Boosted by a raise in viewing rate and cost per rating, major cable multi-channel program providers (MPPs) such as On Media, Sky KBS and SBS Media Net are expected to gain a significant growth in their advertisement revenue this year.
According to Nielsen Media Research, an audience rating survey organization, cable TV advertisement market is estimated to reach some 280 billion won (approximately 237 million dollars) this year, an increase of 20% from last year.
The number of subscribers to cable TV exceeded 10 million households this year, raising its audience rate by 6.3% point in the first half of this year over that in the same period of 2001. In the same period, audience rate of terrestrial TV broadcasts dropped by 1.9% point.
On Media, the largest MPP in Korea, expects to post 70 billion won in ads revenue this year, up more than 50% from last year, attributing to a steady growth in ads sales at its movie channel, OCN, as well as new channels such as Qwiny. Cost per rating point of ads of On Media showed 443,000 won in August, much higher compared to that of three terrestrial TV broadcasters with 1.83 million won on an average.
Ads sales at KBS Sky is anticipated to hike by 150% from some 300 million won in June last year to 1.25 billion won in October this year. "Stabilized sales at sports and drama channels as well as substantial increase in the number of affiliate system operators largely helped us raise the ads revenue," said Keum Dong-su, CEO of KBS Sky.
Ads revenue at SBS Media Net this year is seen to grow by 30% from last year thanks to steady increase in viewing rate of its drama channel.