Mon, Jun 06, 2022 page3

• NCC numbering plan for TV channels draws mixed reaction from operators

  • By Shelley Shan / Staff reporter
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  A National Communications Commission (NCC) proposal that TV channels should be numbered using three digits has drawn mixed reactions from channel operators: While some say it would further dilute their revenues, others say it would help level the playing field.

  The policy was proposed as the current two-digit system has led to congestion in certain channel blocks and rising disputes between channels and cable systems. It has also hindered new channels entering the cable service market.

  In addition to the new numbering system, the policy would divide channels into eight blocks.

  

  People attend a hearing at the National Communications Commission offices in Taipei on Thursday.

  Photo: CNA

  Channels with “1” as the first digit would be “must-carry” or family channels, while those beginning with “3” would be variety show channels. Numbers “5,” “6” and “7” would be news, movie and sports channels respectively.

  The number “8” would be the first digit of drama or faith-based channels, while “9” would represent adult or music channels. Home shopping channels, which are not numbered, would be placed between blocks.

  The NCC proposed two solutions to help viewers adapt to the new numbering system.

  The first is to allow the current and new cable numbering systems to coexist for two to three years, so if people want to watch TVBS on Channel 56, they can press either 56 or 556; the second is to allow people to watch TVBS on Channel 556 by pressing only 56.

  The Satellite Television Broadcasting Association (STBA) proposed its own plan at the public hearing, which is to keep the two-digit numbering system, but add channels with three-digit numbers.

  The key problem facing the cable service industry is an unfair distribution of subscription fee revenue between cable system operators and channel operators, not a shortage of channels or challenges in arranging the channel lineups, STBA spokeswoman May Chen (陳依玫) said on Thursday at a hearing.

  Of the subscription fee revenue, less than 30 percent would go to channel operators as content authorization fees, which must be shared among channel operators, she said.

  The association is against the first solution proposed by the NCC, which would cause the number of cable channels to increase dramatically, she said.

  “The commission should conduct an industry impact assessment before implementing the new policy,” she added.

  Eastern Broadcasting Corp legal affairs representative Chu Yu-hua (朱玉華) said the new policy would not address the disputes that arise whenever cable systems try to change their channel lineups, nor would it help channels generate additional revenue.

  Content authorization fees and advertising revenue are a channel’s two main revenue sources, although advertising revenues have declined significantly due to the rise of over-the-top media services and other online media, she said.

  The NCC’s policy would leave them with an even smaller slice of content authorization fees, she said.

  However, Chinese Satellite Television Communications Group legal affairs department director Kuo Lian-bin (郭聯彬) said his group supports the new policy, as it would contribute to ensuring effective competition.

  Of 300 licensed channels in the country, only about 80 channels are frequently accessed by viewers, Kuo said.

  “It is like an area that is open for businesses, but only about 80 channels get to have shops on main streets, while the rest can only have shops in alleys,” he said.

  Kuo criticized the plan proposed by the STBA, saying it only serves to protect existing channel operators.

  The NCC should have the moral courage to defend its policy, he said.

  Cable Broadband Institute in Taiwan chief executive officer Claudia Peng (彭淑芬) said the new channel numbering policy and the distribution of subscription fee revenue should remain separate issues.

  “We hope the commission gives cable operators more freedom to arrange channel lineups and lifts the cap on subscription fees to facilitate competition,” she said.

  National Chengchi University associate professor of radio and television Tseng Kuo-feng (曾國峰) said the policy would enable each block to accommodate more channels.

  Cable systems and channel operators should realize they are unable to profit alone, particularly now that they are facing competition from streaming media operators from overseas, he said.
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