(JBE Vol. 23, No. 6, November 2018) (Regular Paper) 23 6, 2018 11 (JBE Vol. 23, No. 6, November 2018) https://doi.org/10.5909/jbe.2018.23.6.824 ISSN 2287-9137 (Online) ISSN 1226-7953 (Print) TV 8VSB a), a) A Study on the Impact of Cable TV 8VSB Conversion on Subscriber Retention and Consumer Welfare Kim Jee-Hoon a) and Yeong-Ju Lee a) 8VSB TV TV,. TV 8VSB., 8VSB, VOD. 8VSB PP.. Abstract In this study, the impact on the number of cable TV subscribers as well as the profit of cable TV has been examined, and the impact on enlarging the digital broadcast viewing rights of cable TV subscribers and viewers welfare has also been examined. We investigated the trends in the number of analog and 8VSB subscribers and revenue of cable TV operators by region and analyzed based on changes in the number of channels provided by each operator. The results show that analog subscribers and digital subscribers are delaying their departure through 8VSB conversion, and VOD subscription fees and home shopping transmission fees have a significant impact on operating profit. Subscribers, as they switched over to 8VSB, have become able to view channels of various genres with clear picture quality for a same subscription fee, and the program providers could offer programs to more customers. The government 's deregulation policy due to the changes in broadcasting environment led to the facilitation of digital conversion of Pay-TV and improvement of viewers welfare. Keyword : Cable TV, 8VSB, Digital Transition, Subscriber Retention, Consumer Welfare a) IT (Seoul National University of Science and Technology, Graduate school of Public Policy and Information Technology) Corresponding Author : (Lee YeongJu) E-mail: roselee@seoultech.ac.kr Tel: +82-02-970-6869 ORCID: https://orcid.org/0000-0003-2642-9836 Manuscript received March 3, 2018; Revised August 21, 2018; Accepted October 24, 2018. Copyright 2016 Korean Institute of Broadcast and Media Engineers. All rights reserved. This is an Open-Access article distributed under the terms of the Creative Commons BY-NC-ND (http://creativecommons.org/licenses/by-nc-nd/3.0) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited and not altered.
1 : TV 8VSB (Kim Jee-Hoon et al.: A Study on the Impact of Cable TV 8VSB Conversion on Subscriber Retention and Consumer Welfare). HD. IPTV OTT. 2017 IPTV ( ) 1,650 TV 1,390 [1]. IPTV.. IPTV.. 3 [4].. 8VSB(8-level vestigial sideband) 8VSB. 8VSB,, [2]., 8VSB 2015 155, 2016 336 2017 6 405 8916 TV 13.2% [3]. 8VSB 8VSB. 8VSB [4]., [5]. 8VSB, [7]. 8VSB 3 TV TV, TV. 8VSB TV. 1. 8VSB. 8VSB 8 (VSB). 8VSB TV 6MHz 19.39 Mbps [8]. ATSC 8VSB AWGN(Additive White Gaussian Noise), PAR(Peak to Average Power Ratio). TV DTV
(JBE Vol. 23, No. 6, November 2018) [9]. TV 5.75MHz 1,002 MHz [11], 5.75MHz 54MHz. 8VSB 150. 2. 8VSB TV 2008 IPTV. IPTV 3 TV. IPTV SO [11],. TV DMC,,, [13]. B2B. 8VSB.,. [7]. 8VSB.., 8VSB [4]. 8VSB IPTV. 8VSB SO [4]., 8VSB. 8VSB, TV. HD, PP HD 1. 8VSB SO Fig. 1. Frequency usage of Cable SO after introduction of 8VSB
1 : TV 8VSB (Kim Jee-Hoon et al.: A Study on the Impact of Cable TV 8VSB Conversion on Subscriber Retention and Consumer Welfare). 8VSB [6].,. 8VSB TV [2][10].,, TV [14],.. 8VSB 8VSB. 8VSB,, MSP PP PP. 8VSB. [15]. 1.. 8VSB, 8VSB.. SO IPTV,,. 1 : 8VSB? 1-1., 8VSB? 1-2. ( ) /8VSB? 8VSB SO. SO SO. 8VSB. 8VSB SO.. 2 : 8VSB 8VSB? 8VSB. 8VSB. 8VSB.
