“If you sell 100 won, the fee alone exceeds 60 won”… TV Home Shopping, ‘Broadcast Suspended’ Bae Soo-jin

Due to the steeply rising transmission fee burden, TV home shopping companies hit Bae-jin, saying ‘stop broadcasting’. It is notifying paid broadcasters one after another that they will stop broadcasting if they do not lower their fees. If the conflict is not resolved, there is a concern that from October, viewers of paid broadcasting in the metropolitan area as well as all over the country will not be able to watch TV home shopping. Attention is focusing on whether the ‘Compensation Verification Consultative Body’, a government organization that helps resolve conflicts between home shopping companies and paid broadcasters, can play its role.

More than 3 million households, cut off home shopping broadcasting

On the 28th, CJ (001040) ENM Commerce ( CJ OnStyle) notified LG HelloVision to suspend contract renewal negotiations. An official from CJ OnStyle said, “The decision was made as a result of the failure to negotiate a reasonable transmission fee rate even though the TV home shopping business environment continues to deteriorate . ”he said. CJ OnStyle is poised to stop broadcasting LG HelloVision from October at the earliest if there is no progress in negotiations on transmission fees. Hyundai Home Shopping also sent an official letter to LG HelloVision

announcing the suspension of transmission fee negotiations the day before . If the suspension of transmission becomes a reality, you can watch paid broadcasts with LG HelloVision in 23 regions, including parts of Seoul (Yangcheon-gu and Eunpyeong-gu) and parts of Gyeonggi Province (Bucheon, Gimpo, Uijeongbu, Yangju, Dongducheon, Pocheon, and Yeoncheon), Gangwon, Chungnam, and Gyeongbuk . Viewers will not be able to watch CJ OnStyle and Hyundai Home Shopping channels. LG HelloVision subscribers in these regions amount to 3.68 million households.

Prior to this, Lotte Home Shopping notified D’Live Gangnam Cable TV , which had also been in conflict over transmission fees, that it would stop broadcasting from October. The home shopping GS Shop of

GS Retail (007070) also said, “We are in the process of negotiating transmission fees with pay TV operators, and we are closely monitoring the breakdown of negotiations with other companies.”

“Negotiations for fee reduction, only avoidance… I want an agreement”

This year, TV home shopping companies, in particular, took tough measures by citing the card to stop broadcasting because they recognized that the transmission fees demanded by paid broadcasters had reached an unaffordable level.

A transmission fee is the money that a home shopping company pays to a paid broadcaster, and is, in simple terms, a channel position fee. The home shopping industry is facing a situation where performance is declining due to the decline in consumption due to the economic recession , a sharp decline in the number of TV viewers, and the growth of e-commerce, but the burden of transmission fees is rising.

According to the industry, the combined operating profit of the top four home shopping companies (Hyundai , GS, CJ, and Lotte) in the second quarter of this year was 56 billion won, down by half (47%) from a year ago (106.5 billion won). Sales decreased by 7% from 1,223.8 billion won to 1,127.8 billion won. On the other hand, the transmission fees of home shopping companies increased by 31% in the last three years from 1.8394 trillion won in 2019 to 2.4101 trillion won in 2022. During the same period, the ratio of transmission commissions to broadcasting business sales soared from 49.6% to 64.9%. If you sell 100 won, you pay more than 60 won as a transmission fee.

As a result, home shopping companies have been continuously demanding the adjustment of transmission fees from paid broadcasters, but they have not been able to do so. An official from the industry said, “Even when we sent an official letter to negotiate a fee and contacted them, they either avoided it or remained silent.

Just TVHome shopping broadcasting has interests of home shopping companies and paid broadcasters, as well as home shopping partners and viewers, so home shopping companies are also in an atmosphere of wanting to avoid the ‘catastrophe’ of stopping broadcasting.

Accordingly, attention is focused on the role of the price토토사이트 verification consultative body according to the ‘Home Shopping Broadcasting Channel Usage Contract Guidelines’ prepared by the Ministry of Science and ICT. The Price Verification Consultative Body operates to resolve conflicts related to contracts when an agreement on transmission fees is not reached between home shopping companies and pay-TV operators or when one of the operators expresses its intention to end the negotiations.

An official from the home shopping industry said, “Since 2019, the price verification consultative body has not been operated, so it is questionable whether the consultative body will be operated again this time.” It is true that it does not. We hope that an amicable agreement can be reached.”

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