Skylife Is Rising Vigorously

Skylife, Korea’s unique satellite TV station, is rising surprisingly this year after four-year consecutive steady profit. The company during the early few years since its opening on March 2002 had been branded as “hopeless headache” to the investors and the government. The satellite TV wearily struggled to capture city’s viewers with CATV already dominating in crowded apartments. It also faced tough resistance of regional terrestrial TVs, which were fearful that their key stations’ programs relayed by the satellite channels would deprive regional viewers of them. Regional broadcasts unions required the satellite TV not to relay their central broadcasting completely. Skylife absolutely could not accept the unions’ argument. After undergoing many twists and turns, it settled down that regional broadcasting is being relayed and given one superstation channel for the regional broadcasts.

Skylife held the regular shareholders’ general meeting on April 25, 2010 and settled the accumulated deficits through the last four-year net profit and and reduction of the capital. A high-post executive said, after the general meeting, that the company would show two-digit growth rates of each sales and net profit this year and surpass 3 million subscribers within the end of this year.

The main factors for the strong soaring are indicated two: the first is a special service combining its satellite TV and IPTV’s VODs of KT (Korea's second largest telecommunication company). The subscribers can enjoy real-time channels like CATV and additionally can watch tens thousands VODs of IPTV except for the IPTV’s real-time channels. KT is the largest shareholder of Skylife.

The second factor is that Skylife is broadcasting 61 high-definition channels about two times than 30-40 ones of CATV. This HD-centered channels strategy has helped to give it to form a high-class image.

The CATV presently accounts for over 80 percent (15 million subscribers) of the whole viewers and has been threatening the terrestrial and satellite TV positions during the last 10 years. But recently the CATV experienced the first decrease of its subscribers on the quarter basis. The strong surge of Skylife is shaking the firm castle of CATV. (The end)