Home shopping broadcasts are going to stop… Notice of suspension of transmission of CJ OnStyle

The unprecedented ‘home shopping blackout’ is in danger of spreading. This is because negotiations on transmission fees between home shopping companies and pay TV operators have been suspended one after another. Following Lotte Home Shopping, major home shopping channels such as Hyundai and CJ OnStyle terminated contracts with home shopping companies and some pay TV operators due to conflicts over transmission fees. The difference in position between the two sides is large, so the possibility of a blackout becoming a reality cannot be ruled out.

According to the industry on the 28th, CJ OnStyle notified LG HelloVision, a cable TV operator , to stop broadcasting from October. OnStyle said, “We are in the process of terminating the contract as the basic consultation period specified in the government’s ‘Home Shopping Transmission Fee Guidelines Amendment’ has ended.” Last year, CJ OnStyle earned 58.2 billion won in TV broadcasting sales from LG HelloVision , and transmission commissions accounted for about 60%. OnStyle said, “When the industry was booming, we paid 2-3 times the transmission fee compared to the growth in billings every year, but now, due to deteriorating profitability, realistic transmission fee negotiations are not a consideration, but a necessity.” Even after years of suffering, LG

Prior to this , Lotte Home Shopping also announced that it would stop broadcasting from 0:00 on October 1st due to the termination of its broadcast transmission contract with

D’Live Gangnam Cable TV

. Hyundai Home Shopping also notified LG HelloVision that it would stop broadcasting.If the suspension becomes a reality, Seoul (Yangcheon-gu, Eunpyeong-gu), Gyeonggi (Bucheon, Gimpo, Uijeongbu, Yangju토토사이트, Dongducheon, Pocheon, Yeoncheon), Gangwon, and Chungnam Viewers who watch paid broadcasts on LG HelloVision in 23 regions, including , Gyeongbuk, etc., will not be able to watch CJ OnStyle and Hyundai Home Shopping. There are 3.68 million LG HelloVision subscribers in these regions. In fact , the scale of transmission commissions last year was 1.9065 trillion won, an increase of 33.3% compared to 2018 (1.4304 trillion won). According to the Korea TV Home Shopping Association, transmission commissions average 8% per year. In contrast , in the second quarter of this year, the top four home shopping companies (Hyundai , GS, CJ,

Lotte)’s total operating profit plummeted to 56 billion won, a 47% increase from a year ago (106.5 billion won). Sales decreased by 7% from 1,223.8 billion won to 1,127.8 billion won. Nevertheless, the transmission fees of home shopping companies increased by 31% in the last three years from 1.8394 trillion won in 2019 to 2.4101 trillion won in 2022. During the same period, the ratio of transmission commissions to broadcasting business sales soared from 49.6% to 64.9%. If you sell 100 won, you pay more than 60 won as a transmission fee.

However, TV home shopping broadcasting has various interests, such as home shopping companies and paid broadcasters, as well as home shopping partners and viewers, so the atmosphere that home shopping companies do not want catastrophe is sensed.

On the other hand, on October 4, Lee Sang-rok, former presidential campaign spokesperson Yoon Seok-yeol (former Public Relations Officer of the Anti-Corruption and Civil Rights Commission), took office as the new head of the Korea TV Home Shopping Association.

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