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JBE, vol. 23, no. 6, pp.824-835, November, 2018

DOI: https://doi.org/10.5909/JBE.2018.23.6.824

A Study on the Impact of Cable TV 8VSB Conversion on Subscriber Retention and Consumer Welfare

Kim Jee-Hoon and Yeong-Ju Lee

C.A E-mail: roselee@seoultech.ac.kr

Abstract:

In this study, the impact on the number of cable TV subscribers as well as the profit of cable TV has been examined, and the impact on enlarging the digital broadcast viewing rights of cable TV subscribers and viewers’ welfare has also been examined. We investigated the trends in the number of analog and 8VSB subscribers and revenue of cable TV operators by region and analyzed based on changes in the number of channels provided by each operator. The results show that analog subscribers and digital subscribers are delaying their departure through 8VSB conversion, and VOD subscription fees and home shopping transmission fees have a significant impact on operating profit. Subscribers, as they switched over to 8VSB, have become able to view channels of various genres with clear picture quality for a same subscription fee, and the program providers could offer programs to more customers. The government 's deregulation policy due to the changes in broadcasting environment led to the facilitation of digital conversion of Pay-TV and improvement of viewers’ welfare.



Keyword: Cable TV, 8VSB, Digital Transition, Subscriber Retention, Consumer Welfare

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