CJ OnStyle Channel Broadcast Suspended from Midnight on the 5th
Cable TV Industry: "Unreasonable Commission Reduction Demands"
CJ OnStyle has stopped channel transmission to cable TV comprehensive wired broadcasting operators (SO). This is the first time that a conflict over transmission fees between home shopping and the cable TV industry has actually led to a 'blackout' (broadcast transmission suspension). In response, the Korea Cable TV Broadcasting Association strongly criticized the move, calling it an act that disrupts the balance of the paid broadcasting ecosystem.
From midnight on the 5th, CJ OnStyle halted channel transmission to SOs such as D'Live, Areum Broadcasting, and CCS Chungbuk Broadcasting. On October 30th, CJ OnStyle had posted a notice on its website stating, "The home shopping program transmission contract has ended, and the broadcast transmission of CJ OnStyle and CJ OnStyle Plus channels will be terminated."
The cable TV industry claims that the home shopping companies ignored the existing contract methods and the 'Home Shopping Broadcast Channel Usage Contract Guidelines,' forcing an excessive reduction in transmission fees. Despite a slight decrease of less than 5% in SO subscribers compared to the previous year, CJ OnStyle demanded a transmission fee cut of more than 60%, and when this was not accepted, they stopped transmission.
Although there have been warnings of home shopping channel transmission suspensions amid ongoing conflicts over transmission fees, this is the first time an actual suspension has occurred. Last year, Hyundai Home Shopping threatened to suspend transmission to satellite broadcaster KT Skylife, and Lotte Home Shopping warned of suspension to D'Live. However, in both cases, dramatic agreements were reached to avoid blackouts.
Regarding CJ OnStyle's channel transmission suspension, the Korea Cable TV Broadcasting Association issued a statement saying, "This not only seriously threatens the business rights of SOs but also disrupts the balance of the paid broadcasting ecosystem and infringes on the basic viewing rights of the public."
The basis for this is that home shopping transmission fees have been used as content usage fees for broadcasting channel usage businesses (PP), supporting content production and creating a virtuous cycle that increases home shopping viewers.
Additionally, the cable TV industry points out that home shopping companies excluded subscribers of the 8-level vestigial sideband (8VSB) service?introduced to guarantee basic viewing rights after the end of analog broadcasting?from subscriber counts, thereby discriminating against viewers.
The cable TV industry believes that measures by SOs to strengthen their negotiating power are necessary. An industry official said, "Home shopping companies are expanding profits by inducing indirect payments through broadcasts and increasing other sales via mobile and internet, but they have damaged the fairness of negotiations by unilaterally demanding transmission fee reductions without disclosing related data."
Another official stated, "The transmission suspension affects not only SOs but also PPs, home shopping suppliers, and viewers negatively. SOs have no choice but to adjust content transaction fees or consider increasing subscription fees to secure insufficient resources."
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