New York Times: What Convergence? TVs Hesitant March to the Net

An article in today's New York Times just illustrates that the United States is on another planet than Korea when it comes to media convergence and offering of television services via the internet.  Three major providers here are now agressively marketing IPTV services, bundled with attractive voice and data services in so-called "triple-play" packages.  The government, through the newly-established Korea Communications Commission, is trying to remove obstacles to "convergence," as if to say "bring it on!"  Meanwhile, in the United States, many are suggesting that it will be a slow transition to the inevitable.  The debate discussed in the New York Times never took place here, nor will it, and we are moving on to other things.  I'm not suggesting that it will be a completely easy road ahead, but as a consumer, I'm happy to live in the Korean media market versus that of the U.S., thank you.

Revenue Problems for Korea's DMB Industry

Despite healthy levels of viewership, the latest reports suggest that advertising levels on South Korea's Digital Multimedia Broadcasting services are not providing enough income to sustain the business.  As a result, according to The Korea Times , the nation's six terrestrial DMB operators are considering halting their coverage on subway lines in a desperate move to shed costs and keep the business afloat.  Less than three years ago they had jointly invested to complete transmission networks in subway lines, allowing commuters to watch World Cup football games.
The number of viewers has not been a problem. About one-third of all Koreans have access to mobile television, dubbed digital multimedia broadcasting (DMB) here, with free terrestrial DMB services garnering around 16 million users and another 1.8 million subscribed to satellite-based DMB, a pay-T.V. service provided by TU Media.
Instead, finding reliable revenue streams for the DMB services has been the major challenge.  Since terrestrial DMB services are free for users with television-enabled terminals, advertising is the only source of revenue for the operators.