Intensifying Competition Between Broadcast and OTT … Marked Decline in TV Advertising Market

Competition in the Broadcasting Market

The broadcasting market is experiencing intensified competition between broadcasting service providers and online video streaming services (OTTs). The influence of OTTs has grown, leading to a decline in domestic content production demand and a significant drop in the broadcasting advertising market.

Key Points

• Paid Broadcasting Market: Subscriber and revenue growth have slowed due to market saturation and OTT competition.
• Broadcast Channel Trading Market: Revenue increased by 9.3% in 2023, but viewing time continues to decline.
• Broadcast Video Content Trading Market: Domestic content production demand has decreased, while global OTTs continue to increase their demand for Korean content.
• Broadcast Advertising Market: The market saw an 18.5% decline in 2023, with digital advertising continuing to grow.

The Korea Communications Commission (KCC) has released these findings as part of its annual evaluation to ensure a fair and competitive media environment.

The Korea Communications Commission (KCC, Chair Jin-sook Lee) and the Korea Information Society Development Institute (KISDI, Acting President Jung-eon Kim) announced on the 26th the findings of the “2024 Broadcast Market Competition Evaluation”, reporting them to the National Assembly. The evaluation draws on financial and operational data from broadcast operators in 2023, relevant industry reports, and a 2024 survey of users, producers, and advertisers.

Encompassing four domains—△Pay-TV Market △Broadcast Channel Transactions Market △Broadcasting Video Content Transactions Market △TV Advertising Market—this annual assessment (mandated by the Broadcasting Act) indicates that competition between traditional broadcast operators and online video services (OTTs) is intensifying. Notably, the domestic demand for broadcast video content production has decreased, and the TV advertising market has registered a marked decline.

Note: Approximate USD conversions use an exchange rate of ~1,300 KRW per USD.

Pay-TV Market: Stagnation Amid Oligopoly by Top IPTV Operators

In the Pay-TV Market, comprising Internet Protocol TV (IPTV) and cable TV (SO) providers, market growth has slowed considerably as they vie to attract subscribers.

2023 Subscriber Figures: 36.29 million (based on set-top box connections)

Broadcast Business Revenue: KRW 7.2328 trillion (approx. USD 5.56 billion)

These figures represent year-over-year increases of only 0.01% (subscribers) and 0.4% (revenue).

According to the KCC and KISDI, market saturation and mounting competitive pressure from OTT services are the principal causes of this slowdown. Despite KT, LG Uplus, and SK Broadband (the top three IPTV operators) reinforcing their oligopolistic position—together accounting for 86.8% of total subscribers and 91.4% of revenue—there is no evidence of any significant adverse impact on consumer welfare.

Reflecting reduced differentiation among IPTV, cable, and satellite platforms (and increased substitutability), the KCC evaluated all pay-TV services as a single, unified market, rather than dividing them by regional cable service areas.

Broadcast Channel Transactions: Retransmission Fee Gains, Yet Declining Overall Viewership

The Broadcast Channel Transactions Market concerns the negotiation of carriage rights and fees between pay-TV providers and channel operators. In 2023, total revenue from channel provision reached KRW 1.494 trillion (approx. USD 1.15 billion), marking a 9.3% increase from the previous year. This surge stems from an 8.4% growth in program provider (PP) revenues and an 11.3% rise in retransmission fees collected by terrestrial broadcasters.

Nonetheless, total TV viewing time has been on the decline since peaking in 2020. In 2023, individuals spent an average of 121 minutes per day watching TV—a 24.8% drop over the last three years. Because terrestrial channels also experienced falling viewership, KCC attributes the drop to increased usage of OTT and other new media, rather than a shift back to traditional terrestrial broadcasts.

The study highlights that both pay-TV operators (demand side) and channel providers (supply side) may face changing bargaining power and potential disputes, underscoring the need for vigilant monitoring. Additionally, the evaluation merged what had been the separate “retransmission market for the three terrestrial broadcasters” and “pay-TV channel transaction market” into a single broadcast channel transactions market, reflecting the narrower viewing gap between channels and shifting viewer perceptions.

