Should TV Subscription Fee Be Scrapped or Raised?
Published on | Source
By Lee Tae-hoon
Staff Reporter
KBS is seeking to increase the monthly fee it charges viewers, even as it faces criticism that it has neglected to improve its poor reception.
"KBS's most important task is raising the fee. I will make every effort to make it happen by next year", said Kim In-kyu, president of the network, in a speech during his inauguration last Tuesday.
Kim indicated that he wants to raise the charge to at least 4,820 won ($4.15) per month. It has remained at 2,500 won since 1981, due largely to poor reception quality.
Under the Broadcast Law, KBS is entitled to collect the fee, but is also required to offer high quality reception nationwide, regardless of demographic and geographical conditions.
Yet, despite repeated promises to improve reception over the past decades, the number of complaints of poor transmission has not dwindled.
KBS spent only 2.2 percent, or 160.5 billion won, of the 7.3 trillion won it collected in fees from 1973 to 2006 to enhance its transmission quality, according to Rep. Chang Yoon-seok of the governing Grand National Party (GNP).
In 2007, then-KBS President Jung Yun-joo vowed to inject a minimum of 30 billion won each year to resolve the long-standing problem, starting from 2008.
However, KBS spent merely 2 billion won to improve reception in 2008 and has allocated just 1.3 billion won for this year, GNP lawmaker Kim Hyo-jae said at a National Assembly inspection in October.
Kim also pointed out that the main reason people switch to pay TV services is the poor reception of major TV networks.
KBS, MBC and SBS had more than 80 percent of the market share in 2007, according to figures released by the Korea Press Foundation.
A recent survey conducted by DTV Korea shows that the number of pay TV viewers currently accounts for more than 85 percent of the country's total viewers; 72 percent of those subscribers switched to pay TV due to the bad reception of the major networks.
In contrast, only 3.5 percent of the 20.7 million households have been exempted from the fee due to poor reception.
Worsened Aerial Signals
But why is it that the vast majority of households still can't watch terrestrial channels without having to subscribe to pay TV?
"TV signals were quite good in my area even 10 to 20 years ago", said Choi Ji-ho, a resident living in Daejeon. "I could watch TV without having to get a fancy antenna or subscribe to a cable or satellite service".
Choi recently purchased an LCD TV but the only thing he could watch on it was static.
"Television sets manufactured in Korea do not come with antennas that can receive over-the-air TV signals anymore, basically because the reception is bad everywhere", a spokesman of LG Electronics said.
He said the quality of the aerial reception, especially in urban areas, has gotten worse because of the construction of high-rise buildings that block signals.
Still, KBS levies the fee on households with poor aerial reception. All households and businesses in Seoul are required to pay 2,500 won per TV as KBS has classified the entire city as an area that gets quality reception.
A senior technician at KBS claims that high quality reception from digital TV signals can be received in some 60 percent of households in the capital area with the help of a small indoor antenna that can be purchased at prices as low as 30,000 won.
KBS has been operating digital TV in Seoul and major cities in the country over the past several years.
Blame Game
The best way to receive a clear TV signal is by using an outdoor antenna installed on the roof.
Some go as far as to suspect that cable companies have deliberately inflicted damage to outdoor antennas in an attempt to increase the number of pay TV subscribers.
Kang Byung-ku, a Seoul resident, told The Korea Times that he had to file a complaint against a cable company to make them restore his apartment's antennas to their original state.
"I wanted to have only major channels because I did not want my children to be exposed to harmful channels", said Kang. "So I wondered why the reception was so poor in my area and later found that the cable that sends the signals of major networks had been cut by someone".
In 2007, KBS placed the blame on cable companies.
"Sixty-seven percent of the MATV system (outdoor public antennas) installed in apartments have become obsolete due to pay TV companies", said Jung, while serving as KBS president in 2007.
Jung claimed that cable companies were monopolizing the market by deliberately inflicting damage on antennas.
However, Kim Yong-bae, a senior official of the Korean Cable TV Association, said that Jung's claim was groundless. He said the association has yet to receive any formal complaints regarding the matter.
Fixing Antennas
In a 2008 nationwide survey of 2,500 TV holders living in apartments, DTV Korea found that 79 percent of their outdoor antennas were either disconnected or damaged.
"Under the law, janitors of apartments, who often have no technical skills, are responsible for maintaining and fixing the outdoor antennas", said a ranking official of the National Assembly Broadcasting and Communications Committee.
However, the report shows only 12.1 percent of apartment janitors answered that they could fix antennas without the help of a third party.
The official pointed out that the high penetration of cable companies is closely related to the maintenance of antennas.
Affordable Cable Plan
All cable companies have to provide a plan whose monthly service fee does not exceed 4,000 won, according to Kwon Hee-su, an official of the Korea Communications Commission (KCC).
Kwon explained that this was part of the commission's efforts to allow people living in fringe areas to watch major networks at a low cost.
However, some cable companies are reluctant to advertise such low-profit products.
"On top of the 2,500 won that I pay to KBS, I pay 8,000 won per month to the cable company. And I heard that this is one of the lowest figures", said Yoon Sang-hyun of Guri, Gyeonggi Province. "All I watch is programs from major networks. I am angry that KBS is trying to raise the fee without making any effort to improve its signal".
When asked what he would do if KBS raises the fee, Yoon said he would purchase a better outdoor antenna in hopes of saving money.
According to the KCC, cable companies are obligated to let their clients know of the 4,000 won option when asked about payment plans. Violators face a fine of 5 million won.
