So says this story in Yonhap...a year after the much hyped launch of the T-DMB-based mobile TV service in Korea, the brouhaha is giving way to mounting pessimism as the service providers are struggling through poor earnings and intensifying competition from satellite DMB (S-DMB) launched about half a year earlier.
Market watchers say the main reason for the industry’s poor performance is government red tape that limits their business, namely regulatory blocks and limited service coverage area allowed. Also, commercials, the sole revenue source for service operators, are required to be aired only at the end of each program. The story says that each operator earns an average of 20 million won ($21,500) to 30 million won a month from commercials, far below the break-even point of about 500 million won, considering their initial investment.
The world’s first T-DMB service was launched on Dec. 1 last year by three major broadcasters—MBC, KBS and SBS—along with three smaller firms. The story says that the number of T-DMB users stands at around 1.8 million and growth has remained in the doldrums in recent months.