South Korean cellular operators might end their free mobile television service in the country’s subways, and cellular subscribers don’t want it to end, reports The Los Angeles Times.
“Reeling from declining ad revenue and mounting debt from providing the expensive service at no additional cost to subscribers, South Korean cellular operators may soon cancel subway TV coverage that has yet to turn a profit,” the article says. Mobile TV services will continue to be available above ground.
Almost 10 million South Koreans watch mobile TV. In Seoul, cellular operators offer eight mobile TV channels and ten audio channels. Korea also has subscription-based satellite mobile TV, but relatively few people have purchased it, the article notes.
Dilemma of users versus profits
I’ve followed the South Korean mobile TV business since it started several years ago. Mobile TV in the country is indeed popular, but its popularity is due in great part to the lack of any subscription fee.
Unfortunately, this free, ad-supported model isn’t generating sufficient revenues and cellular operators are losing a significant amount of money. In the United States, this model is being promoted by the Open Mobile Video Coalition whose TV broadcast members are working to offer free TV this year.
It will be interesting — to say the least — to see if the association’s vision will become both popular with consumers and profitable for broadcasters.
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