'Blackout' CJ OnStyle and 3 Cable TV Companies Submit Opinion Letter Ahead of Correction Order Notice

Violation of Home Shopping Usage Contract Guidelines
Disagreement Between Both Sides on 'Consideration Factors for Price Calculation'
Consultative Body and Injunction Results Also Take Time, Blackout Continues

Home shopping channel CJ OnStyle has suspended broadcasting transmission (blackout) on three cable TV companies, and the Ministry of Science and ICT has taken active coordination measures, including a notice of corrective order. Both sides submitted statements of opinion on the notice of corrective order, but the differences remain, so the blackout situation is expected to continue for the time being.

According to the Ministry of Science and ICT and the industry on the 24th, the three cable TV companies?D'Live, Areum Broadcasting, and CCS Chungbuk Broadcasting?and CJ OnStyle submitted statements of opinion on the Ministry's notice of corrective order for 'violation of the Broadcasting Act' on the afternoon of the previous day.

Earlier, CJ OnStyle announced that it would suspend broadcasting transmission to D'Live, Areum Broadcasting, and CCS Chungbuk Broadcasting from 12 a.m. on the 5th due to the termination of the home shopping program transmission contract.

The Ministry of Science and ICT regards that both sides violated the Broadcasting Act, including the 'Home Shopping Broadcasting Channel Usage Contract Guidelines,' which are reflected in the home shopping re-approval and paid broadcasting re-licensing reviews.

The guidelines include principles and procedures for negotiation, unfair acts without justifiable reasons, and factors to consider when calculating fees (transmission fees). It is known that the claims of both sides regarding these factors are conflicting.

The statements of opinion reportedly contain explanations regarding the legitimacy of the factors presented by both sides.

The Ministry of Science and ICT plans to review the corrective order based on the statements of opinion. If either side does not comply after the Ministry issues the corrective order, fines may be imposed.

With the government issuing a notice of corrective order, there has been no change in the positions of both sides. CJ OnStyle is demanding a reduction in transmission fees, while the cable TV companies are requesting the blackout to be lifted.

In response to the indefinite blackout situation, the Ministry of Science and ICT has formed a fee verification consultative body since the 2nd to discuss the fairness of contracts between home shopping companies and paid broadcasters and is reviewing related materials.

The consultative body's operation period is basically within 60 days but can be extended by 30 days if additional review is necessary. Therefore, it may take up to about three months to reach a conclusion.

The result of the provisional injunction application filed by cable TV companies such as D'Live and CCS Chungbuk Broadcasting against CJ OnStyle to suspend broadcasting transmission is also expected to be announced early next year, so the blackout situation is likely to continue.

Meanwhile, Minister Yu Sang-im of the Ministry of Science and ICT mentioned the blackout situation at a press briefing the day before, saying, "The victims are the public," and "If the government does not intervene to some extent, significant problems will arise." Minister Yu added, "When the government steps in, it must play a bold and decisive role to prevent further damage."

This content was produced with the assistance of AI translation services.