|
Telecom company KT is in the process of establishing a media content joint venture with capital of W40 billion with On Media, the largest cable TV program provider in Korea, a KT insider said Sunday (US$1=W929). On Media, an affiliate of the Orion group, supplies popular channels such as Orion Cinema Network (movies), Toonibus (cartoons), On Game Net (games) and others.
The joint venture firm will provide On Media content and newly developed content to KT's Internet TV and mobile phones. If it succeeds, other major telecoms SK and Hanaro could accelerate their own joint projects with cable program providers. That will mean huge changes in the broadcast market. Viewers will have access to mushrooming choice on a variety of media while terrestrial broadcasters such as KBS and MBC will lose their grip on the market due to dwindling program rating.
KT estimates that it will secure more than four million viewers in the next five years if KT provides On Media's popular channels on the Megapass Internet TV. Meanwhile, terrestrial broadcasters are arguing government should regulate IP TV strictly. Cable TV service operators such as T-broad and CJ Cable net are also expected to try and exclude program providers which provide popular programs to Internet TV from cable TV channels.
But KT reportedly offered compensation of between W5 billion and W8 billion over the next five years if On Media loses subscription and advertising revenue from the deal.
(englishnews@chosun.com )
|
