Terrestrial Broadcasters: "Free VOD Service Must Not Be Discontinued"... Cable Providers: "No Demand or Capacity"

Broadcasting Association Issues Statement on SVOD Service Suspension
"Violation of Choice and Unfair Practices... Will Take Legal Action"
"One Month Viewer Notice... Heavy Burden of Content Payment Fees"

As some cable TV operators, including LG HelloVision, have suspended free terrestrial VOD (SVOD) services, a group representing terrestrial broadcasters has urged the withdrawal of the suspension.

According to industry sources on the 4th, SVOD services have been suspended since the day before on cable TV operated by some comprehensive cable TV operators such as LG HelloVision and HCN. SVOD refers to video on demand (VOD) that cable TV subscribers can watch for free after a certain period following the original broadcast as part of their basic subscription fee.

The cable TV industry and terrestrial broadcasters have been negotiating a new content supply contract since the previous one expired in 2021. However, last month, some cable TV operators collectively sent official letters to terrestrial broadcasters announcing the suspension of terrestrial SVOD services, and on the 3rd, they abruptly terminated the SVOD service and switched to a paid model.

The Korea Broadcasting Association, the representative body of terrestrial broadcasters, demanded the immediate withdrawal of the forced SVOD suspension in a statement issued that day. The association explained, "Due to this action, subscribers to the relevant cable products are paying the basic subscription fee but cannot use the previously available free SVOD service, and to watch VOD, they must subscribe to a paid monthly plan or purchase individually, resulting in additional burdens."

Furthermore, the association stated, "The suspension of SVOD infringes on subscribers' viewing choices and is a deceptive profit-making act that induces additional burdens," and raised its voice against what it called "unfair practices that disregard subscriber harm." It also criticized the failure to comply with customer notification obligations required for suspending SVOD services.

The association also indicated it would not hesitate to take legal action. "If this action is not rectified, we will have no choice but to designate the relevant broadcasters as illegal operators," adding, "Along with reviewing the continuation of all content supply contracts, we will initiate legal responses to the illegal acts."

In response, the cable industry stated that the decision was made because SVOD was being ignored by viewers and that they had done their best to fulfill duties such as notifying viewers.

The Korea Cable TV Broadcasting Association said, "We notified viewers for a month and provided subtitle notifications as the service termination approached, but there were almost no related inquiries," adding, "It has been proven that there are no viewers for content already exposed on multiple platforms and past the three-week holdback period."

It also said, "Cable operators are not in a position to pay for a service whose utility has sharply declined," and "Content payment fees reached 86.7% of subscription fees as of 2022, which is not a bearable level."