Broadcasting Video Content Transactions: Reduced Domestic Demand as Foreign OTT Investment Rises

In the Broadcasting Video Content Transactions Market, which involves the purchase of broadcast or transmission rights by terrestrial broadcasters, PP operators, and OTT services from production companies, domestic content production demand is declining.

2023 Direct Production Expenditure by Broadcasters: KRW 2.9034 trillion (approx. USD 2.23 billion), up 0.9% year-on-year

Outsourced Production Expenditure: KRW 1.0104 trillion (approx. USD 0.78 billion), up 4.5% year-on-year

Despite modest budgetary increases, outsourced production hours plummeted by 15.8% compared to the previous year, and the number of dramas supplied by domestic broadcasters and OTT services in 2023 dropped 17.6% year-on-year to 112. In contrast, global OTT platforms increased their investment in Korean content (from 21 projects in 2022 to 30 in 2023), showing sustained overseas demand.

The KCC notes that while foreign OTTs are stepping up their production of Korean titles, domestic OTTs and broadcasters have pulled back due to profitability concerns—namely, shrinking TV advertising revenues and higher production costs. This dynamic raises worries about excessive reliance on specific OTT platforms or production houses and underscores the need for ongoing competition monitoring and improved data collection.

By reflecting real-world competition for content acquisition between broadcasters and OTT services, this section was renamed from “Broadcast Program Outsourcing Market” to “Broadcasting Video Content Transactions Market.”

Yearly Original Drama Production and Supply Count (Unit: Number)

TV Advertising Market: 18.5% Decline, Rapid Shift Toward Digital

The TV Advertising Market, in which terrestrial and pay-TV channels sell real-time ad slots to advertisers, fell by 18.5% from the previous year to KRW 2.3574 trillion (approx. USD 1.81 billion), a sharp downturn. Although the total domestic advertising market dipped by only 0.6% to KRW 13.8017 trillion (approx. USD 10.62 billion), TV ads’ share of that market decreased to 17.6%, marking the third consecutive year of decline.

Meanwhile, digital advertising has maintained its upward trajectory: in 2023, it accounted for 60.7% of total ad spending, up 2.3 percentage points from the prior year. A 2024 survey found that if advertisers and agencies could not place ads on traditional TV, 60.9% would choose OTT advertising as their next-best option. This shift in viewing habits, coupled with advanced digital ad technologies, suggests further erosion in TV advertising’s share of the overall market.

The graph titled "Market Share Trends by Service Type (Subscriber-Based)" illustrates the changes in market share percentages for three service types—SO (Cable), IPTV, and Satellite—from 2013 to 2023.

SO (Cable): The market share steadily declined from 58% in 2013 to 34.4% in 2023.

IPTV: The market share showed continuous growth, starting at 29.9% in 2013 and reaching 57.8% in 2023, overtaking SO around 2016.

Satellite: The market share gradually decreased from 12.1% in 2013 to 7.8% in 2023.

This trend reflects the growing dominance of IPTV services in South Korea, driven by technological advancements and consumer preferences for modern streaming platforms.

Conclusion and Future Directions

The Korea Communications Commission concluded that intensified competition between broadcasters and OTT platforms has squeezed the TV advertising market and dampened domestic video content production. The KCC emphasized the importance of active monitoring to prevent any single entity from dominating the domestic media ecosystem, thereby preserving a balanced competitive environment.

The complete “2024 Broadcast Market Competition Evaluation” report and associated data or graphical materials will be published on the official KCC website (www.kcc.go.kr) and the Broadcasting Statistics Portal (mediastat.or.kr).

Changes in TV Content Production Costs by Companies

Notes:

1. PP is cable TV content Studio
2. Outsourced production costs include net outsourced production expenses and special affiliate outsourcing costs.
3. Excludes data/home shopping/radio/VOD PP.
4. As of '22, VOD PP was included in purchase costs; from '23, VOD PP is excluded.
5. Based on direct production costs.

Source: Broadcasting Industry Survey, Various Years

Changes in Broadcasting Program Production Costs by Broadcasters (Converted to USD)

Notes:

Conversion rate used: 1 KRW=0.00075 USD1 \text{ KRW} = 0.00075 \text{ USD}1 KRW=0.00075 USD.

