New cable channels far below expectations

When four new cable channels launched on Dec. 1 last year, licensed to broadcast all types of programs ranging from news to entertainment, sports and dramas, expectations were high that it would pave the way for the birth of global media here.

But just one year later, the majority of the channels, referred to as “general programming channels” here, are suffering dismal viewership ratings. Low-quality program content and the channels’ conservative image contributed to the weak start, insiders say.

The four are all run by major newspaper companies in Korea ― Channel A run by the Dong-A Ilbo; TV Chosun run by the Chosun Ilbo; JTBC run by the JoongAng Ilbo; and MBN by the Maeil Business Newspaper. Previously, it was prohibited for newspaper companies to run broadcasting networks that air news programs, but the four selected claimed that the license would improve the quality of broadcasting content and diversify content distribution with the know-how of their parent companies. 

What they are facing now is less than 0.7-0.8 percent in weekly average viewership. In comparison, terrestrial TV station MBC’s daily rate garners around 4 percent of viewers.

“The four broadcasters are going against the general media consumption trend,” said Lee Taek-gwang, professor of department of cultural studies at Kyung Hee University.

“Viewers of terrestrial channels are loyal. They are mostly the elderly who don’t change channels much. Young people nowadays don’t watch TV at home but instead watch on mobile devices. So it’s hard to expect good viewer ratings,” he explained.

As viewer ratings remain stale, such networks tend to focus on producing more entertainment shows and include gossip on news programs in a desperate bid to attract viewers, while giving up costly dramas and quality programs.

According to an analysis of program listings of JTBC by professor Kim Mi-ra of Seoul Women’s University, in the beginning the broadcaster’s programming consisted of news programs (14 percent); educational programs (25.2 percent); dramas (37.1 percent) and entertainment shows (19.3 percent). But as of November, 90 percent of the programs are news and educational programs including reruns of documentaries aired on terrestrial TV stations, she wrote.

Lee of Kyung Hee University pointed out that if the four channels want to survive they need to come up with fresh content, which does not rehash the same old things.

“To find their own competitive edge, they need to come up with new ideas like Psy did with his ‘Gangnam Style,’ which people have never seen before,” he said. “If they can’t do it, they won’t survive.”

The broadcasters are also blamed for intensifying competition in hosting TV commercials.

Despite their marginal viewer ratings, the broadcasters are raking in a lot of money from commercials, one critic said.

“Advertisers without a choice have to place TV commercials on the channels because of their relationship with the parent newspaper companies,” said professor Shin Tae-seop of the department of advertising and public relations at Dong Eui University, on a PBC radio program on Nov. 14.

“The four TV stations are expected to earn 250 billion won annually for airing commercials. But the reality is that 50 percent of their programs are just reruns,” he said.

Still, the future is not so bright. Since the TV commercial market is already a red ocean, broadcasters will have a hard time finding advertisers willing to place ads with depressing ratings, experts say.

Kang Myung-hyun, professor at the school of communication at Hallym University, said the broadcasters will end up “cannibalizing” the existing market share. Lee of Kyung Hee University predicted that more companies, or advertisers, are shifting their marketing focus overseas and fewer companies will be willing to run TV commercials on the locally consumed channels.

He sees the only positive effect that the new general programming channels caused is creating more jobs in the media industry ― but with less job security.

“Without job security, it’s hard to push staff to generate good content,” he added.

It remains to be seen which channels will survive and which won’t in the next few years, according to experts.

“But right now, we don’t see a way out (of this problem),” said Kang. “Some will have to undergo mergers and acquisitions soon.” 

By Lee Woo-young (wylee@heraldcorp.com)