The government has indicated that it plans to issue a corrective order and has received opinions regarding the resolution of the broadcasting blackout resulting from the breakdown of negotiation over transmission fees between home shopping channel CJ OnStyle and three cable TV companies. Based on this, the government intends to finalize the corrective order as soon as possible.
According to the paid broadcasting industry on the 25th, the Ministry of Science and ICT recently warned CJ OnStyle and the cable TV operators D Live, Arum Broadcasting, and CCS Chungbuk Broadcasting about violations of the Broadcasting Act and has received opinions concerning this. The Ministry of Science and ICT is said to have required the resumption of home shopping broadcasts from the operators while issuing the preliminary notification of the corrective order.
CJ OnStyle suspended broadcasting on the 5th against the three cable TV operators with whom it was having a conflict over channel transmission fees. The Ministry of Science and ICT operated a price verification committee just before the transmission suspension occurred in an effort to mediate the conflict between the two sides. Typically, when the price verification committee is in operation, transmission suspension is not prioritized, but this time, it seems that the suspension has unusually materialized.
The Ministry of Science and ICT believes that both sides have violated the Broadcasting Act, including the "guidelines for the use of home shopping broadcast channels," which will be reflected in the re-approval of home shopping and the re-licensing of paid broadcasting. The guidelines include management plans for the price verification committee, roles, criteria, the protection of operators during negotiation periods, and factors to be considered for price setting.
In particular, to protect viewers from the suspension of broadcasting, it is stated that home shopping operators and paid broadcasting companies can suspend the provision or broadcasting of home shopping channels only when they clearly agree on the suspension.
Additionally, it is specified that the price verification committee will verify whether operators comply with the guidelines, such as the principle of sincere negotiation and the prohibition of forcing unfavorable transmission fees, and will assess whether the values of factors considered in price negotiations are appropriate. If the home shopping operators and paid broadcasting companies violate these guidelines, it is also mentioned that necessary measures can be taken according to relevant laws.
It has been reported that the operators reiterated their existing positions in the opinions submitted to the Ministry of Science and ICT. CJ OnStyle argues that a reduction in fees is necessary due to a sharp decline in TV ratings and worsening performance. Conversely, the cable TV industry contends that the rate of reduction demanded by CJ OnStyle is excessive, claiming that there is a lack of precise justification.
The Ministry of Science and ICT plans to finalize the corrective order based on the submitted opinions. The final notification is set to be implemented as soon as possible. A representative from the Ministry noted, "The confirmation of the corrective order could happen as early as this week," and added, "If the corrective order is not complied with, a penalty surcharge may be imposed, and if it is still not followed, more severe actions could be taken."