(JBE Vol. 23, No. 6, November 2018) 1. Table 1. Operational definition of major variables Details Broadcasting subscriber Scale of Subscriber Market share Operational definition The number of broadcasting subscribers was based on the number of TV sets equipped with receiving facilities to receive general cable broadcasting. The number of subscribers is divided into analog, digital, 8VSB subscriber. Scale of subscriber is less than 100,000, between 100,000 and 200,000, and more than 200,000. Percentage of Cable SO subscribers among the pay TV subscribers in the area. The area where multiple SOs compete is measured by adding the number of subscribers of two SOs. 8VSB subscribers conversion rate The proportion of 2015 analog subscribers converted to 8VSB subscribers in 2017 Total Revenues Operating profit Number of channels (ANALOG, 8VSB) Service fee (ANALOG, 8VSB) Total revenue is the sum of broadcasting license revenue, VOD revenue, advertising revenue, home shopping transmission fee revenue, and telecommunication business revenue Operating profit is the profit generated by the company's business activities. In addition to operating profits, we also compared operating profit per subscriber as an indicator of efficiency. The number of channels is presented as the number of analog channels before introduction of 8VSB and the number of 8VSB channels after introduction. The rates are presented as 8VSB fee after introduction of 8VSB and analog fee before introduction. 8VSB. 3 : 8VSB? 2. < 1>. TV IPTV.. 1. 8VSB TV 1.1 /8VSB 2015, 2016, 2017 3,, 8VSB. 2015 2.,, 8VSB Table 2. Changes in Analog, Digital, and 8VSB Subscribers in Cable Broadcasting by Region (Unit: Terminal) YEAR 2015 2016 2017 Subscriber Type N Minimum Maximum Average S.D. ANALOG 91 6801 363504 78812.75 65615.82 DIGITAL 91 0 233701 81403.51 51963.45 Broadcast ALL 91 33959 421438 160216.25 92279.69 ANALOG 90 0 138112 38710.14 38016.957 8VSB 90 0 344877 36579.16 58504.103 DIGITAL 90 6671 240229 85923.10 55028.95 Broadcast ALL 90 45338 428226 161212.40 91199.78 ANALOG 90 0 128997 32536.04 34648.55 8VSB 90 0 353107 40631.16 60222.75 DIGITAL 90 5150 243729 86577.53 56161.26 Broadcast ALL 90 44990 426844 162100.81 91342.82
1 : TV 8VSB (Kim Jee-Hoon et al.: A Study on the Impact of Cable TV 8VSB Conversion on Subscriber Retention and Consumer Welfare) 78,812. 8VSB 2016 38,710 2017 6 32,536. 2015. 2015 81,403 2017 86,577. 8VSB 2016 36,579 2017 40,631. 8VSB 73,167, 2015. 2015 160,216 2017 162,100 2. SO, 8VSB,. 8VSB 20 SO 67,570, 8VSB 10 SO 67.95% SO. 10 ~20 SO 8VSB 58.33%, 20 SO 42.86%. SO 8VSB. 20 SO 141,872 2015 81,404 2017 85,626. 1.2. SO SO. 1.2.1 SO 2015 SO 23 63 SO 3. Table 3. Change in number of cable broadcasting subscribers by subscriber size (Unit: Terminal) Subscribers ' scale Less than 100,000 100,000~ 200,000 N 2015 2017 ANALOG DIGITAL ANALOG 8VSB DIGITAL Conversion rate 27 30309.22 39878.56 11545.15 20596.27 39958.59 67.95% 40 64262.28 79819.25 22930.85 37490.03 82703.63 58.33% More than 200,000 24 157630.00 130759.50 71284.83 67570.83 141872.96 42.86% Total 91 78812.75 81403.51 32536.04 40631.16 85626.13 51.55% F 58.456** 33.542** 39.997** 4.172* 37.503** p.000.00.00.019.00 *p<.05, **p<.01 4. SO /8VSB Table 4. Analog, 8VSB, and Digital Subscribers according to competition between SOs by region (Unit: Terminal) Monopoly presence N 2015 2017 ANALOG DIGITAL ANALOG 8VSB DIGITAL Conversion rate Competition 23 39667.83 49613.04 17735.0 22300.5 51527.7 56.21% Monopoly 68 92576.88 93531.63 37617.0 46923.7 98609.5 50.68% t -3.527* -3.781* -2.440* -1.710-3.709* p.001.001.017.091.000 *p<.05, **p<.01
