KOREA: Old, new media compete in World Cup broadcasting

Poll by Korean IT firm predicts large number of people will watch World Cup matches on their computer

Korea Times
Monday, May 29, 2006

By Kim Tae-gyu

Two types of media -- traditional terrestrial TV and emerging Web- or mobile-based broadcasting -- are in an uphill battle here in Korea to become the mainstream window for showing the World Cup games in June.

Thus far, alternative broadcastings have failed to pose any serious threat to the predominant terrestrial TV stations, which typically arrested people’s attention during the world’s biggest sports gala.

However, experts say things might be different this time around for some reason as amply demonstrated by the latest survey of a local system integrator.

According to an in-house poll by Ssangyong Information and Communications, up to 36.2 percent of 192 respondents said they would watch the World Cup games through PC-based video-on-demand services.

The second most-favored terminal was personal media player, typically called PMP, with 24.8 percent followed by digital mobile broadcasting (DMB) with 4.8 percent.

In other words, 65.8 percent said new media will be their No. 1 way to savor the World Cup while those who selected over-the-air TV and radio combined to reach a mere 8.3 percent.

The responses surprised some market observers, who attribute the results to the fact that most games of the German World Cup will be aired late at night or early morning here due to the time difference.

But Ssangyong appears to think that there are more significant and fundamental factors.

"Basically, the survey seems to reflect recent mega-trend toward the new media like the Internet or video-on-the-move services," a Ssangyong spokesman said.

"The upcoming World Cup may be a turning point where traditional media gives its lead to new broadcasting. It will be intriguing to see what will happen during the sports event," he added.

Mobile Broadcasting

In 2002 when the previous World Cup was co-hosted by South Korea and Japan, almost all football fans from across the world watched the showdown through regular TVs at home.

Back then, some tried to watch the competition on the Internet but such a move was literally negligent and mobile broadcastings had yet to debut.

During the following four years, many things have changed especially in Korea where trend-aware and tech-savvy consumers are building up the pantheon of every new technology imaginable.

"The war between old media and new ones had a kind of David and Goliath feel in the past. Four years ago, Goliath was too tall and powerful for David to take on," said Kim Kyung-mo, an analyst at Mirae Asset.

"However, now David has grown up enough to counter Goliath. It remains to be seen which will win. But now both are contenders," he added.

Indeed, Korea deployed go-anywhere TV, dubbed DMB, for the first time in history last year and the Internet became the inseparable part of folks’ daily lives in a more serious fashion over the past few years.

DMB enables people on the road to enjoy seamless video, CD-quality audio and data through in-automobile devices and handheld gadgets like cell phones.

End users have options between two versions of DMB -- fee-based satellite DMB and free terrestrial DMB. The former is powered by signals beamed from a satellite while the latter is based on over-the-air signals.

The exponential potential of DMB was shown during the World Baseball Classic in March, when Korea progressed to the final four of the competition after beating favored teams.

Since its deployment in last July, TU Media that takes charge of satellite DMB business has signed up about 1,500 customers every day on average through this February.

However, the daily subscription more than doubled to 3,000 in March thanks in large part to the baseball rivalry participated by 16 countries.

"Those who wanted to watch the baseball matches on a real-time basis at any time and at any place bought our satellite DMB-enabled phones in bulk," TU Media spokesman Heo Jae-young said.

"We hope the same phenomenon will take place during the World Cup -- football frenzy prompts people to our satellite DMB services," he added.

Toward that end, TU has put forth efforts to reduce shadow areas, where satellite DMB services cannot be available because signals from a satellite can be received naturally only on open-air sites, not subterranean districts.

TU installed gap fillers in all subway lines in Seoul and its vicinity. Plus, patrons of Pusan subway and the bullet train called the Korea Train Express (KTX) now can watch satellite DMB TVs.

KBS will also expand the coverage of terrestrial DMB from current Seoul and the surrounding Kyonggi Province to the whole country in the lead-up to the World Cup.

Internet and TV

Daum Communications, Korea’s second-largest Internet company, also looks to catapult the Internet to the main gateway to feel the fever of the football festival.

Earlier in February, Daum obtained exclusive rights to broadcast all the World Cup matches through the Internet and on mobile phones in Korea.

"We plan to provide highlighted Korean-language footage of the whole 64 games at our Web site. It will not live streaming but an edited one on demands," Daum official Kim Tae-ho said.

"Given most Koreans will watch World Cup games in day time instead of midnight, they would usually watch the competition through the Internet," he added.

Terrestrial TV broadcasters vow not to sit idle and see new media nudge past them during next month’s World Cup, which will kick off on June 9 to continue a month.

The biggest ammunition of the deep-pocketed players are top-end video quality based on the high-definition (HD) broadcasting as well as seasoned star commentators.

"Sports games like football is the perfect fit to show the real power of HD videos in comparison to standard-definition or analogue TV," said an official at MBC, the country’s one of major TV stations.

"We expect many Koreans would remain awake late in order to watch football matches real time. Then what would be their choice -- a small cell phone screen or large-sized TV monitor?" he asked.

Terrestrial TV networks also hope people accustomed to their famous commentators will watch World Cup matches on their programs.

Date Posted: 5/29/2006