Enjoying IPTV in Rural Gangwon Province!

I did a post earlier on the arrival of fiber to the home (FTTH) service at our place out in Gangwon Province.  Yesterday, we took advantage of the fiber connection, by subscribing to IPTV.  This involved cancellation of our existing Skylife television service, and a short visit from a KT technician, who ran cable from the Qook modem to the set top box above our main television.

The IPTV service, for whatever reason, seems to provide better picture quality than our Skylife service did, and it has a host of new features, including the ability to search through and view old television programs broadcast after 2007.  Some of its features provide realistic glimpses of the future "smart TV," and they are all very easy to use.

According to the Joongang Daily, Korea is now the fourth largest IPTV using country in the world, after France, the U.S. and China.  As Korean consumers get used to the various features and applications that come with Google and other so-called "smart television," I expect it will rather quickly become a mainstream medium here.

Google TV's Prospects in Korea

The New York Times is reporting that, despite setbacks, Sony is "optimistic about Google TV."  It could well be that Korea, with its world-leading digital networks and encouraging uptake of IPTV, as mentioned in my prior post, might be a market in which Google TV does very well.

Sony acknowledges that reviews of its internet-enabled Google TV have been mixed and Google itself has asked other television makers to delay new models until the software could be refined.  The Google TVs, which run on Intel’s Atom chips, are close to full-fledged computers. They let users search for keywords to find shows and see when and where it is being broadcast, as well as viewing links to Web sites about the show.

It appears that Toshiba, LG Electronics and Sharp have put off plans to demonstrate Google TVs at the consumer electronics show next month in Las Vegas.   However, Samsung still plans to show off a forthcoming Google TV model.  And why not?  Although the new, interactive, video-on demand and other services may take some getting used to, they undoubtedly represent a big part of the future market, especially with the digital network infrastructure available here on the southern half of the Korean peninsula!

IPTV Subscribers in Korea Top 3 Million

Internet protocol television (IPTV) has attracted more than three million subscribers within its first two years of operation, according to industry reports.  That figure represents 6 percent of the nearly 50 million subscribers in the local television market.   A KT official commented that "The number of available channels on Qook TV lags behind other cable TV services, but...we reached 3 million subscribers thanks to two-way services, such as video-on demand, and other features."

Multiple Screens: Digital Convergence Gathers Strength in Korea

Several articles in the newspapers this morning offer concrete evidence that the convergence of digital media in South Korea is strengthening and accelerating.   According to The Korea Times, both KT and SK Broadband are doubling their investment in IPTV this year from last year.  They also aim to double the number of IPTV subscribers this year, over the number in 2009.

Not surprisingly, The Korea Times report notes that IPTV is driving broadband usage and demand, particularly when it is bundled together with fixed line and mobile services.   In fact, SK Broadband in partnership with SK Telecom will promote a "three screen (TV, PC and Mobile) package to smartphone and IPTV users.  This reinforces a point made in my last post.  With convergence people will sometimes use a handset, sometimes a tablet, and sometimes a desktop PC, but increasingly they want the same content available at the touch of a finger on all the devices.

Three screens by no means represents the limit, since another new consumer trend is that people are putting the new flat screen television sets in more rooms of the house than just the family room or entertainment room, at least in Western countries.  

New York Times: What Convergence? TVs Hesitant March to the Net

An article in today's New York Times just illustrates that the United States is on another planet than Korea when it comes to media convergence and offering of television services via the internet.  Three major providers here are now agressively marketing IPTV services, bundled with attractive voice and data services in so-called "triple-play" packages.  The government, through the newly-established Korea Communications Commission, is trying to remove obstacles to "convergence," as if to say "bring it on!"  Meanwhile, in the United States, many are suggesting that it will be a slow transition to the inevitable.  The debate discussed in the New York Times never took place here, nor will it, and we are moving on to other things.  I'm not suggesting that it will be a completely easy road ahead, but as a consumer, I'm happy to live in the Korean media market versus that of the U.S., thank you.

KT Launches IPTV Test Service

One of the most interesting aspects of the broadband digital convergence taking place in South Korea these days is the introduction of Internet Protocol Television (IPTV) service.   On Thursday, as reported in the Digital Chosunilbo, Korea Telecom started a test service of the IPTV, including realtime broadcasting of KBS1 and EBS.  Although the test is beginning with service for only 200 members, KT aims to secure at least 300,000 members by the end of this year, 1.1 million by next year and 3 million by 2011. 

Will Convergence Lead to Free Voice Telephony?

In South Korea, internet telephony is poised for explosive growth over the next five years. As anyone who has experienced the convenience and economy of a service like Skype will already know, consumers are likely to go for internet telephony in droves. An article in today's Korea Times points out that the Korean government is expected to adopt number portability as early as next month. That policy will allow telephone subscribers to switch to cheaper VoIP services without changing their numbers and offer new possibilities for companies like Hanarotelecom, which has been struggling to strengthen its share in the saturated fixed-line market. Although Internet protocol television (IPTV), has been getting more attention in the Korean media, some analysts believe that VoIP offerings could make more of a difference in the competition between bundled services. The Korea Times article notes that "The local VoIP market was valued at about 255.2 billion won (about $251 million) last year, according to an estimate by IDC Korea, but forecasted to show an annual growth of about 53 percent for the next five years."

With the introduction of VoIP and IPTV services in Korea, the major providers are planning to bundle services and offer steep discounts. Some are expected to offer free calls between subscribers to their VoIP service. However, the article reports that KT is not planning to do so, "... fearing a massive drop in average revenue per user (ARPU)." In fact, market pressures may force KT to offer free calling sooner rather than later. South Korea seems certain to be one of the first markets in the world to test the viability of something many analysts have predicted: free voice telephony.