this, South Korea saw decline in the penetration rate because of 2 reasons: High churn rate post free viewing period, South Korea plagued by international currency crisis in 1998
Israelis adopted to cable television inspite of high prices, vertically integrated system and absence of tiering option due to govt regulation and support.
New Order policies, structure, performance, conduct:
In South Korea, plan was announced to deregulate the cable television industry by allowing horizontal and vertical integration. Chaebols and foreign companies were allowed to hold up to 33% of the shares in cable companies. Adoption of a duopoly system of cable operators to enable narrowband cable companies to obtain licenses was suggested. Program networks were not be subject to licensing but to registration.
In Israel, new legislation was aimed at developing a content industry and generating competition among providers. New government's neo-liberal ideology help establish the legal framework for awarding licenses to digital satellite operators
The revised law imposed the structural separation of three entities: the owner of the infrastructure, the provider of the multichannel video service, and the provider of the broadband Internet service.
In South Korea, new order structure called for perfecting competition among several market players: cable television and Direct Broadcast Satellite (DBS), cable television and telecommunications, two broadband cable television operators, and numerous program networks.
In Israel, full facility-based competition at the infrastructure level was advocated.
In South Korea, increased penetration rates, authorized sale of tiers, narrowband companies obtaining licences for broadband cable television were few of the trends.
In Israel, trend showed decline in penetration level post 2000, when competition was launched. The reasons behind decline may be due to economic crisis and no price reduction due to limited competition.
Broadband Internet: Structure, conduct
Competition was intensified due to multiple players in South Korea. In Israel, cable companies were not allowed to provide internet access. Licensing in broadband market was Duopoly in nature.
Price wars waged due to competition in South Korea. Cable operators also initiated bundling services of broadband Internet service with free multichannel television service.
Price wars were not a dominant feature of the Israeli broadband market
Comparison between two Regions:
In both countries, media regulation has been influenced by the fear of trans-border broadcasts, and both countries assumed that establishing cable services requires sector specific legislation and launching the service requires licensing. In both countries, for example, cable operators were prohibited from broadcasting their own news programs and were forced to carry terrestrial channels that were subject to strict content regulation. In South Korea, separation of content and conduit assured continued government supervision of content through separate regulation, but in Israel, cable content was supervised directly, and the fully vertically integrated industry served as a useful tool for control.
Both countries adopted a policy designed to take advantage of economies of scale created by mergers
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