SKB Reviews IPTV Broadcasting Plan for Cable Local Channels
Legal Differences Make Promotion Difficult... Operator Agreement Also Needed
"To Allow More Viewing of Local Channel Programs"
As the market share of cable TV decreases in the paid broadcasting market, SK Broadband is reportedly considering using IPTV to increase the viewer reach of regional channels. Regional channels were established to strengthen cable TV's local engagement and provide public information, but as demand declined, paid broadcasting operators decided to expand the use of IPTV as well. However, there are no regulatory grounds for this, making it difficult to proceed. Calls are expected to arise for revising the IPTV-related laws.
According to industry sources on the 15th, SK Broadband is reviewing a plan to broadcast cable TV’s regional channels on IPTV as well. SK Broadband currently operates both IPTV service Btv and cable TV service Btv Cable. Btv Cable is available only in certain areas within Seoul, Gyeonggi, Incheon, Chungnam, Jeonbuk, Busan, Daegu, etc., and regional channels are broadcast on channel B tv according to the region.
The background for SK Broadband’s review is that the market share of comprehensive wired broadcasting operators (SO) is shrinking due to competition from online video services (OTT) and IPTV. According to the Korea Communications Commission’s “Broadcast Market Competition Status Evaluation” last month, the number of IPTV subscribers in 2022 increased by 3.9% year-on-year to 20.67 million. In contrast, SO subscribers decreased by 1.5% year-on-year to 12.68 million.
SK Broadband plans to realize cable TV’s regional characteristics through IPTV but operate regional channels only within the licensed areas. A company official explained, “This idea was proposed to allow more local residents to watch cable TV regional channels.” An industry insider also evaluated, “The usage of cable TV and IPTV is not significantly different. If consumers need regional channels, it would be meaningful for IPTV to broadcast them as well.”
However, it is difficult to proceed at the operator’s discretion. SOs are regulated under the Broadcasting Act, but IPTV falls under the jurisdiction of the Internet Multimedia Broadcasting Business Act (IPTV Act). According to Article 70, Paragraph 4 of the Broadcasting Act, SOs must operate regional channels that produce, organize, and transmit local information, program guides, and announcements. On the other hand, the IPTV Act does not have provisions for operating regional channels. SK Broadband is also considering the need for a regulatory sandbox.
The Ministry of Science and ICT previously devised a plan to allow IPTV to utilize direct-use channels and regional channels to strengthen paid broadcasting competitiveness. However, opposition arose that broadcasting cable TV’s regional channels nationwide via IPTV could dilute regional characteristics, so the proposal was not reflected in the amendments to the Enforcement Decrees of the Broadcasting Act and IPTV Act.
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