Cable TV subscribers purchased items more frequently through TV home shopping than through other paid broadcasting platforms. However, a survey found that the per-subscriber broadcasting fee is the lowest.
The Korean Association for Journalism and Communication Studies hosted a special seminar titled "Resolving Home Shopping-Paid Broadcasting Disputes and Seeking Rational Solutions" at the Kim Dae-jung Convention Center in Gwangju. Professor Jeong Yoon-jae from Hankuk University of Foreign Studies noted in his presentation that "Cable TV receives a lower broadcasting fee compared to other paid broadcasts relative to its actual consumer contribution," adding that "there is a need to redesign the current broadcasting fee calculation system to reflect factors affecting home shopping sales performance such as consumers' actual usage behavior and patterns."
Professor Jeong presented the results of a survey conducted with 594 men and women aged 20 to 59 who had experience purchasing products after watching TV home shopping. The analysis showed that cable TV 8VSB subscribers recorded an average of 2.2 purchases per month, which is higher than ▲QAM (1.8 purchases) ▲Internet (IP) TV (1.7 purchases) ▲satellite broadcasting (1.7 purchases). 8VSB (8-level vestigial sideband) refers to a transmission method used in digital terrestrial broadcasting that allows stable reception while reducing signal bandwidth. QAM (Quadrature Amplitude Modulation) is a modulation technology that transmits digital data over an analog carrier wave and is the transmission method used in digital cable broadcasting.
Additionally, 80.6% of respondents identified TV home shopping broadcasts as the channel through which they first recognized a product. Responses indicating "formed interest" were at 80.1%, while those indicating "formed purchase intent" were at 79%. In contrast, the contribution rate of internet and mobile live commerce was averaged at 18.7%, while other factors such as friend recommendations and reviews accounted for only 1.4%.
Professor Jeong said, "TV home shopping remains a crucial channel in consumers' purchasing decision processes," adding that "the high average monthly purchase frequency of cable TV subscribers supports this influence."
Consequently, there are claims that the broadcasting fee structure needs to be revised to consider consumer contributions. As of last year, the per-subscriber broadcasting fee paid by TV home shopping corporations to paid broadcasting operators remained the lowest for cable TV. The change rate of per-subscriber broadcasting fees from 2018 to 2024 showed an increase of ▲IPTV 59.2% ▲satellite broadcasting 15.4%. In contrast, cable TV only saw a 5.6% increase.
Professor Jeong noted, "Since 2022, the gap in per-subscriber broadcasting fees among paid broadcasting platforms has widened significantly," and added, "Even after analyzing media indicators such as subscriber counts, viewer ratings, and expected viewer counts, no rational grounds were found to explain the gap." He further emphasized, "The only significant variable identified was the average monthly purchase frequency, and despite cable subscribers showing the highest purchase frequency, they are receiving a lower broadcasting fee."
Professor Jeong also noted that "the conflict of interest between TV home shopping corporations and broadcasting operators, as well as information asymmetry, are widening the perspectives on broadcasting fees." He advised on the need for ▲transparency and consistency in the calculation system through verification by a third neutral organization and data standardization ▲reflecting changes in consumer and market environments that can encompass purchases made through mobile and web after broadcasting ▲enhancing negotiation and dispute resolution systems to complement the limitations of inter-operator negotiations ▲supporting data-driven policy research utilizing panel data and big data.