Subscribers of Chunghwa Telecom’s multimedia-on-demand (MOD) services are to be able to watch home shopping channels following a decision by the National Communications Commission last week.
Established in 2003, the MOD system is an open Internet platform and does not discriminate against broadcasters in its channel lineup.
However, MOD subscribers cannot view several popular cable channels and home shopping networks, as the networks fear a backlash from cable operators which compete with MOD, and choose not to have their channels aired on the system.
Although the nation’s terrestrial television networks broadcast their programs on the MOD system, some of the programs cannot be viewed by subscribers due to contracts between the networks and cable operators.
Chunghwa cannot launch its own channels due to the regulations banning government investment in media outlets, political parties and the military. The Ministry of Transportation and Communications holds about a 35 percent stake in the telecom.
Chunghwa Telecom chairman Cheng Yu (鄭優) has been seeking to overcome the obstacles facing the MOD system since he assumed the position in December last year.
The competition between MOD and cable systems recently came under scrutiny due to a dispute over the broadcast of World Baseball Classic games. MOD subscribers were unable to watch the games on the Public Television Service (PTS) because the channel has not paid for the right to have the games aired on Internet protocol television. MOD subscribers were shown other PTS programs while the channel aired the games on cable.
Cheng protested the practice, saying that cable subscribers can watch PTS programs only because PTS is among the cable system’s must-carry channels.
Commission spokesperson Wong Po-tsung (翁柏宗) said that the commission respects the market in terms of content authorization.
However, Wong said that PTS was reluctant to buy the right to air programming on Internet protocol
TV because Chunghwa was obligated to broadcast content provided by non-commercial television channels without asking for any compensation from the subscribers.
The regulation, Wong said, made the channels less likely to buy Internet protocol TV rights, as it meant that viewers cannot be charged for watching the content.
Wong said that the commission decided to change the regulation at last week’s meeting, allowing the company to charge its MOD subscribers.
The commission also decided that home shopping networks that have been in operation since 2015 can be aired on the MOD system, after amendments to the Satellite Broadcasting Act (衛星廣播電視法) were approved by the Legislative Yuan in December 2015.
The commission has yet to approve a proposal by Cheng to let the company establish its own channels, Wong said, adding that it needs to study the legal ramifications of the proposed move.
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