Korea’s pay TV market sees slowdown as subscribers shift to new formats

[Photo by Yonhap]

The growth rate of paid TV subscriptions in South Korea, excluding terrestrial channels, has dropped to a historic low in the single-digit range, indicating that the local paid TV market has reached saturation, with subscribers increasingly migrating to new and competitive formats like video streaming platforms, commonly known as over-the-top (OTT) media services.

While the number of IPTV subscribers has shown an upward trend, cable TV (SO) and satellite TV subscriptions have experienced a noticeable decline, leading to a slowdown in overall market growth.

According to the Ministry of Science and ICT’s latest data, the number of paid TV subscribers in the second half of last year reached 36.24 million, up by 240,000 compared to the first half of the year, resulting in a modest growth rate of 0.67 percent. Notably, this is the first time the growth rate has fallen below 1 percent versus the previous half, signaling a shift in the market landscape.

This growth rate is only half of the increase witnessed in the second half of 2021, which saw 520,000 new subscribers.

By service operator, KT Corp. maintained its leading position with about 8.78 million subscribers, representing a commendable market share of 24.2 percent. Following closely behind is SK broadband Inc. (IPTV) with 6.42 million subscribers (17.7 percent market share), LG Uplus Corp. with 5.36 million subscribers (14.8 percent), LG HelloVision Corp. with 3.7 million subscribers (10.2 percent), KT SkyLife Co. with 2.95 million subscribers (8.2 percent), and SK broadband (SO) with 2.83 million subscribers (7.8 percent).

By media platform, the three major IPTV providers witnessed a growth in subscriber numbers, collectively adding 360,000 new subscribers and capturing a market share of 56.8 percent. In contrast, both cable TV (SO) and satellite TV experienced a decline, losing 95,000 and 24,000 subscribers respectively.

The rise in IPTV subscriptions can be attributed to the installation of multiple terminals in commercial locations such as hospitals, hotels, and shops.