DOI QR코드

DOI QR Code

The Survival of Paid Broadcasting Channels in Korea, 1993-2010

  • Kwak, Kyu Tae (Department of Technology and Business Administration, Yonsei University) ;
  • Song, Kyung Hee (Department of Technology and Business Administration, Yonsei University) ;
  • Park, Soo Kyung (Department of Technology and Business Administration, Yonsei University) ;
  • Lee, Bong Gyou (Graduate School of Information, Yonsei University)
  • Received : 2013.12.19
  • Accepted : 2014.01.21
  • Published : 2014.02.27

Abstract

This study investigates the decisive factors affecting the survival or collapse of cable networks in the Korean paid broadcasting market from 1993 to 2010. The effects of performance variables discussed in previous studies were verified through survival analyses. According to the results, the most influential factors in the survival of cable networks were horizontal integration (MPP), channel genre, the scheduling of HDTV content, and the proportion of access program scheduling. These findings imply that the differentiation strategy of content suppliers is the most decisive factor among all business performance-related factors. Specifically, the content supply power and strategy of the program provider (PP) have the greatest influence on cable network viability. The present study is meaningful as the first attempt to establish the performance of PPs in Korean pay broadcasting markets through the viewpoint of organizational mortality. Accordingly, the present study can supplement the results of cross-sectional studies conducted with smaller samples.

