[Exclusive] Watching Pro Baseball Broadcasts for a Fee... TVING Moves Toward '5,500 KRW per Month' Pay Model

CJENM to Include Pro Baseball Broadcasts in 'Advertising Fee Plan'
Broadcast Service Included in '5,500 Won' Advertising Fee Plan Launching in March

The stands of professional sports, which had been closed due to the novel coronavirus disease (COVID-19) outbreak, have reopened. On the first day of professional baseball spectators' admission, the 26th, citizens visiting Jamsil Baseball Stadium in Seoul are cheering while maintaining social distance. The Ministry of Culture, Sports and Tourism decided to allow spectators to enter at 10% capacity starting from the professional baseball games held on this day. Photo by Kim Hyun-min kimhyun81@

CJ ENM, the operator of the online video service (OTT) TVING, has decided to monetize professional baseball broadcasts. It is highly likely that the upcoming TVING 'advertisement-based subscription plan (AVOD)' launching next month will include professional baseball broadcast services.

According to industry sources on the 21st, CJ ENM, the preferred negotiator for the professional baseball new media broadcasting rights, is reportedly in talks with the Korea Baseball Organization (KBO) to allow viewing of professional baseball within TVING's AVOD service launching on the 4th of next month. An industry insider said, "The professional baseball season starts in March, and TVING's new AVOD is also launching in the same month, so negotiations are proceeding to provide the service according to this schedule."

The AVOD plan TVING is preparing will cost 5,500 KRW per month, about 4,000 KRW cheaper than TVING's existing lowest-priced plan, 'Basic.' It can be used on devices such as mobile phones, tablets, PCs, and TVs, and the video quality is the same as the existing 'Standard' plan. Account sharing is allowed for up to 4 accounts, with simultaneous access on up to 2 devices.

The monetization of professional baseball broadcasts was somewhat anticipated. Previously, CJ ENM reportedly offered the KBO a contract amount (approximately 45 billion KRW annually) higher than that of the Naver consortium (Naver, SK Telecom, LG Uplus, AfreecaTV) to secure the new media broadcasting rights for professional baseball.

Considering that the previous bidder, a portal and telecommunications consortium (Naver, Daum, SK Broadband, KT, LG Uplus), paid 110 billion KRW over five years (22 billion KRW annually) in 2019, CJ ENM's proposed amount exceeds twice that. This indicates a significant financial burden. Additionally, TVING's annual deficits have been expanding, with 6.1 billion KRW in 2020, 76.2 billion KRW in 2021, and 119.2 billion KRW in 2022. To improve profitability, it was necessary to increase paid subscribers through professional baseball broadcasts and seek a business turnaround.

There were voices advocating for free broadcasts considering the universal viewing rights of professional baseball, but CJ ENM appears to have concluded that since terrestrial and sports channels already hold broadcasting rights, there is no need to apply this to new media as well.

It is also highly unlikely that the professional baseball broadcasting rights will be resold. Reselling the rights to competitors such as Naver and Coupang Play could undermine the effect of securing the rights at a high cost.

However, CJ ENM is reportedly considering allowing baseball fans to use the AVOD service for free for a certain period to minimize resistance to the transition to paid new media broadcasts. The free period is expected to be about one to two months.

A CJ ENM official said, "We cannot disclose specific details as negotiations are ongoing," but added, "We are trying our best to reduce the burden on baseball fans."