Korea Communications Commission Announces 2024 Financial Status of Broadcasting Operators
Terrestrial Broadcasters' Advertising Revenue Down by About KRW 200 Billion Year-on-Year
CP Program Production Costs Increase by About KRW 120 Billion
Last year, broadcasting advertising revenue decreased by 8.1% (KRW 201.9 billion) compared to the previous year. Most operators, including terrestrial broadcasters and program providers (PP), saw a decline in advertising revenue. In contrast, program production costs increased by 2.0% (KRW 113.6 billion) year-on-year, resulting in a 26.7% (KRW 800.6 billion) decrease in the total operating profit of all broadcasting operators.
On June 30, the Korea Communications Commission announced the "2024 Broadcasting Operators' Financial Status," covering 365 broadcasting operators including terrestrial broadcasters, pay TV, and PPs.
Total broadcasting business revenue was KRW 18.8042 trillion, a decrease of 0.9% (KRW 169.2 billion) compared to 2023. Broadcasting business revenue had been on the rise for the past 10 years, but has now declined for two consecutive years.
In particular, there were significant decreases in terrestrial broadcasting (-5.4%, KRW 200.1 billion), system operators (SO) (-2.9%, KRW 50 billion), and satellite broadcasting (-3.6%, KRW 17.8 billion). On the other hand, Internet Protocol TV (IPTV) revenue increased by 1.4% (KRW 71.1 billion), and Internet multimedia broadcasting content providers (CP) revenue rose by 3.2% (KRW 28.3 billion).
Broadcast advertising revenue was KRW 2.2964 trillion, down 8.1% (KRW 201.9 billion) from the previous year.
Terrestrial broadcasters saw a decrease of KRW 91.9 billion (-9.9%) to KRW 835.4 billion, PPs fell by KRW 105.9 billion (-7.8%) to KRW 1.2541 trillion, IPTV dropped by KRW 8.7 billion (-12.0%) to KRW 63.7 billion, and satellite broadcasting declined by KRW 1.3 billion (-4.7%) to KRW 26.2 billion.
Due to factors such as rising labor costs, total program production costs for all broadcasting operators increased by 2.0% (KRW 113.6 billion) year-on-year, reaching KRW 5.7624 trillion.
Terrestrial broadcasters' production costs decreased by KRW 182 billion (-6.4%) to KRW 2.655 trillion, PPs increased by KRW 174.7 billion (7.4%) to KRW 2.5468 trillion, and CPs rose by KRW 121.7 billion (34.9%) to KRW 470.2 billion.
In addition, total broadcasting business revenue for home shopping PPs was KRW 3.417 trillion, a decrease of 2.2% (KRW 76.3 billion). The transmission fees paid by home shopping PPs to pay TV operators increased by KRW 4.2 billion (0.2%) to KRW 2.4603 trillion compared to the previous year.
Last year, the total operating profit of all broadcasting operators was KRW 2.1999 trillion, down KRW 800.6 billion (-26.7%).
IPTV's operating profit decreased by KRW 904.2 billion to KRW 1.6169 trillion, while terrestrial broadcasters' operating loss increased by KRW 55.6 billion, resulting in a loss of KRW 84.5 billion and marking a second consecutive year of operating losses. PP's operating profit increased by KRW 227.9 billion to KRW 535.7 billion, while SO's operating profit decreased by KRW 48.3 billion to KRW 14.8 billion.
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