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Technology Stocks : C-Cube
CUBE 37.23-0.3%Nov 28 9:30 AM EST

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To: John Rieman who wrote (43830)8/11/1999 4:23:00 PM
From: BillyG  Read Replies (1) of 50808
 
Free satellite receivers for Korean satelite broadcasting channel................

Korea joins satellite television race in Asia; Arirang TV launches free-to-air, 24-hour English-language service today

Korea finally jumped on the satellite television bandwagon today as Arirang TV, the nation's only English-language cable channel, launched a 24-hour satellite broadcasting service.

"Korea has been swarmed by more than 300 different foreign television signals. Now we've finally started beaming our signals abroad via satellite," said Hwang Kyu-hwan, president of the Korean International Broadcasting Foundation (KIBF), which runs Arirang TV, at a news conference Tuesday.

After a two-month trial operation, the foundation launched services to 50 different countries in Asia and Oceania through China's AsiaSat 3S satellite, which was leased for five years for $380,000. The programming will run in English, with subtitles provided in Chinese and English for Korean dramas.

Today's launching ceremony at the headquarters of the foundation in Yangjae-dong, southern Seoul, will be attended by about 200 dignitaries including Prime Minister Kim Jong-pil and Culture and Tourism Minister Park Jie-won and foreign diplomats.

Because the programming is run by a government-related agency, there was worry that the quality of programming would be laden with propaganda. But Hwang emphatically stressed that this would not be the case.

"The moment we air propaganda, viewers will switch the channel. In order to make viewers abroad watch our channel, the programming has to be interesting," he said.

The programming consists of 20 percent news and current affairs, 20 percent general interest programs such as documentaries, and 60 percent entertainment, including dramas, movies, variety shows and sports.

The foundation will also rely heavily on outsourcing for its programs. About 80 percent of the shows will be provided by major television networks and cable channels, while the remaining 20 percent, consisting of news programming exclusively produced for satellite service, will be produced by the Arirang channel.

"Our marketing point is that we provide selected shows from three of Korea's major television networks and dozens of cable channels," said Hwang.

The first shows to be aired include a pop music festival in Kangwon Province, Korea's best-known tourist attraction, the award-winning documentary "Snipe Bird's Adventure of 10,000 km," and Korea's famous musical "The Last Empress." Most of the service's profits will depend on a strategy of building up advertising revenue, Hwang said.

"To get a lot of advertisement from Korean companies, we need to lure a large audience among other things." Owing to aggressive pre-launching marketing activities, including distributing free-of-charge satellite receivers that cost about 300,000 won per unit, KIBF has won agreements with local cable operators in ten countries, which will air the shows to about 2 million households.

Japan is responsible for about 1.2 million households, which is followed by 600,000 in the Philippines, 40,000 in Indonesia and 20,000 in New Zealand.

Taking account the number of subscribers watching Korean broadcasts through their own receivers all throughout Asia, the foundation estimates that it will reach about 3 million households.

"The result is far beyond our early expectations. I hope to expand the number to 12 million by the end of this year," Hwang said.

Hwang said that the foundation's marketing is currently focused on entering into the three largest markets in Asia - China, India and Indonesia.

"Our greatest goal is to enter China, one of the hardest markets to break into because of a government ban on foreign-generated broadcasts. India and Indonesia are potentially important markets for Korean companies as trade with the countries is increasing," Hwang said.

KIBF will try to expand its broadcasting area to North America and Europe in the near future. But the sizable cost of the two extra satellites needed for such a project is limiting its efforts.

The launch of the satellite channel comes in the wake of the launching of North Korea's KCTV through Thaicom in Thailand on July 2.

"By international standards, we confirmed our superiority over North Korea's KCTV. First of all North Korean broadcasts are available only in Korean and filled with political propaganda," said Hwang.

Updated: 08/12/1999
by Byun Eun-mi Staff reporter
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