Monday, January 21, 2008

Korean NPVR Charges

The broadcasters have required Korea Telecom and Hanaro Telecom to charge 900 wan ($.50 US) within the first week after they are originally broadcast. After that they are available for no charge. To make this more palatable to viewers in Korea, the telecom companies are offering 300 bonus points for each chargeable program watched as a form of rebate.

NPVR is a big issue between the broadcasters and the Telco IPTV services. NPVR is making progress in Europe but has been stalled by the broadcasters in the U.S. This is the first per view charging scheme that I have seen. This is a onerous approach that is likely to generate consumer resistance. A reasonable monthly subscription fee for unlimited access is likely to be a better approach if it is necessary to charge for the service.

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