Direction of Koreas digital cable TV industry

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Direction of Koreas digital cable TV industry
March 3, 2003
Seoul National University of Technology
Department of Media Engineering Professor CHOI,
Sung-Jin, Ph.D
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Agenda
1. Trend of cable TV in key countries 2. Status
of Koreas cable TV 3. Future of broadcasting
industry 4. Direction on digital cable TV business
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1. Trend of cable TV in key countries
U.S.
Background
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1. Trend of cable TV in key countries U.S.
Competition with Satellite broadcasting
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1. Trend of cable TV in key countries U.S.
Policy Trends
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1. Trend of cable TV in key countries U.K.
Background
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1. Trend of cable TV in key countries U.K.
Status of Digital Cable Business
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1. Trend of cable TV in key countries U.K.
Policy Trend
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1. Trend of cable TV in key countries Japan
Background
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1. Trend of cable TV in key countries Japan
Policy Trend
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1. Trend of cable TV in key countries Sweden
Background
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1. Trend of cable TV in key countries Summary
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2. Status of Koreas cable TV
Structure
Multi-channel TV cable satellite
II. Internet broadcasting
I. Terrestrial
?
?
Synchronous One-way
Asynchronous Two-way
Synchro Asynchro One-way Two-way
Direct payment
Direct indirect payment
Indirect payment
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2. Status of Koreas cable TV
competition

• Even though cable TV has a large pool of pay TV
  subscribers, it needs to deploy digital platform
  in order to maintain competitiveness in the
  future. (Digitalization of cable TV services is
  not a choice but a must.)
• It is important to accelerate the process of
  digitalization in light of the fact that KT is
  aggressively entering the market and KDB is
  becoming more competitive.

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2. Status of Koreas cable TV
Environment

• 800 million subscribers
• Dominate the multi-channel market
• Changing market structure with the emergence of
  MSOs and MPPs
• Regulatory protection reduces as the market
  matures.
• Deregulation leads to competition with other
  media.
• Market principles are applied in the cable TV
  industry

Korean cable TV industry is getting more mature.

• Require strategy shift from Mom calling
  strategy to I can do self regulation strategy
• Need to grow internal capabilities to resolve
  industry problems within the industry
• The cable TV industry should mature further to
  the level that operators lead the market.
• It is practically impossible to receive
  financial resources for digitalization.

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3. Future of Broadcasting Industry
In the future, broadcasting and
telecommunications will converge so that same
contents can be shown on various different
platforms.
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3. Future of Broadcasting Industry
Cable TV industry should develop to satisfy
consumer needs, and ultimately offer tailored
services for individual subscribers.

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4. Direction on digital cable TV business

• Strengthening internal competence of SOs
• Securing financial resources for digital
  deployment
• Improving government support and legal framework
  to promote
• digitalization of cable TV services
• Coordination of common requirements and
  specifications among
• DMCs