[DigitalToday reporter Seul-gi Son] Cable TV operators and broadcasters are trading blame over LG HelloVision’s decision to end carriage of CJ ENM channels. The cable TV industry said adjusting content fees is unavoidable as the pay-TV market shrinks. Broadcasters countered that a unilateral channel shutdown could damage the trading order and viewers’ rights.

The SO council of the Korea Cable TV Broadcasting Association said in a statement on Monday that the root cause of the channel shutdown lies with some PP operators that have ignored the decline in the market value of pay TV and insisted only on fee levels from the past.

The dispute stems from content fee negotiations between LG HelloVision and CJ ENM. The two sides have failed to narrow differences over the fee calculation method since their previous contract ended in 2023. CJ ENM began legal procedures over unpaid fees, and LG HelloVision applied for broadcasting dispute mediation, but they did not reach an agreement.

LG HelloVision has decided to stop carrying four CJ ENM affiliate channels from Nov. 26: tvN Sports, tvN Show, Tooniverse and Zhonghua TV. The Broadcasting Media Communications Committee accepted last month a filing to change the relevant terms.

The SO council said some PP operators, including CJ ENM, are expanding their over-the-top video services and running a "quick VOD" service that provides the same content about 5 minutes after a live broadcast begins, weakening the distinctiveness of pay-TV content.

"It is a company’s freedom to diversify content distribution channels to generate new revenue," the council said. It asked whether it is reasonable to earn new revenue from OTT while seeking a full guarantee of existing fees from pay TV.

It also presented figures. The council said the ratings for a certain channel fell 20 percent from 2023 to 2025, and pay-TV operators’ subscribers declined 6.3 percent. It said the channel group’s audience share is 21.8 percent, but its share of programme fees for the overall general channel group exceeds 50 percent.

The council said PP operators did not accept various negotiating proposals during fee talks, including step-by-step fee reductions and channel adjustments. It said they filed a lawsuit seeking full fees under the previous contract and late-payment damages of up to 12 percent a year, without responding to government mediation and formal dispute resolution procedures under the Broadcasting Act.

On the acceptance of the filing to change terms by the Broadcasting Media Communications Committee, it said government guidelines do not permanently guarantee a specific PP’s channel carriage or existing revenue. It said the committee accepted the filing after comprehensively reviewing the long negotiation process and measures to protect viewers.

The Korea Broadcasting Channel Promotion Association, which represents the PP industry, said in a statement on Monday it regretted LG HelloVision’s decision to end the channels and the committee’s acceptance of the filing to change terms.

The association said the "Guidelines on Pay-TV Channel Contracts and Content Supply Procedures" prepared in 2021 through the pay-TV co-prosperity consultative body are standards for reasonable channel changes based on objective channel evaluations. It said LG HelloVision included even channels with strong performance in existing evaluations among those to be terminated and did not sufficiently reflect the results.

"This is an act that effectively renders existing guidelines and channel change procedures ineffective," the association said. It voiced concern that the committee’s acceptance could lead to other pay-TV operators unilaterally ending channels.

The PP industry also stressed that its business environment is worsening. The association said PP advertising revenue fell 32.8 percent to 1.1331 trillion won in 2025 from 1.6862 trillion won in 2021. It said the content supply base could weaken if fee cuts and channel shutdowns expand while the burden of content production investment continues.

The association said it recognises LG HelloVision’s management difficulties, including falling subscribers. It said that demanding fee cuts or halting channel carriage for that reason shifts the burden unilaterally onto PP operators.

It also said the committee should review again whether it sufficiently considered the impact on PP management and viewers’ rights when accepting the filing to change terms. It urged LG HelloVision to withdraw its decision to end the channels and called for stronger oversight and supervision by the committee.