Light Reading published an article discussing the status of Korea has made the transition from an on demand only service to a service that includes broadcast content. It on demand service now has 1.3 million subscribers and its broadcast service has grown to 222,600 subscribers in four months.
The country has made great progress even though there is confusion over whether its on demand service is a walled garden or an over the top, Internet service. Maybe Korea is far enough along that distinction is no longer important.
Showing posts with label Korea. Show all posts
Showing posts with label Korea. Show all posts
Friday, May 22, 2009
Monday, November 17, 2008
SK Telecom Loses 36K IPTV Subscribers in 3Q08
SK Telecom (formerly Hanaro Telecom) lost 36,184 in 3Q08, leaving it with 768,625 subscribers at the end of the quarter. This was on top of losing another 77,547 subscribers in 2Q08. SK Telecom offers a video on demand service and is expected to offer a broadcast service in the next few month. Its revenue for the service was $15 million U.S. during the quarter.
The company lost 21,485 broadband subscribers in 3Q08 leaving it with a total of 3.44 million broadband subscribers. This is on top of a loss of 160,599 broadband subscribers in 2Q08. It has not added broadband subscribers since 3Q07.
SK Telecom has been hit with a significant shrinkage of its broadband business since it acquired Hanaro. Its loss of IPTV subscribers is a reflection of this trend.
The company lost 21,485 broadband subscribers in 3Q08 leaving it with a total of 3.44 million broadband subscribers. This is on top of a loss of 160,599 broadband subscribers in 2Q08. It has not added broadband subscribers since 3Q07.
SK Telecom has been hit with a significant shrinkage of its broadband business since it acquired Hanaro. Its loss of IPTV subscribers is a reflection of this trend.
Korea Telecom Adds 102K IPTV Subscribers in 3Q08
Korea Telecom added 102,245 subscribers to its Mega TV video on demand IPTV services in 3Q08, ending the the quarter with 808,101 subscribers. Its revenue for the services was $10.1 million U.S.
The company has just begun to deliver broadcast channels as part of its Mega TV' services , the day following the approval by the Korea Communications Commission (KCC) of its monthly rate of $11 per month U.S. The service provide 33 broadcast channels, including the four national channels of KBS, MBC, SBS and EBS, and about 85,000 movies and other video-on-demand assets.
KT is also planning to launch a premium IPTV service in June 2009, which will provide 80 channels for $16 per month U.S. The company will offer a discount $9 U.S. per month through February 2009.
Korea Telecom's video on demand service has been quite successful. It will be interesting to see how many subscribers convert to the broadcast service. Its video on demand revenue subscribers was about $4 U.S. per month in 3Q08, so the broadcast package represents a significant percentage increase in spending.
The company has just begun to deliver broadcast channels as part of its Mega TV' services , the day following the approval by the Korea Communications Commission (KCC) of its monthly rate of $11 per month U.S. The service provide 33 broadcast channels, including the four national channels of KBS, MBC, SBS and EBS, and about 85,000 movies and other video-on-demand assets.
KT is also planning to launch a premium IPTV service in June 2009, which will provide 80 channels for $16 per month U.S. The company will offer a discount $9 U.S. per month through February 2009.
Korea Telecom's video on demand service has been quite successful. It will be interesting to see how many subscribers convert to the broadcast service. Its video on demand revenue subscribers was about $4 U.S. per month in 3Q08, so the broadcast package represents a significant percentage increase in spending.
Monday, July 28, 2008
Korea Telecom adds 139K IPTV Subscribers in 2Q08
Korea Telecom had 706,856 MegaTV IPTV subscribers at the end of 2Q08, an increase of 138, 618 during the quarter. Its MegaTV IPTV revenue was $9.6 million U.S., up from $5 million U.S. in 1Q08.
Korea Telecom continues to add IPTV subscribers to its MegaTV service at a good clip. It looks like it is generating about $5 per month per subscriber in revenue.
Korea Telecom continues to add IPTV subscribers to its MegaTV service at a good clip. It looks like it is generating about $5 per month per subscriber in revenue.
Friday, April 25, 2008
KT has 567K IPTV Subscribers
Korea Telecom ended March 2008 with 567,230 IPTV subscribers, which is an increase of 528,465 since the end of March 2007. Its broadband service grew by 177,446 subscribers from March 2007 to March 2008 ending with a total of 6,627,175 subscribers.
