Plans to expand to countries promoting next-generation broadcasting

SK Telecom and Sinclair Broadcast Group, a U.S. terrestrial broadcaster, will jointly develop a next-generation ATSC 3.0 broadcasting platform that will lead innovation in the North American broadcasting industry.

SK Telecom and Sinclair announced that they signed a 'Memorandum of Understanding (MoU) for cooperation in leading the next-generation ATSC 3.0 broadcasting industry' at 'CES 2018' held in Las Vegas, USA.

The two companies will jointly develop a broadcasting platform based on ATSC 3.0, the next-generation broadcasting standard established in the United States. They plan to launch a pilot next-generation broadcasting service in the US and then launch a commercial service.

Sinclair is the largest local broadcaster in the United States, with 173 TV stations and 514 channels across the country. Last year, Sinclair's revenue was approximately $2.7 billion, and in 2016, it commanded a 40% household viewership share. Its coverage is broader than that of national broadcasters CBS (37.7%) and ABC (22.5%).

This collaboration provides SK Telecom with an opportunity to bring its mobile IPTV/media technology to the homes of American viewers. Starting with the US, SK Telecom plans to expand its ATSC 3.0-based broadcasting platform to countries like India, where next-generation broadcasting is being pursued.

Development of a next-generation broadcasting platform that provides viewer-tailored services within the first half of the year.

SK Telecom and Sinclair plan to develop a next-generation ATSC 3.0 broadcasting platform in the first half of this year. The next-generation broadcasting platform being developed by the two companies will provide: UHD content, IP-based viewer-tailored services, personalized advertising services tailored to individuals and regions, fixed and mobile mobile broadcasting, and region-based disaster alert services. It combines the strengths of IPTV and mobile with existing terrestrial broadcasting.

In particular, the two companies plan to actively leverage SK Telecom's mobile IPTV and media technologies. SK Telecom possesses the MMT (MPEG Media Transport) standard, a next-generation, ultra-low-latency transmission technology for high-definition video, and mobile MMT application technology that leverages the advantages of the mobile environment. Based on this standard, SK Telecom has successfully commercialized mobile IPTV.

In addition, the company possesses world-class technology in providing IP-based media services and network operations, including subscriber-based content recommendation services and AI-based network optimization.

The two companies plan to demonstrate the next-generation ATSC 3.0 broadcasting platform and application services for the first time at the 'NAB Show 2018 (National Association of Broadcasters),' the world's largest broadcasting equipment exhibition held in Las Vegas, USA in April this year.

Expanding into the global market based on a pilot and service cooperation model in the United States.

The two companies plan to provide next-generation broadcasting pilot services in select regions of the United States and continue to incorporate customer feedback into the platform, eventually launching commercial services.

The two companies will also jointly pursue entry into the global broadcasting industry. With countries like India likely to adopt ATSC 3.0 standard-based broadcasting, the outlook for the expansion of the global ecosystem for next-generation broadcasting platforms is also bright.

This collaboration was achieved through the alignment of SK Telecom's strategy to grow its media business as a pillar of New ICT and Sinclair's commitment to qualitative growth through business model innovation.

Sinclair has achieved significant growth through the acquisition of numerous media companies, including Four Points Media Group and Newport Television. During this period, the company invested over $4 billion in M&A alone.

However, to respond to the growth of OTT operators such as Netflix, Amazon, and Hulu, Sinclair is pushing for the introduction of a next-generation broadcasting platform that can overcome the limitations of existing businesses that rely on advertising revenue and content retransmission fees.

SK Telecom is also actively pursuing new media businesses to secure new growth engines. Through its partnership with Sinclair, SK Telecom aims to enter the US broadcasting industry and, in the mid- to long-term, create new revenue streams in the global broadcasting and media industries based on its next-generation media platform.

SK Telecom President Park Jung-ho said, “Through our collaboration with Sinclair, SK Telecom’s media technology will not only drive innovation in the global broadcasting industry, starting in the U.S., but will also provide an opportunity to secure new growth engines.” He added, “By sharing the core infrastructure of SK Telecom and global operators, we will accelerate the discovery of convergence business models that can create new markets that customers have not imagined.”