Korea Gov’t lifts limits on cable TV ads, fees

Korea rethinks multichannel biz, lifts caps and limits.

Korean authorities are attempting to boost the quality of local multichannel content in sweeping deregulation that includes lifting the monthly subscription TV price cap as well as the limit on mid-show ad breaks and product placement. The deregulation, designed to support smaller producers and operators, will roll out over the next three years, the Ministry of Science, ICT and Future Planning and the Korea Communications Commission (KCC) said this week. Hopes are that the additional revenues, including potential global syndication revenue, will be invested in local content creation. Korea’s monthly subs are currently about US$25. Korea’s Joongang Daily says the pay-TV production and channel operation market in Korea was worth about US$5.9 billion in 2013, and that 11 companies dominate with 56.2% market share. Sales are driven by home shopping. The report also said that about 150 producers/operators, including CJ E&M, accounted for 36.5% share.

Read more at Korea Joongang Daily