Korea Communication Market Data  Pay TV: Pay TV Revenue in Korea

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	1. Pay TV revenue in Korea - by platform, 2006 - 2016 2. Pay TV revenue in Korea - by provider, 2006 - 2016   • Pay TV Platform: IPTV, Cable TV and Satellite TV • Data: Korea Communication Commission (KCC)

 

 

1

Pay TV Revenue in Korea - by Platform, 2006-2016

 

 

Source: Korea Communication Commission (KCC)

Note: The Dollar amounts shown for the years ended December 31, 2016, 2015, 2014, 2013 and 2012 were translated at the rate of KRW 1,203.7 to US$1.00, KRW1,169.3 to US$1.00, KRW 1,090.9 to US$1.00, KRW 1,055.3 to US$1.00 and KRW 1,063.2 to US$1.00, respectively.

 

In 2016, pay TV (Cable TV, satellite TV and IPTV) providers reported a total revenue of KRW5,162bn, up by 9.4% from the previous year at KRW4,717bn. CAGR showed a steady increase of 11.7% from 2009 through 2016.

Cable TV revenue in 2016 went down by 4.0% to KRW2,169bn from the previous year, and its share in the total pay TV revenue also declined to 42.0% down by 5.9%p on the same period.
After hitting a record high in 2013, cable TV revenue has been on a decline. And its share in the pay TV market also went down below 50% in 2015, and then further down to 42.0% in 2016, when it was finally outpaced by IPTV at 47.0% for the first time.

Satellite TV revenue in 2016 was KRW566bn up by 2.9% from 2015, and the share in the total pay TV revenue was 11.0%, down by 0.7%p from a year ago.

IPTV revenue went up 27.2% year-on-year at KRW2,428bn, and the share in the total pay TV revenue was 47.0% up from the previous year by 6.6%p.
Having rapidly grown since its launch in 2009, IPTV subscription reached \2,428bn in 2016. In 2016, IPTV revenue outstripped cable TV's for the first time, positioning the platform as a key engine that drives growth in the pay TV market.

 

 

2

Pay TV Revenue in Korea - by Provider, 2008-2016

 

Sources: Korea Communication Commission (KCC)

 

As seen in Figure above, the revenue of KT, one of the big three IPTV service providers in the nation, was up 24.9% year-over-year at KRW1,037bn (accounting 20.1% of the total pay TV revenue) in 2016, remaining No. 1 with the highest market share for two consecutive years. SK Broadband, with the 3rd highest share in 2015, had revenue of KRW792bn (32.3% year-over-year increase) and a market share of 15.3% in 2016, becoming No. 2 in the market. At this point, there is no doubt that it will be the big three IPTV providers who will be dominating the market by 2017.
The difference of share in revenue between top two providers has increased from 3.4%p (between KT IPTV and CJ cable TV) in 2015 to 4.7%p (between KT IPTV and SK Broadband IPTV) in 2016.
Skylife, a satellite TV service provider, had revenue of KRW566bn slightly up by 2.9% from the previous year. Unlike rapidly expanding IPTV providers, cable providers who once took the lead in the market are now falling and struggling with declining share.
KT-associated KT IPTV and KT Skylife Satellite TV had share of 31.0%, up by 1.8%p from 29.3% in the previous year.