Also, a Hanaro spokesman stated that it now has 680 thousand IPTV subscribers.
KT's IPTV service grew rapidly in the last 12 months. It appears that this accelerating rate of growth should continue over the next 12 months.
One reader of this blog confirmed that KT's and Hanaro's services are Telco IPTV services. I am more comfortable about this statement relative to KT than Hanaro at this point, but my mind is open. I would appreciate more comments from readers on the scene.
Also, a Hanaro spokesman stated that it now has 680 thousand IPTV subscribers.
KT's IPTV service grew rapidly in the last 12 months. It appears that this accelerating rate of growth should continue over the next 12 months.
One reader of this blog confirmed that KT's and Hanaro's services are Telco IPTV services. I am more comfortable about this statement relative to KT than Hanaro at this point, but my mind is open. I would appreciate more comments from readers on the scene.
Saturday, March 29, 2008
Korean Providers to Invest $15.8B in IPTV In 2008
The Broadcasting and Communications Commission in Korea stated that telecom firms there are to invest around $15.8 billion on IPTV services in 2008.
KT, the dominant telephone and broadband Internet service provider, alone plans to spend $13 billion, and LG Dacom and Hanarotelecom plan to spend $1.475 billion and $1.23 billion, respectively.
According to the report from the commission, the firms have said that they will spend $10.6 billion won on improving networks, $1.14 billion on platforms, $2.23 billion on set-top boxes and another $1.8 billion on purchasing content.
The Electronics and Telecommunications Research Institute estimates IPTV will be a $5.4 billion market this year, meaning it will take a few years for the firms to start making any profits. Government agencies expect IPTV subscribers to reach 2 million this year and grow to 3.3 million by 2012.
According to the report from the commission, the firms have said that they will spend 1.06 trillion won on improving networks, 113.7 billion won on platforms, 223 billion won on set-top boxes and another 180 billion won on purchasing content. The Electronics and Telecommunications Research Institute estimates IPTV will be a 540-billion won market this year, meaning it will take a few years for the firms to start making any profits. Government agencies expect IPTV subscribers to reach 2 million this year and grow to 3.3 million by 2012.
It looks like IPTV will have a big year in Korea in 2008. I am still a bit confused about which of these services are Internet over the top and which are typical walled garden Telco IPTV services. I would appreciate clarification from anybody on the scene.
KT, the dominant telephone and broadband Internet service provider, alone plans to spend $13 billion, and LG Dacom and Hanarotelecom plan to spend $1.475 billion and $1.23 billion, respectively.
According to the report from the commission, the firms have said that they will spend $10.6 billion won on improving networks, $1.14 billion on platforms, $2.23 billion on set-top boxes and another $1.8 billion on purchasing content.
The Electronics and Telecommunications Research Institute estimates IPTV will be a $5.4 billion market this year, meaning it will take a few years for the firms to start making any profits. Government agencies expect IPTV subscribers to reach 2 million this year and grow to 3.3 million by 2012.
According to the report from the commission, the firms have said that they will spend 1.06 trillion won on improving networks, 113.7 billion won on platforms, 223 billion won on set-top boxes and another 180 billion won on purchasing content. The Electronics and Telecommunications Research Institute estimates IPTV will be a 540-billion won market this year, meaning it will take a few years for the firms to start making any profits. Government agencies expect IPTV subscribers to reach 2 million this year and grow to 3.3 million by 2012.
It looks like IPTV will have a big year in Korea in 2008. I am still a bit confused about which of these services are Internet over the top and which are typical walled garden Telco IPTV services. I would appreciate clarification from anybody on the scene.
Monday, January 21, 2008
Korean NPVR Charges
The broadcasters have required Korea Telecom and Hanaro Telecom to charge 900 wan ($.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.
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.
Monday, December 31, 2007
Korean Bill Enables IPTV
The Korea legislature passed a law allowing telecom companies to offer IPTV services over their broadband networks. Korea Telecom, Hanaro Telecom and LG Dacom have provided video on demand services through their Mega TV, Hana TV, and My LG TV services, respectively, without relevant laws. These services offer TV programs several hours or days after terrestrial broadcasters have first broadcast them. The new law means these programs can be broadcast over IPTV services live.
Korea Telecom will not be required to spin off its IPTV business. The country’s broadcasting sector had demanded that Korea Telecom spin off its IPTV unit on concerns that the firm is expanding its monopolistic position into the IPTV market.
