Cable TV Companies to Transform into Multimedia CompaniesCable TV companies are rushing to collaborate with large corporations to gain a foothold into the satellite and Internet broadcasting business.
Cable companies increasingly feel that they must transform themselves into media companies in order to survive. In April alone, two large mergers were carried out in the industry.
Art and Cinema TV (A&C; Channel 37) reached an agreement with Korea Telecom on April 4 to form a satellite broadcast consortium. A&C announced that if Korea Telecom is chosen to undertake a leading role in the satellite broadcasting business, A&C will invest some $5 million into making three different art, cinema, and comedy channels. The cable TV industy forcasts that, "Though this is the first time a cable television company has participated in a satellite broadcasting consortium, more agreements of this sort are sure to follow."
A&C is planning to transform itself into an independent corporation with a total capital of $10.4 million sometime in May and plunge into the Internet broadcasting business.
Along with A&C, Music channel KMTV signed a contract with Hyundai Corporation on April 5, to cooperate in promoting Internet broadcasting. Taking advantage of KMTV's variety of content and Hyundai's technological know-how in e-commerce, they are trying to create a new form of Internet broadcasting.
On*Media, which owns four cable channels, including two movie channels; Catch One, OCN, cartoon channel Tooniverse, and Badook TV, opened its Internet homepage (www.onmedia.co.kr) on April 6. On*Media plans to use the homepage to get feedback on their programming from the public.
by Kang Chan-ho