Taiwan set to overhaul terrestrial TV

The NCC has decided to stop forcing cable TV companies to carry terrestrial channels. In the future, the NCC says, cable providers must negotiate with the terrestrial channels such as Formosa TV and Taiwan Television Company for their programming.

Consumer advocates blasted the NCC for the decision. The chairman of the Consumer Foundation, Hsieh Tien-ren, said he does not see the logic behind the decision. He said that while most people no longer watch the terrestrial channels, the disappearance of those channels will lead to mass protests.

“Whether or not this proposal makes it through the legislative process depends entirely on public opinion,” said Robert Hsieh, CEO, ZenithOptimedia Taiwan. “Public opinion, in turn, depends on whether it will benefit the TV viewing audience.”

Cable providers and terrestrial channels are split over the rule change, though. Some welcome the chance to vie for a better deal. Others say they are afraid that the move will disrupt a stable relationship and could be harmful to all parties involved.

What is certain is that eliminating the ‘must-carry’ rule would benefit terrestrial TV channels, as their only current source of revenue is advertising, which has been in a steady decline over the past decade. A change of status would free them to charge broadcasting fees.

The NCC’s reason for proposing the end of ‘must-carry’ status, according to the Liberty Times, is that Chunghwa Telecom’s IPTV offering, MOD, has no ‘must-carry’ stipulation for terrestrial TV channels.

MOD must pay to broadcast FTV, CTV and TTV programming, which despite being down on their luck, produce many of Taiwan’s most highly viewed TV shows.

NCC chairwoman Peng Yun said that once negotiations begin, competition will help to restore market order.

In May, the new owner of Taiwan's China Times Group claimed that it was singled out for tough treatment by a NCC ruling. The NCC approved Want Want Holdings’ purchase of the China Times Group, initiated last November, but the regulator’s decision is contingent on changes in how the China-based Want Want Group will operate the Taiwan media conglomerate’s broadcast and print properties.