Outsourced production costs include net outsourced production expenses and special affiliate outsourcing costs.

Excludes data/home shopping/radio/VOD PP.

As of '22, VOD PP was included in purchase costs; from '23, VOD PP is excluded.

Based on direct production costs.

Source: Broadcasting Industry Survey, Various Years

Changes in TV Program Production Costs by Broadcasters

Notes:

• Conversion rate used: 1 KRW=0.00075 USD1 \text{ KRW} = 0.00075 \text{ USD}1 KRW=0.00075 USD.
• Outsourced production costs include net outsourced production expenses and special affiliate outsourcing costs.
• Excludes data/home shopping/radio/VOD PP.
• As of '22, VOD PP was included in purchase costs; from '23, VOD PP is excluded.
• Based on direct production costs.
  
  

[기사] 방송·OTT 간 경쟁 심화…방송광고 시장 큰 폭 하락세

방송통신위원회(위원장 이진숙)와 정보통신정책연구원(원장 직무대행 김정언)이 26일 ‘2024년도 방송시장 경쟁상황 평가’ 결과를 발표하고 국회에 보고한다고 밝혔다. 이번 평가는 2023년도 방송사업자 재산상황공표집, 회계보고서, 방송산업 실태조사 보고서 등 주요 자료와 함께 2024년 실시된 이용자‧제작사‧광고주 등의 설문조사를 종합하여 진행됐다.

평가 대상은 △유료방송시장 △방송채널거래시장 △방송영상콘텐츠 거래시장 △방송광고시장 총 네 부문으로, 방송법에 따라 매년 추진되는 이번 평가는 방송시장 전반에서 **온라인동영상서비스(OTT)**가 영향력을 확대함에 따라 방송사와 OTT 간 경쟁이 한층 강화되고 있음을 확인했다. 특히 국내 방송영상콘텐츠 제작 수요가 줄어들고, 방송광고 시장도 큰 폭으로 감소한 점이 두드러졌다.

유료방송시장: 성장 정체 속 IPTV 3사 과점화

‘유료방송시장’ 부문에서는 인터넷멀티미디어방송(IPTV), 종합유선방송(SO) 등의 사업자가 유료방송 서비스로 가입자를 유치하는 과정에서 시장 성장이 크게 둔화된 것으로 나타났다.

2023년 가입자 수: 3,629만 명(단자 수 기준)

방송사업 매출액: 7조 2,328억 원

전년 대비 증가율이 각각 **0.01%**와 **0.4%**에 그쳤다.

방통위와 정보통신정책연구원은 시장 포화와 함께 OTT 경쟁 압력이 유료방송 성장 정체의 주된 원인이라고 분석했다. 한편, KT·LG유플러스·SK브로드밴드(IPTV 3사) 계열사가 전체 가입자의 86.8%, 매출의 91.4%를 차지하며 과점화 경향을 이어가고 있으나, 이로 인한 이용자 후생의 유의미한 변화는 발견되지 않았다.

이번 평가에서는 기존에 종합유선방송사업자(SO) 구역별로 시장을 나누던 방식에서 벗어나, 유료방송 전체를 하나의 통합 시장으로 간주했다. 이는 IPTV와 케이블TV, 위성방송 등 서비스 간 차별성이 감소하고 공급·수요 대체성이 높아졌음을 반영한 조치다.

방송채널거래시장: 재송신료 수입 증가에도 시청시간 전반 감소

방송채널거래시장(유료방송 사업자와 방송채널 사업자 간 전송권·대가 협상)에서는 2023년 방송채널제공 매출액 1조 4,940억 원을 기록해 전년 대비 9.3% 증가했다. 이는 방송채널사용사업자(PP)의 채널제공 매출이 전년 대비 8.4% 늘어난 점과, 지상파방송 재송신료가 11.3% 증가한 결과라는 분석이다.

그러나 전체 TV 시청시간이 2020년 정점을 찍은 뒤 계속 줄고 있으며, 2023년 개인 하루 평균 TV 시청시간은 121분으로 최근 3년간 24.8% 줄었다. 이는 지상파 채널로의 이동이 아닌, OTT 등 신유형 미디어로의 이용 전환에 따른 전반적 방송채널 시청시간 감소로 추정된다.

