Abstract
In the market of the broadcasting and telecommunication services, we may have often the effective competition and the audience welfare through asymmetric regulations against dominant enterprise. This study analyzes the feasibility of asymmetric regulations against terrestrial broadcasting companies based on the fair competition and the theory of balanced media development, and favored policy support for comprehensive programming channels(hereinafter referred to as CPC), focusing on the must-carry rule and direct advertising sales system.
The results are as follows: First, the ratings of terrestrial broadcasting companies and their affiliated PP have had a competitive superiority, but they lost the market dominant power in terms of the network as the ratio of direct reception of the terrestrial broadcasting has still been low and subscribers of MVPD(multi video program distributor) have increased up to 90% or more. In this point, the asymmetric regulations against terrestrial broadcasting companies lost its legitimacy.
Second, the must-carry rule of CPC is so far from the broadcasting policies objectives for the public interest and the diversity because the terrestrial broadcasting pursues them.
The must-carry rule of CPC may have a temporary feasibility because it can makes it easy for late movers to penetrate market and accelerate the fair competition. But there are concerns that it may restrict the MVPD’s right of channel line-up and small PPs are thrown out. And finally, the regulation on the CPC’s way of advertising sales should be reconsidered and decided after analyzing the market competition dynamics, content quality as well as business performance. If CPCs enter the market successfully and achieve the average viewership of 5% or more, it is necessary to reinforce regulations on CPC for public interest and fair competition; ratio of first-run program and indirect advertising sales. But if CPCs’ rating is under 1% and their influences are as weak as PP’s, the present level of regulation is feasible in terms of fair competition and balanced media development.
The results are as follows: First, the ratings of terrestrial broadcasting companies and their affiliated PP have had a competitive superiority, but they lost the market dominant power in terms of the network as the ratio of direct reception of the terrestrial broadcasting has still been low and subscribers of MVPD(multi video program distributor) have increased up to 90% or more. In this point, the asymmetric regulations against terrestrial broadcasting companies lost its legitimacy.
Second, the must-carry rule of CPC is so far from the broadcasting policies objectives for the public interest and the diversity because the terrestrial broadcasting pursues them.
The must-carry rule of CPC may have a temporary feasibility because it can makes it easy for late movers to penetrate market and accelerate the fair competition. But there are concerns that it may restrict the MVPD’s right of channel line-up and small PPs are thrown out. And finally, the regulation on the CPC’s way of advertising sales should be reconsidered and decided after analyzing the market competition dynamics, content quality as well as business performance. If CPCs enter the market successfully and achieve the average viewership of 5% or more, it is necessary to reinforce regulations on CPC for public interest and fair competition; ratio of first-run program and indirect advertising sales. But if CPCs’ rating is under 1% and their influences are as weak as PP’s, the present level of regulation is feasible in terms of fair competition and balanced media development.
| Translated title of the contribution | A Study of Effect of Asymmetric Support for the Comprehensive Programming Channels on the Market Competition of Broadcasting |
|---|---|
| Original language | Korean |
| Pages (from-to) | 77-110 |
| Number of pages | 34 |
| Journal | 방송과 커뮤니케이션 |
| Volume | 12 |
| Issue number | 4 |
| DOIs | |
| State | Published - Dec 2011 |