It appears that the regulatory issues that have plagued the Korean IPTV market have been resolved by this new law. Hopefully the dueling regulatory bodies in the government that have held it back will now cooperate to create a strong IPTV industry in Korea.
Korea Telecom will not be required to spin off its IPTV business. The country’s broadcasting sector had demanded that Korea Telecom spin off its IPTV unit on concerns that the firm is expanding its monopolistic position into the IPTV market.
It appears that the regulatory issues that have plagued the Korean IPTV market have been resolved by this new law. Hopefully the dueling regulatory bodies in the government that have held it back will now cooperate to create a strong IPTV industry in Korea.
Sunday, December 16, 2007
KT to user IPTV Advertising
Korea Telecom the will acquire Nasmedia, an online advertisement agency for $US28 million. Nasmedia will sell ads for Korea Telecom's IPTV and mobile Internet platforms starting in 2008. The acquisition is a response to SK Telecom, the largest wireless carrier in Korea, which bought an ad company Aircross in 2000.
The purchase of Nasmedia is one of the steps Korea Telecom is taking to transform itself from a telecom operator into a media and entertainment company. It plans to provide tailored advertisements for new media outlets.
Korea Telecom believes that its IPTV subscribers will increase five fold to 1.5 million over the next 12 months and it will become a major source of advertising income.
Advertising is becoming a major emerging source of new revenues for mobile and IPTV services globally. This is a clear trend on a global basis.
The purchase of Nasmedia is one of the steps Korea Telecom is taking to transform itself from a telecom operator into a media and entertainment company. It plans to provide tailored advertisements for new media outlets.
Korea Telecom believes that its IPTV subscribers will increase five fold to 1.5 million over the next 12 months and it will become a major source of advertising income.
Advertising is becoming a major emerging source of new revenues for mobile and IPTV services globally. This is a clear trend on a global basis.
Friday, November 16, 2007
IPTV Legal Status in Korea Approaching Resolution
The National Assembly of Korea is expected to pass a special law before the end of the year that will allow Internet companies to broadcast TV shows using IPTV technology.
The assembly's Broadcasting and Communications Special Committee's subcommittee on bill deliberations reached an agreement on some difficult points in the proposed law. If the IPTV bill is passed at a parliamentary plenary session, Internet service providers like KT and Hanaro Telecom will be allowed to broadcast IPTV programs in real time like terrestrial and cable broadcasters. The committee plans to pass the bill at its meeting on Tuesday before submitting it to the floor the following Friday.
This law should resolve the legal issues that have held IPTV back in Korea for years now. If it is actually resolved by the end of 2007, 2008 will be an excellent year for IPTV in Korea.
Friday, October 26, 2007
Korea Telecom Has 148 K IPTV Subscribers
Korea Telecom announced that it had 148,353 IPTV subscribers to its MegaTV service at the end of September 2007. This is up from 55,254 subscribers at the end of June. It is forecasting that it will have 300 thousand subscribers by the end of 2007.
Korea Telecom stated that its MegaTV subscribers are highly satisfied with both content and quality. It plans to strengthen its children and educational content. Its service is using set-top boxes from Samsung, Humax, and Dasan Networks for this service.
This is good progress; however I am still confused about the regulatory situation in Korea. The last I heard, the regulatory issues there are still a long way from being settled. If there is anybody reading this that has first hand knowledge of this, I would appreciate a comment telling us all what is going on.
Korea Telecom stated that its MegaTV subscribers are highly satisfied with both content and quality. It plans to strengthen its children and educational content. Its service is using set-top boxes from Samsung, Humax, and Dasan Networks for this service.
This is good progress; however I am still confused about the regulatory situation in Korea. The last I heard, the regulatory issues there are still a long way from being settled. If there is anybody reading this that has first hand knowledge of this, I would appreciate a comment telling us all what is going on.
Thursday, October 11, 2007
Sony PS3 IPTV Set-top Box
It has been reported that Korea Telecom will offer the Sony Playstation 3 game console as a set-top box for its IPTV service.
This is a response to Microsoft using its Xbox game console as a Mediaroom set-top box. It makes a lot of sense for both companies, especially where there are a lot of serious gamers.
This is a response to Microsoft using its Xbox game console as a Mediaroom set-top box. It makes a lot of sense for both companies, especially where there are a lot of serious gamers.
