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[Alpha Biz=(Chicago) Reporter Kim Jisun] According to the industry on the 29th, Hyundai Home Shopping and CJ On Style recently notified LG HelloVision that they would stop broadcasting after the end of next month.
If the transmission suspension becomes a reality, viewers who watch paid broadcasting with LG Hello Vision will not be able to watch Hyundai Home Shopping and CJ On-Style channels in 23 regions including Seoul (Yangcheon-gu, Eunpyeong-gu), Gyeonggi (Bucheon, Gimpo, Uijeongbu, Yangju, Dongducheon, Pocheon, Yeoncheon), Gangwon, Chungnam, and Gyeongbuk.
LG HelloVision subscribers in these areas are known to be 3.68 million households. However, even in the same area, you can watch home shopping channels if you watch paid broadcasts on Internet TV (IPTV) such as SK Broadband, KT, and LG Uplus, not LG HelloVision. Earlier, Lotte Home Shopping announced to Delive Gangnam Cable TV that it would stop broadcasting from October.
The conflict over transmission fees is a long-standing problem, but it is the first time that a home shopping company has voluntarily decided to stop broadcasting.
The transmission fee is a channel fee paid by a home shopping company to a paid broadcasting service provider. Last year, the amount of transmission fees was 1.9065 trillion won, up 33.3% from 2018 (1.4304 trillion won). According to the Korea TV Home Shopping Association, transmission fees increased by an average of 8% per year, accounting for 65.7% of transmission fees compared to the amount of air freight (the total amount of products sold) last year. In other words, about two-thirds of the price of goods sold through broadcasting is paid for transmission fees.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
