An analysis showed IPTV operators’ payment rate for broadcast content programme fees has become fixed in the high 20 percent range, staying at a notably low level compared with other content industries.

Lee Sung-min (이성민), a professor in the Department of Media and Video at Korea National Open University, said this on Tuesday as he presented ways to improve funding structures for a sustainable broadcast video content ecosystem at a Korea Broadcast Association seminar held at the Grand Central Auditorium.

According to Lee, as of 2024 the payment rate for programme fees for basic channels at general cable broadcasting operators (SO) was 72.6 percent, while IPTV stood at 28.7 percent. IPTV has not moved beyond the early-stage payment rate even though its broadcasting business revenue has grown rapidly.

The gap is more pronounced compared with other content industries. Webtoon creators’ revenue share is 70 percent, music providers receive 65 to 70 percent, and film investment distributors take 50 to 55 percent, while broadcast content producers (PP) receive only 28.7 percent from IPTV.

Lee recommended that the full revenue base be used when calculating appropriate programme fees, including home shopping transmission fees and the TV channel contribution within bundled products, in addition to basic channel subscription revenue. He also stressed the need for an incentive system that provides policy benefits such as investment tax credits or eased fund obligations for platform operators that pay higher content fees.

Discussants at the seminar included Choi Yong-jun of Jeonbuk National University, Kang Shin-gyu of the Korea Broadcast Advertising Corp, Kim Yong-hee of Sunmoon University, Noh Chang-hee of the Digital Industry Policy Research Institute, Byun Sang-kyu of Hoseo University and Hong Jong-yoon of Seoul National University.