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Korea Communication Market Data 

Pay TV: Home-Shopping Channel Commission Revenue in Korea

 
 
 
 
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1. Market share of home-shopping channel commission revenue- by platform, 2012 - 2016

2. Market share of home-shopping channel commission revenue- by provider, 2012 - 2016

 

- In 2016, home shopping channel commission revenue of pay TV providers went up to KRW1,256bn, increasing 10.7% year-over-year, at a higher growth rate than total pay TV revenue (9.4%)

- Of the total pay TV revenue, home shopping channel commission accounted for 24.3% share, following basic channel subscription charge with the highest share of 39.4%

 

• Data: Korea Communication Commission (KCC)

 
     

 

 

     
1   Home-Shopping Channel Commission Revenue Market Share - by Platform, 2012-2016  
   

 

Sources: 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, cable TV managed to hold the largest share of 61.1% in home shopping channel commission revenue, but was closely followed by fast growing rivals in the market, IPTV and satellite TV as seen in Figure above. In fact, the share of cable TV in the commission revenue had experienced a significant decline from 81.7% in 2012 to 61.1% in 2016.


IPTV, the latest to join the pay TV market, but with rapidly growing, high-income subscribers, has been able to get better deals than cable TV in negotiating of the commission with home shopping networks. In 2016, IPTV recorded a revenue of KRW337bn, a phenomenal 40.1% year-over-year growth after a steady rise of the market share for three consecutive years from 2014 (from 16.9% to 21.2%,and then to 26.8%).


IPTV subscription reached 12.9 million in 2016, which accounted for 43.0% of the total pay TV subscribers (30.0 million). But of the total commission revenue (KRW1,256bn), IPTV’s contribution was only 26.8% (KRW337bn), and its commission revenue is very likely to grow further.

 

 

 

     
2   Home-Shopping Channel Commission Revenue Market Share - by Provider, 2012-2016  
   

 

Sources: 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.

 

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