Parliament's recent approval of a new, integrated broadcasting bill
looks set to spark a wave of programming and capital alliances between
Korean and foreign broadcasting companies.
Rupert Murdoch's News Corporation, which is seeking a joint venture with
DSM, is reported to be in negotiations with the government and other
relevant parties for a capital investment to establish Korea's first
satellite digital broadcasting system.
On another front, Korea Telecom is said to be in talks with Japanese and
European companies to set up a similar strategic alliance.
CNBC, which currently supplies economic and financial news programming
to MBN, is likely to strengthen its powerbase in the country. Discovery
Channel, meanwhile, is expected to have in place its own cable or
satellite channel.
In addition, the largest cable programme provider in Korea is in talks
to receive programmes from Walt Disney or Fox.
Foreign companies are now able to take a 33 per cent share in Korea's
cable or satellite channels. Cable system operators and cable relay
operators can also cross-holding stakes, widening their business
areas.
Meanwhile, the new bill is likely to attract more cable TV
subscribers.
JH Cha, an analyst at Hyundai Securites, has forecast that the number of
household cable subscription will jump almost 40 per cent per year over
the next two years. There are currently some 2.3 million
subscribers.
Because of the large number of subscribers, the country's largest
shopping channel, LG Home Shopping, will likely see net profits soaring
about 175 per cent this year on the back of a 57 per cent surge in
sales.