시장 변화로 유료방송 사업자(수요 측)와 방송채널(공급 측) 모두 협상력 및 분쟁 가능성이 달라질 수 있어, **지속적인 시장 점검(모니터링)**이 필요하다는 결론이 제시됐다. 아울러 평가에서는 기존 ‘지상파 3사 재전송권 거래시장’과 ‘유료방송 채널 거래시장’을 전체 방송채널거래시장으로 통합해 시청시간 격차 감소 추세를 반영했다.

방송영상콘텐츠 거래시장: 국내 제작수요 위축…해외 OTT는 증가세

지상파·PP·OTT 사업자(수요자)와 제작사(공급자)가 방송영상콘텐츠 방영권·전송권을 거래하는 ‘방송영상콘텐츠 거래시장’에서는 국내 제작수요가 전반적으로 위축된 것으로 파악됐다.

2023년 방송사업자 직접 제작비: 전년 대비 0.9% 증가(2조 9,034억 원)

외주제작비: 4.5% 증가(1조 104억 원)

하지만 외주 제작시간은 전년 대비 15.8% 줄었고, 방송사업자·국내 OTT의 2023년 드라마 공급 개수도 전년 대비 17.6% 감소(112개)해, 국내 제작수요가 축소되고 있음을 시사했다. 반면, 해외 OTT 사업자는 한국 작품 수가 늘어나(2022년 21개→2023년 30개) 한국 콘텐츠에 대한 해외 수요가 계속 증가하고 있는 것으로 보인다.

방통위는 방송광고시장 위축, 제작단가 상승 등으로 국내 OTT·방송사 측 제작 여력이 줄어든 반면, 해외 OTT는 한국 콘텐츠 투자 확대를 지속해 특정 사업자 영향력이 지나치게 커질 가능성이 있다고 분석했다. 이에 따라 미디어 생태계 전반에 대한 경쟁 상황 점검과 통계 확보 제도 개선이 필요하다는 의견을 내놓았다.

참고로 이번에는 기존 ‘방송프로그램 외주제작 시장’을 OTT 서비스까지 통합한 ‘방송영상콘텐츠 거래시장’으로 명칭을 변경해 방송사와 OTT 간 수급 경쟁 현실을 반영했다.

방송광고시장: 18.5% 급감…디지털 광고 중심 재편 가속

지상파·유료방송 채널이 실시간 TV 광고 시간을 광고주에게 판매하는 ‘방송광고시장’은 전년 대비 18.5% 감소한 2조 3,574억 원을 기록, 큰 폭의 하락세를 보였다. 2023년 국내 전체 광고시장은 13조 8,017억 원으로 전년 대비 0.6% 감소에 그쳤으나, 방송광고시장 비중은 17.6%로 낮아지며 3년 연속 축소됐다.

특히 디지털 광고 비중은 2023년 전체 광고의 60.7%로, 전년 대비 2.3%p 증가해 성장세가 이어졌다. 설문조사에서도 광고주·광고대행사가 방송광고를 대체할 플랫폼으로 가장 많이 **OTT 광고(60.9%)**를 꼽는 등, OTT 등 디지털 플랫폼으로 시청 행태가 이동하면서 방송광고의 경쟁력이 계속 약화될 전망이다.

결론 및 향후 과제

방통위는 “이번 평가 결과, 방송사업자와 OTT 사업자 간 경쟁 심화로 방송광고 시장이 위축되고, 국내 방송영상콘텐츠 제작수요 역시 감소하는 경향이 뚜렷하다”고 밝혔다. 또한 “국내 미디어 생태계에서 특정 사업자가 지배적 영향력을 행사하는 것을 방지하고, 건전한 경쟁 환경을 유지하기 위해 지속적 모니터링과 제도 개선이 필요하다”고 강조했다.

한편, ‘2024년도 방송시장 경쟁상황 평가’ 보고서와 주요 데이터, 그래픽 파일은 방송통신위원회 누리집(www.kcc.go.kr)과 방송통계포털(mediastat.or.kr)을 통해 공개될 예정이다.