Despite A Year Delay, Korea's Satellite DMB Services Off To Strong Start

Despite A Year Delay, Korea's Satellite DMB Services Off To Strong Start
12:06PM 5/16/05 [ back to top ]

TU Media, owned thirty percent by Korea's leading mobile operator, SK Telecom, launched the world's first commercial mobile broadcasting service to cell phones on May 1st, more than a year later than expected.

After only two weeks, Korea's new satellite digital multimedia broadcasting service has gained over 20,000 subscribers.

The new service features 7 video channels and 20 audio broadcasts, and costs about US$13 a month. Only two DMB-enabled handsets are available right now, Samsung Electronics' SCH-B100 and Pantech's IBM-1000. LG Electronics is releasing a compatible phone today and Samsung is releasing another model later this month.

"While only cellular handsets are currently compatible, integration into the vehicle should follow shortly," ABI Research analyst David Schrier told Telematics Journal. "Satellite digital multimedia broadcasting represents a cost effective way to deliver fresh video content to the vehicle."

Market analysts are also expecting Terrestrial DMB services to launch next month, led by the country's major cable news, radio, and television broadcasters. Once terrestrial servcies are launched, then the battle for subscribers will begin.

Schrier added that ABI Research expects the total number of terrestrial DMB subscribers to be significantly higher than satellite DMB subscribers, as terrestrial-based services will be free and feature better programming. However, it will be challenging for terrestrial DMB broadcasters to come up with successful revenue models. This is why they have been petitioning the government to be allowed to charge subscription fees.