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Article

Title: Hanaro's New Growth Channel: TV

Author: Ramstad, Evan Article Type: Company
Source: Wall Street Journal, v250 n51 pB4(1) Publication Date: Aug 30, 2007
  ISSN: 0193-2241
URL of Publication: http://www.wsj.com

South Korean Hanaro Telecom has found a way to continue to grow even though broadband is already ubiquitous in the country. The company is providing video content for download to TVs through its Hana TV service. Korean government regulations prohibit telecom companies from competing directly with cable and satellite-TV systems so the company could not offer streaming broadcasts. These laws are currently being reformed. There is a monthly fee as well as small additional fees for certain content, mostly movies. In its first year of availability Hana TV has attracted 500,000 customers and this number is expected to double in the next year. These sorts of services, called Internet protocol television (IPTV), capitalize on viewers increasing interest in controlling their TV viewing, a trend which also includes TiVo. Hanaro Telecom executives feel the services greatest strength is its 'interactivity,' and stress that it does not necessarily replace cable TV. The service is beginning to attract advertisers. IPTV services such as the one offered by Hong Kong telephone company, PCCW Ltd., are competing with cable TV. AT&T plans to deploy IPTV in the U.S., though this effort is still in its early stages.

Companies:
AT&T Inc Hanaro Telecom Inc
PCCW-HKT Ltd

Products:
hanaTV
Korea

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