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[Apha Biz=(Chicago) Reporter Paul Lee] Hyundai Home Shopping has announced that it will stop sending programs through LG HelloVision from the end of next month.
As conflicts between TV home shopping companies and paid broadcasting companies continue over transmission fees, there are concerns that the suspension of home shopping transmission may become a reality.
According to the distribution industry on the 27th, Hyundai Home Shopping recently delivered the message during negotiations with LG HelloVision on transmission fees. LG Hello Vision subscribers in 23 regions, including Seoul (Yangcheon-gu, Eunpyeong-gu), Gyeonggi, Gangwon, Chungnam, and Gyeongbuk, are about 3.68 million, and if the suspension of transmission becomes a reality, LG Hello Vision subscribers will not be able to watch Hyundai home shopping channels on TV. However, in order to suspend the actual transmission, the subscribers must be notified for more than four weeks, so the actual suspension period is expected to be after October 1st.
Hyundai Home Shopping is the second home shopping company to stop broadcasting. Earlier, Lotte Home Shopping notified cable TV of cable TV operator Delive's Gangnam Cable TV that it would stop broadcasting from Oct. 1 and announced the fact on its website.
According to the Korea TV Home Shopping Association, the transmission fee was 1.9065 trillion won last year, up 33.3% from 2018 (1.4304 trillion won). On the other hand, sales in the TV home shopping industry fell 5.5 percent to 2.8998 trillion won from 3.701 trillion won during the same period. The proportion of transmission fees in sales has also increased. According to the Korea Communications Commission, the ratio of TV home shopping sales to commission fees increased from 28.3% in 2013 to 65.7% last year.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
