Reasons for Proposal
Under Article 8 of the current Act, no specific CATV or satellite broadcasting business entity shall provide a service in excess of 1/3 of the total number of subscribers to pay television services, including Internet multimedia broadcasting, by adding up the number of the subscribers to the broadcasting business entities who are related parties to the relevant business entity, which is a “total market share regulation for pay television,” whose aim is to prevent a specific broadcasting business entity from dominating the communications market.
However, the effect of this regulation will only remain until June 27, 2018, after which the diversity of broadcasting and fair competition in the broadcasting market may be undermined due to a market monopoly by a specific broadcasting business entity, causing viewers to suffer.
There is a need for a comprehensive regulatory device for pay television to attain the policy goal of applying the same regulations to the same service, restrict monopolistic dominance of specific business entities in broadcasting services, and thus create a market environment that enables balanced growth among the different types of media, thereby ensuring the diversity of broadcasting and contributing to the promotion of the rights and interests of viewers.
Accordingly, this Amendment modifies the valid term of the total market share regulation for specific CATV broadcasting business entities, specific satellite broadcasting business entities, and other pay television services, including related parties (Act no. 13341, Partial Amendment to the Broadcasting Act, Addenda Article 2).
Major Provisions
Extend the valid term of the total market share regulation for specific CATV broadcasting business entities, specific satellite broadcasting business entities, and other pay television services, including related parties, to June 27, 2020 (Act no. 13341, Partial Amendment to the Broadcasting Act, Addenda Article 2).