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Competition Issues of the Korean Broadcast Service Provision Market in the Multimedia and Multichannel Era

Korea Journal / Korea Journal, (P)0023-3900; (E)2733-9343
2006, v.46 no.3, pp.184-207


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Abstract

The changes in the Korean broadcast service provision market for thelast few years are summed up as the advancement from a terrestrial to amultichannel TV situation. Terrestrial TV is weakening while cable SOsare experiencing rapid growth. Cable SOs, however, are also facing com-petition. Major over-the-air networks are spinning off PPs centered onentertainment, drama and sports in an effort to diversify their business.The production budgets are relatively focused on commercial content,which in turn are moved to the pay PP channels. In this vein, publicand universal service functions of over-the-air networks are weakening.Pay TV exists as a sub-low market, centered around cable SOs. PPs relyhighly on advertisements while adopting a low-cost programming strate-gy. Satellite TV is suffering from this sub-low market. The rising compe-tition in the broadcast service provision market does not mean thatsociocultural policy matters will fade away. On the contrary, the effortsto link competition in broadcast market to its desirable socioculturaloutcomes should persist.

keywords
broadcast market competition, retransmission of terrestrialTV, cable SO, cable PP, program quality, satellite TV, IPTVexisted (Youn 1999, 2005). Consequently, service providers heldstrong market power in terms of both the audience and the contentpro, broadcast market competition, retransmission of terrestrialTV, cable SO, cable PP, program quality, satellite TV, IPTVexisted (Youn 1999, 2005). Consequently, service providers heldstrong market power in terms of both the audience and the contentpro

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