Keywords

References

  1. Korean Communication Commission, 2001-2012 Broadcasting Industry Status Research Report, Korea Communications Commission, Seoul, 2012.
  2. S.L. Levin and J.B. Meisel, "Cable Television and Competition: Theory, Evidence and Policy," Telecommunications Policy, vol.15, no.6, pp.519-528, 1991. https://doi.org/10.1016/0308-5961(91)90006-W
  3. K.T. Kwak and S.K. Choi, "A Study of the Horizontal Ownership Limits on MSO for Diversity of PP: Focused on Open Field Approaches of Korean Multichannel Paid Broadcasting Market," Journal of Media Economics & Culture, vol.11, no.1, pp.7-46, 2013.
  4. Digital Times (2013.09.14.) Available: http://www.dt.co.kr/contents.html?article_no=2013092502010831759003
  5. S.M. Youn and H.W. Lee, "Policy Proposals for Normalizing PPs (Program Providers) in Korean Pay-TV Market," Korean Telecommunications Policy Review, vol.18, no.3, pp.23-56, 2011.
  6. Y.V. Kim and S.M. Yoon, "A Study on the Effects of the Must-carry of Public Interest Channels: Focusing the Change in the Diversity within Art & Culture," Korean Journal of Broadcasting & Telecommunications Research, no.73, pp.201-233, 2011.
  7. H.S. Jeon, "Horizontal Integration and Market Foreclosure in MVPD," Korean Journal of Journalism & Communication Studies, vol.51, no.3, pp.119-141, 2007.
  8. H.C. Ryo, J.B. Kim and S.S. Lee, "A Study on Strategic Groups of Program Providers (PP) and the Performance in Korea," Journal of Communication & Information, vol.46, pp.387-419, 2009.
  9. G.J. Stigler, "Monopoly and Oligopoly by Merger," American Economics Review, vol.40, no.2, pp.23-34, 1950.
  10. D. Waterman and A.A. Weiss, "The Effects of Vertical Integration between Cable Television Systems and Pay Cable Networks," Journal of Econometrics, vol.72, no.12, pp.357-395, 1996. https://doi.org/10.1016/0304-4076(94)01726-3
  11. S.J. Hwang and Y.J. Jung, "Study on Changes of Diversity after the Introduction of Registration System in Cable PP Market," Korean Journal of Broadcasting, vol.19, no.2, pp.200-239, 2005.
  12. M.E. Porter, "The Contributions of Industrial Organization to Strategic Management," Academy of Management Review, vol.6, no.4, pp.609-620, 1981.
  13. M.A. Salinger, "Vertical Mergers and Market Foreclosure," Quarterly Journal of Economics, vol.103, no.2, pp.345-356, 1988. https://doi.org/10.2307/1885117
  14. E.M. Noam, Video Media Competition: Regulation, Economics and Technology, Columbia University Press, New York, 1985.
  15. B.M. Owen and P.R. Greenhalgh, "Competitive Considerations in Cable Franchising," Contemporary Economic Policy, vol.4, no.2, pp.69-79, 1986. https://doi.org/10.1111/j.1465-7287.1986.tb00843.x
  16. O.E. Williamson, The Economic Institutions of Capitalism, Free Press, New York, 1985.
  17. H. Ahn and B.R. Litman, "Vertical Integration and Consumer Welfare in the Cable Industry," Journal of Broadcasting & Electronic Media, vol.41, no.4, pp.453-477, 1997. https://doi.org/10.1080/08838159709364421
  18. S.M. Chan-Olmsted and J.C.C. Li, "Strategic Competition in the Multichannel Video Programming Market: An Intra-industry Strategic Group Study of Cable Programming Networks," Journal of Media Economics, vol.10, no.1, pp.39-49, 2002.
  19. S.W. Kang, "Exclusive Distribution in Broadcasting Markets," Korean Telecommunications Policy Review, vol.17, no.2, pp.79-106, 2010.
  20. S.W. Lee, "A Prospect for Competition in Korea's Multi-channel Video Programming Distribution (MVPD) Market - The Effect of IPTV Services," Broadcasting & Communication, vol.9, no.2, pp.129-164, 2008.
  21. J.S. Bain, Barriers to New Competition, Harvard University Press, Cambridge, 1993.
  22. E.S. Mason, "Price and Production Policies of Large-scale Enterprises," American Economic Review, vol.29, no.1, pp.61-74, 1939.
  23. M.E. Porter, Competitive Advantage, New York, Free Press, 1980.
  24. J. Barney, "Firm Resources and Sustained Competitive Advantage," Journal of Management, vol.17, no.1, pp.99-120, 1991.
  25. E. Penrose, The Theory of the Growth of the Firm, Wiley, New York, 1959.
  26. B. Wernerfelt, "A Resource based View of the Firm," Strategic Management Journal, vol.5, no.2, pp.171-180, 1984. https://doi.org/10.1002/smj.4250050207
  27. R.E. Hoskisson, M.A. Hitt, W.P. Wan and D. Yiu, "Theory and Research in Strategic Management: Swings of a Pendulum," Journal of Management, vol.25, no.3, pp.417-456, 1999.
  28. M.J. Lenox, S.F. Rockart and A.Y. Lewin, "Interdependency, Competition and Industry Dynamics,, Management Science, vol.53, no.4, pp.599-615, 2007. https://doi.org/10.1287/mnsc.1060.0679
  29. D.H. Kim, E.M. Kim and C.R. Ryu, "Determinants of Market Performance in the Case of Cable Networks in Korea: An Analysis of Programming Characteristics, Ratings, and Costs," Korean Journal of Journalism & Communication Studies, vol.45, no.3, pp.39-68, 2001.
  30. S.R. Park, "A Study on the Factors that Determine the Performance of Terrestrial Outsourced Programs," Korean Journal of Journalism & Communication studies, vol.46, no.2, pp.341-379, 2002.
  31. S.K. Choi, S.H. Yang and J.Y. Kim, "Elements Affecting the Performance of Broadcast Programs: Program Quality, Audience, and Economic Performances," Korean Journal of Broadcasting & Telecommunications Research, no.62, pp.171-199, 2006.
  32. K.S. Brown, A Survival Analysis of Cable Networks, Media Bureau Staff Research Paper, Federal Communications Commission, 2004.
  33. I.S. Jung, "An Evaluation of Broadcaster Licensing Policy in Korea since 1990," Korean Association for Communication and Information Studies, no.18, pp.199-229, 2002.
  34. Y.J. Kim and H.Y. Kwon, "A Study on Determinants of Program Provider's Market Performance," Korean Journal of Journalism & Communication Studies, vol.45, no.5, pp.138-160, 2004.
  35. J.H. Do and H.Y. Oh, "A Study of the Effectiveness of Must Carry Rule of Public Interest Channel," Broadcasting & Communication, vol.11, no.2, pp.243-268, 2010.
  36. T. Chipty, Vertical Integration and Market Foreclosure: Evidence from the Cable Television Industry, Revised Version of Ch.3 of his MIT Dissertation, 1994.
  37. E.M. Kim, "Analysis of the Meaning of Market Entry Order in the Program Provisioning Business," Cyber Communication Journal, vol.4, pp.105-127, 1999.
  38. D. Machin, Y.B. Cheung and M. Parmar, Survival Analysis: a Practical Approach (2nd Edition), John Wiley & Sons, Ltd. UK, 2006.
  39. J.M. Park, Theory and Practice of Survival Analysis, Singwang Publishing Co. Korea, 2006.
  40. R.B. Bendel and A.A Afifi, "Comparison of Stopping Rules in Forward Regression," Journal of the American Statistical Association, vol.72, pp.46-53, 1977.
  41. R.M. Mickey and S. Greenland, "The Impact of Confounder Selection Criteria on Effect Estimation," American Journal of Epidemiology, vol.129, no.1, pp. 125-137, 1988.
  42. H.Y. Kwon, "A Strategic Group and Performance Study of Cable Programming Networks," Korean Journal of Broadcasting & Telecommunications Research, no.60, pp.187-212, 2005.