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Title
KCC Standing Commissioner Hur meets with IPTV and content operators
Date
2019-06-26
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One June 25, Korea Communications Commission (KCC, Chairman Lee Hyo-seong) Standing Commissioner Hur Wook met with
representatives from KT, SKB, LGU+, the Korea Cable TV Association, the Korea Broadcasting Channel Promotion Association, as well as IPTV and content operators at the Korea Press Center to foster a discussion on mutual growth measures.
Before the discussion, the three IPTV operators and content operators had a signing ceremony to reduce the use fee for IPTV leased lines, and
representatives from KT, SKB and LGU+ signed the document.
Currently, content operators transmit their content to IPTV operators by a “one line, one channel” transmission method and pay 39.4 billion KRW (according to 2018 monthly use fees standard) to the three IPTV operators annually for leased line use fees.
Under the new agreement, content operators can choose, in addition to the current “one line one channel” option, a “multi transmission channel (one line, multiple channel transmission) option. If they choose the ”one line, multi channel“ transmission method, they will reduce their annual use fees by 3.9 billion (approximately 10%, according to a three year contract).
This new transmission method will be available starting in 2020 once the IPTV operators put the necessary equipment in place.
Commissioner Hur applauded the IPTV operators for their efforts for mutual growth with content operators, despite these new measures requiring additional investment in equipment and leading to a decrease in revenue from leased line use fees. He asked for continuous effort from both parties for mutual growth as activities to reorganize the pay TV system, centered on the IPTV operators, continues.
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