A new clause was introduced to apply the previous year's contract when negotiations proceed after the contract expiration date. This aims to reduce the possibility of pay broadcasters changing home shopping channel numbers or home shopping operators using partial or non-payment of transmission fees as negotiation tactics to force unfavorable negotiations on the other party.
Measures were also established to secure the effectiveness of the fee verification consultative body, an organization that helps resolve conflicts related to home shopping broadcasting channel usage contracts. Previously, the fee verification consultative body could only be operated upon request by operators or when the Minister of Science and ICT deemed it necessary. Now, if no agreement is reached after the basic negotiation period (5 months) and additional negotiation period (3 months), or if one party expresses the intention to end consultations, the body can be automatically activated.
Additionally, the fee verification consultative body will verify whether operators have complied with the guidelines such as the principle of sincere consultation and prohibition of coercing unfavorable transmission fees, and whether the values of factors considered in fee calculation negotiations are appropriate. This reduces asymmetry between operators, ensuring that home shopping operators and pay broadcasters comply with negotiation procedures and principles outlined in the guidelines and negotiate based on reliable data.
Hong Jin-bae, Director of the Network Policy Office at the Ministry of Science and ICT, stated, "The entire pay broadcasting industry is facing difficulties, and conflicts between pay broadcasters and home shopping operators are frequently occurring. Since the industry has gathered opinions over a long period and made mutual concessions to revise the guidelines, we urge strict compliance with them. The government will actively support the coexistence and development of home shopping operators and pay broadcasters going forward."
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