Staff Reporter
KBS is seeking to increase the monthly fee it charges viewers, even as it faces criticism that it has neglected to improve its poor reception.
"KBS's most important task is raising the fee. I will make every effort to make it happen by next year", said Kim In-kyu, president of the network, in a speech during his inauguration last Tuesday.
Kim indicated that he wants to raise the charge to at least 4,820 won ($4.15) per month. It has remained at 2,500 won since 1981, due largely to poor reception quality.
Under the Broadcast Law, KBS is entitled to collect the fee, but is also required to offer high quality reception nationwide, regardless of demographic and geographical conditions.
Yet, despite repeated promises to improve reception over the past decades, the number of complaints of poor transmission has not dwindled.
KBS spent only 2.2 percent, or 160.5 billion won, of the 7.3 trillion won it collected in fees from 1973 to 2006 to enhance its transmission quality, according to Rep. Chang Yoon-seok of the governing Grand National Party (GNP).
In 2007, then-KBS President Jung Yun-joo vowed to inject a minimum of 30 billion won each year to resolve the long-standing problem, starting from 2008.
However, KBS spent merely 2 billion won to improve reception in 2008 and has allocated just 1.3 billion won for this year, GNP lawmaker Kim Hyo-jae said at a National Assembly inspection in October.
Kim also pointed out that the main reason people switch to pay TV services is the poor reception of major TV networks.
KBS, MBC and SBS had more than 80 percent of the market share in 2007, according to figures released by the Korea Press Foundation.
A recent survey conducted by DTV Korea shows that the number of pay TV viewers currently accounts for more than 85 percent of the country's total viewers; 72 percent of those subscribers switched to pay TV due to the bad reception of the major networks.
In contrast, only 3.5 percent of the 20.7 million households have been exempted from the fee due to poor reception.
Worsened Aerial Signals
But why is it that the vast majority of households still can't watch terrestrial channels without having to subscribe to pay TV?
"TV signals were quite good in my area even 10 to 20 years ago", said Choi Ji-ho, a resident living in Daejeon. "I could watch TV without having to get a fancy antenna or subscribe to a cable or satellite service".
Choi recently purchased an LCD TV but the only thing he could watch on it was static.
"Television sets manufactured in Korea do not come with antennas that can receive over-the-air TV signals anymore, basically because the reception is bad everywhere", a spokesman of LG Electronics said.
He said the quality of the aerial reception, especially in urban areas, has gotten worse because of the construction of high-rise buildings that block signals.
Still, KBS levies the fee on households with poor aerial reception. All households and businesses in Seoul are required to pay 2,500 won per TV as KBS has classified the entire city as an area that gets quality reception.
A senior technician at KBS claims that high quality reception from digital TV signals can be received in some 60 percent of households in the capital area with the help of a small indoor antenna that can be purchased at prices as low as 30,000 won.
KBS has been operating digital TV in Seoul and major cities in the country over the past several years.
Blame Game
The best way to receive a clear TV signal is by using an outdoor antenna installed on the roof.
Some go as far as to suspect that cable companies have deliberately inflicted damage to outdoor antennas in an attempt to increase the number of pay TV subscribers.
Kang Byung-ku, a Seoul resident, told The Korea Times that he had to file a complaint against a cable company to make them restore his apartment's antennas to their original state.
"I wanted to have only major channels because I did not want my children to be exposed to harmful channels", said Kang. "So I wondered why the reception was so poor in my area and later found that the cable that sends the signals of major networks had been cut by someone".
In 2007, KBS placed the blame on cable companies.
"Sixty-seven percent of the MATV system (outdoor public antennas) installed in apartments have become obsolete due to pay TV companies", said Jung, while serving as KBS president in 2007.
Jung claimed that cable companies were monopolizing the market by deliberately inflicting damage on antennas.
However, Kim Yong-bae, a senior official of the Korean Cable TV Association, said that Jung's claim was groundless. He said the association has yet to receive any formal complaints regarding the matter.
Fixing Antennas
In a 2008 nationwide survey of 2,500 TV holders living in apartments, DTV Korea found that 79 percent of their outdoor antennas were either disconnected or damaged.
"Under the law, janitors of apartments, who often have no technical skills, are responsible for maintaining and fixing the outdoor antennas", said a ranking official of the National Assembly Broadcasting and Communications Committee.
However, the report shows only 12.1 percent of apartment janitors answered that they could fix antennas without the help of a third party.
The official pointed out that the high penetration of cable companies is closely related to the maintenance of antennas.
Affordable Cable Plan
All cable companies have to provide a plan whose monthly service fee does not exceed 4,000 won, according to Kwon Hee-su, an official of the Korea Communications Commission (KCC).
Kwon explained that this was part of the commission's efforts to allow people living in fringe areas to watch major networks at a low cost.
However, some cable companies are reluctant to advertise such low-profit products.
"On top of the 2,500 won that I pay to KBS, I pay 8,000 won per month to the cable company. And I heard that this is one of the lowest figures", said Yoon Sang-hyun of Guri, Gyeonggi Province. "All I watch is programs from major networks. I am angry that KBS is trying to raise the fee without making any effort to improve its signal".
When asked what he would do if KBS raises the fee, Yoon said he would purchase a better outdoor antenna in hopes of saving money.
According to the KCC, cable companies are obligated to let their clients know of the 4,000 won option when asked about payment plans. Violators face a fine of 5 million won.
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