Digital Convergence's Impact on the Broadcasting Management in Korea - Telecommunications Firm's Entry into Broadcasting Industry

초록

After 2000, in Korea, convergence between broadcasting and telecommunication has accelerated. Convergent services have been introduced and telecommunication service providers and broadcasting companies alike are responding more seriously to this trend. Bundling services that incorporate TV, broadband Internet and telephone have emerged through the integration of networks. And the functions of cable TV and telecommunication network have grown more similar so as to put them in direct competition with one another. For instance, the digitalization of cable TV enabled the operators to provide broadband and interactive services. And meanwhile, the telecommunication service providers have continued to increase their bandwidth and thus are now able to add video streaming to their list of services. Inevitably the two areas begin to overlap and this leads to competition which will motivate them to develop further. The telecommunication service providers have been more active with their broadcasting business however this effort is yet to bear fruit. They are continuing to make huge investments but the positive effects of this vertical integration have not been obvious as of yet. Particularly, the opposition from the existing broadcasting companies remains a problem. When SkyLIfe wanted to retransmit the terrestrial broadcasting channels, the regional broadcasting companies fiercely objected. As can be seen, the convergence of broadcasting and telecommunication is not a smooth process. Mainly because the two areas are competing one another over who will take the initiative in the convergent service market. Therefore, even though there are some telecom operators already operating broadcasting businesses, convergence trend is not likely quicken its pace because of strong opposition from the broadcasting industry. Nevertheless, we can expect to see significant changes in the broadcasting management in the near future.