Wednesday, September 5, 2007
Korea Telecom Launches IPTV Service
Korea Telecom has expanded its Mega TV IPTV service nationally across Korea. Up to now it has been available only in Seoul and nearby cities. It is now available to Korea Telecom's 5.5 million broadband users.
Korea Telecom expects to attract 300,000 subscribers by the end of 2007 and to increase the number to one million in 2008.
The Mega TV service will offer video-on-demand programming services along with interactive TV services, including an electronic program guide. Programs include movies, sports, culture, animation, documentaries, drama and educational content. Research conducted during the Mega TV pilot phase indicates that 84 percent of target customers would like to acquire the service.
The situation in Korea is confusing. The last I heard, regulatory issues had put Korea Telecom's Mega TV plans on hold. It appeared a month ago that these regulatory issues would not be resolved until next year. I will make another post when I get more information.
Korea Telecom expects to attract 300,000 subscribers by the end of 2007 and to increase the number to one million in 2008.
The Mega TV service will offer video-on-demand programming services along with interactive TV services, including an electronic program guide. Programs include movies, sports, culture, animation, documentaries, drama and educational content. Research conducted during the Mega TV pilot phase indicates that 84 percent of target customers would like to acquire the service.
The situation in Korea is confusing. The last I heard, regulatory issues had put Korea Telecom's Mega TV plans on hold. It appeared a month ago that these regulatory issues would not be resolved until next year. I will make another post when I get more information.
Monday, August 20, 2007
Hanaro's HanaTV Success
I found an interesting article about Hanaro's HanaTV service in Korea. HanaTV is an over the top Internet Subscription Video On Demand (SVOD) service that now has more than 500 thousand subscribers. Hanaro's content strategy of acquiring On Demand content from the broadcasters in Korea in order to get content that is ready for the Korean market without further preparation.
This is probably the most successful Internet TV service that delivers content to TVs rather than to PCs. This service is certainly helped by the high speed broadband connections that are available in Korea compared to the rest of the world.
I have written a report called "The Battle for Broadband TV" that discusses the issues of TelcoTV vs. Internet TV. There is a free whitepaper available summarizing the results in this report.
This is probably the most successful Internet TV service that delivers content to TVs rather than to PCs. This service is certainly helped by the high speed broadband connections that are available in Korea compared to the rest of the world.
I have written a report called "The Battle for Broadband TV" that discusses the issues of TelcoTV vs. Internet TV. There is a free whitepaper available summarizing the results in this report.
Monday, July 30, 2007
Korea Telecom IPTV Hits a Snag
It appears that Korea Telecom has hit a regulatory snag and will not be permitted to broadcast content in real time. This issue is being addressed in pending legislation.
It appears that Korea Telecom's IPTV introduction last month was premature. It could be another year before all of this gets sorted out. This is another chapter in Korea's IPTV oddysey.
It appears that Korea Telecom's IPTV introduction last month was premature. It could be another year before all of this gets sorted out. This is another chapter in Korea's IPTV oddysey.
Thursday, July 5, 2007
Korea Telecom Starting IPTV
An STMicro press release said that Korea Telecom has just launched its IPTV service. The service provides over 1,200 on demand videos and 27 interactive services, ranging from education to finance to instant messaging. An electronic program guide and user-created content are also available. Other KT IPTV services include: digital photos and personalized stock; plus weather and sports information.
It is interesting that there was no mention of broadcast services. I am making some inquiries to find out more about what KT is doing. I will let you know when I learn more.
It is interesting that there was no mention of broadcast services. I am making some inquiries to find out more about what KT is doing. I will let you know when I learn more.
Saturday, April 7, 2007
Regulatory Uncertainty Continues in Korea
The telcos in Korea will now be allowed to build IPTV services, but these services have been categorized as "broadcast services". The Korean Telecommunications Associations (KCTA) welcomed the ruling, but telecom companies said that the ruling would actually prevent them from entering the market.
You can see the source of this post at http://english.donga.com/srv/service.php3?bicode=020000&biid=2007040730798
The regulatory status of IPTV has been muddled for some time. It appears that this ruling will not help the situation. Maybe I need to go and reduce my IPTV forecast for Korea?
You can see the source of this post at http://english.donga.com/srv/service.php3?bicode=020000&biid=2007040730798
The regulatory status of IPTV has been muddled for some time. It appears that this ruling will not help the situation. Maybe I need to go and reduce my IPTV forecast for Korea?
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