(JBE Vol. 23, No. 6, November 2018). T,. SO SO 2. 2015 39,667 92,576, 49,613, 93,531. 2017 8VSB 56.21%, 50.68%.. 1.2.2 SO SO 55%. 50, 50~60, 60. 2015 2017 8VSB. 2015 SO 50~60% SO, 60%. 8VSB 60%, 8VSB 64.75%. 50% 55.47%, 50~60% 31.49%. 2. SO 8VSB SO 8VSB 49%. 0 SO 9 SO HCN, HCN, HCN, HCN, HCN, HCN, HCN, HCN HCN. SO (2.92), (2.47) 1,, TV,,,,,,, 10. 6. SO 8VSB Table 6. Cable SO's 8VSB Subscribers Conversion Rate 8VSB Conversion rate N Minimum Maximum Average Standard Deviation 92.000 2.92.4903.5469, 10 64% 20 32%. 5. SO Table 5. Changes in the number of subscribers according to the level of market share within SO's domain (Unit: Terminal) Market share N 2015 2017 ANALOG DIGITAL ANALOG 8VSB DIGITAL Conversion rate Less than 50 29 65083.52 90970.14 29976.59 36106.17 94626.48 55.47 50~60 31 74780.26 92943.13 40077.77 23552.19 98983.42 31.49 More than 60 30 96357.20 62619.37 27978.72 62395.86 67991.69 64.75 ALL 90 78848.07 82199.47 32843.99 40299.74 87465.31 51.10 F 1.777 3.415* 1.058 3.365* 2.768 p.175.037.352.039.068 *p<.05, **p<.01
1 : TV 8VSB (Kim Jee-Hoon et al.: A Study on the Impact of Cable TV 8VSB Conversion on Subscriber Retention and Consumer Welfare) 7. TV 8VSB Table 7. Difference of 8VSB subscribers conversion rate by Cable SO subscriber size SO TYPE N M F p Less than 100K 27.6435 100K~200K 40.4958 More than 200K 24.3292 2.147.123 ALL 91.4957 SO. 60% 8. SO 8VSB Table 8. Difference in 8VSB subscribers conversion rate according to SO market share Item SO TYPE N M F p Less than 50 29.5787 Market 50~60 31.3191 share More than 60 30.5836 2.584.081 ALL 90.4909 50%.57 50~60%.. SO 8VSB SO..49 0.5 0.5. 8VSB 0.5,,, (β=.963). 8VSB 0.5 (β=.312), (β=.268), (β=.266). SO 0.5 9. SO (2016 ) Table 9. Factors Affecting Cable SO's Total Revenue (2016) Conversion rate less than 0.5 / Total sales Conversion rate over 0.5 / Total sales Item Standardiza Standardiza t Probability tion factor tion factor t Probability Constant 1.259.215 1.111.275 Broadcasting fee.107 3.872**.000.266 10.190**.000 VOD subscription fee.041 1.776.083.123 6.734**.000 Ad sales.031 1.959.056.083 4.363**.000 Home shopping transmission fee.089 3.692**.001.268 12.599**.000 Telecommunications business sales.963 80.457**.000.312 20.321**.000 F 1489.03 5467.04 Modified R squared.993.999 10. SO Table 10. Factors Affecting Cable SO's Operating Profit Conversion rate less than 0.5 / OP Conversion rate over 0.5 / OP Item Standardiza Standardiza t Probability tion factor tion factor t Probability Constant -.871.389-1.990.056 Broadcastinge fee.184.557.580 -.102 -.366.717 VOD subscription fee -.266 -.966.339.598 3.073**.004 Ad sales.223 1.182.243 -.027 -.134.894 Home shopping transmission fee.245.854.398.593 2.627**.013 Telecommunications business sales.124.871.388 -.113 -.689.496 F 1.719 42.265** Modified R squared.150.851
(JBE Vol. 23, No. 6, November 2018). 8VSB 0.5 VOD (β =.598) (β=.593). 3. 8VSB TV 8VSB. SO,. 72.10 2016 71.02 8VSB 80. 8VSB 0.5 8VSB 92.95 0.5 72.58. MSO 8VSB MSO CMB, 130 8VSB. 12 8VSB. MSO 10 SO 12 8VSB. 8VSB / 19.7% / 16.9%, 14.1%, / 12.7%,, 1.4%. 8VSB.. 8VSB, [14]. 11. 8VSB Table 11. Difference between the number of analog channels and the number of 8VSB channels 2015 Number of analog channels 2016 Number of 8VSB channels Conversion rate Less than 0.5 More than 0.5 Less than 0.5 More than 0.5 Number of analog channels 69.25 76.00 72.58 92.95 t -4.832** -5.415** p.000.000 12. 8VSB Table 12. Additional channels and channel genre added to 8VSB Item Culture Leisure/ Sports Education / Information news / Eco Documentary /Drama Number of channels 10 14 4 2 9 7 Kids / Cartoon Channel ratio 14.1% 19.7% 5.6% 2.8% 12.7% 9.9% Item Entertainment /Game Music / Movie Satellite Religion Public Local Number of channels 12 3 7 1 1 1 Channel ratio 16.9% 4.2% 9.9% 1.4% 1.4% 1.4%
1 : TV 8VSB (Kim Jee-Hoon et al.: A Study on the Impact of Cable TV 8VSB Conversion on Subscriber Retention and Consumer Welfare). 2 400 8VSB [3]. 8VSB TV., 8VSB SO, SO SO 8VSB. 8VSB 60%. IPTV 8VSB. 8VSB 8VSB 0.5,,. 8VSB 0.5. SO, 8VSB 0.5 VOD. 8VSB 8VSB TV, 8VSB VOD. 8VSB 0.5 SO 0.5 SO 8VSB 20. 8VSB SO. 8VSB PP. 8VSB.. 8VSB. EPG.. TV 8VSB., 8VSB 50 SD HD 155 [16]. 8VSB. 8VSB OTT VOD IPTV. [17] 8VSB VOD.,., 8VSB TV. [18]
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1 : TV 8VSB (Kim Jee-Hoon et al.: A Study on the Impact of Cable TV 8VSB Conversion on Subscriber Retention and Consumer Welfare) - 2012 : - 2018 : IT - 2006 ~ : CMB MSO - ORCID : https://orcid.org/0000-0002-1420-0746 - :, TV, - 1991 : - 1998 : - 2005 : - 2007 ~ 2008 : - 2009 ~ : IT - ORCID : http://orcid.org/0000-0003-2642-9836 - :,,, IT