Paid broadcasting subscriber numbers fall as OTT on the rise

[Photo by MK DB]

The number of paid broadcasting subscribers in Korea declined in the second half of 2023 for the first time since surveys of paid broadcasting subscribers began in the second half of 2015.

According to the Ministry of Science and ICT on Thursday, the number of paid broadcasting subscribers in the second half of 2023 totaled 36,310,106, down 37,389 (0.1 percent) from the first half of 2023.

The decline is believed to be a result of cord-cutting, or the cancellation of television subscriptions, as viewers move to over-the-top (OTT) platforms.

By media type, the number of internet protocol TV (IPTV) subscribers grew steadily over the past three years to hit 20,925,902 in the second half of 2023, accounting for 57.63 percent of the total. Although this was an increase of 0.54 percent from the first half of the yerar, the growth trend is slowing down.

The number of system operator (SO) subscribers was 12,541,500 (34.54 percent) and the number of satellite broadcasting subscribers was 2,842,704 (7.83 percent) in the second half of 2023, down by 0.71 percent and 2.04 percent respectively compared to the first half of the year. The share of IPTV increased by 0.36 percentage points during this period, while SO and satellite broadcasting’s shares fell, decreasing by 0.21 percentage points and 0.15 percentage points respectively.

In terms of IPTV subscribers, KT Corp. leads with 8,827,392 (24.31 percent), followed by SK broadband Co. with 6,684,857 (18.41 percent) and LG Uplus Corp. with 5,413,653 (14.91 percent). LG HelloVision Corp. had 3,619,909 subscribers, or a 9.97 percent share, satellite broadcaster KT Skylife Co. had 2,842,704 subscribers, with a 7.83 percent share, and the number of subscribers to technology-neutral services was 77,825 as of December 2023. Technology-neutral services refer to the elimination of transmission method distinctions between pay-TV broadcasters, such as IPTV and cable TV. SK broadband, which first introduced technology-neutral services in May 2023, was the only multiple system operator to record an increase in subscribers and market share compared to the first half of 2023.