Establishment of joint venture with U.S. terrestrial broadcaster Sinclair
Joint development of next-generation broadcasting standard ATSC 3.0 solution
Creation of new services such as in-vehicle terrestrial broadcasting


SK Telecom's aggressive moves in the media sector are impressive.

SK Telecom announced on the 8th that it will establish a joint venture with Sinclair Broadcast Group to target the US next-generation broadcasting solution market, which is worth 20 trillion won (industry estimate, size of the US ATSC 3.0-based Headend, Broadband solution market over the next 10 years).

SK Telecom announced the launch of its Oksusu business organization and the integrated corporation of the three domestic terrestrial broadcasters to mark the new year, and plans to expand its media business in earnest by joining hands with overseas broadcasters and entering the next-generation broadcasting solution market.

SK Telecom and Sinclair signed an agreement on the establishment of a joint venture on the 7th (local time in the US). The two companies will each invest $16.5 million, a total of $33 million, in the joint venture and begin joint management. The joint venture is scheduled to launch within the first quarter.

The joint venture aims to take the lead in the next-generation broadcasting market at a time of great transformation in the U.S. broadcasting industry. The U.S. broadcasting industry is establishing the next-generation broadcasting standard ATSC 3.0 in 2018 and preparing broadcasting services that are more advanced than the existing ATSC 1.0.
ATSC (Advanced Television Systems Committee) 3.0 is an American digital TV broadcasting standard that was commercialized (UHD broadcasting) in Korea in 2017 and enables high-definition video data transmission at high speeds.

In the ATSC 3.0 broadcast environment, various types of data can be transmitted through broadcast frequencies, and heterogeneous combinations of broadcasting networks and communication networks (LTE, Wi-Fi, etc.) are also possible. This will enable media operators to provide new forms of media services.

It is also easy to expand services by taking advantage of broadcast frequencies, which have a wider reach and lower operating costs than telecommunication frequencies.


ATSC3.0 broadcast solution commercialized in 2019
The joint venture will jointly develop ATSC 3.0 broadcast solutions and equipment, aiming for first commercialization in the U.S. in 2019.
SK Telecom and Sinclair expect that within the next 10 years, approximately 1,000 broadcasting stations across the U.S. will rush to adopt ATSC 3.0-based solutions and equipment. The two companies plan to proactively supply solutions to U.S. broadcasting stations through the joint venture.

When ATSC 3.0 broadcasting solutions are commercialized, new media services such as personalized advertising, in-vehicle terrestrial broadcasting, and map updates will appear. Since the user’s personal IP (Internet Protocol) can be recognized through the broadcasting frequency, two-way services will be provided between media providers and the user’s smartphone-vehicle-TV.

Accordingly, the media viewing environment of American viewers is also expected to change significantly. You will be able to select advertisements and VODs that suit your tastes on smartphones, tablets, TVs, etc., and you will also be able to watch high-quality terrestrial broadcasts and update navigation maps wirelessly while in a moving car.


Native media technology opens up opportunities to reach American viewers
This collaboration will pave the way for SK Telecom's native media technology to reach the homes of American viewers. The number of American TV-viewing households reached 120 million as of the end of 2017. SK Telecom expects that if it succeeds in the American market, it will have additional business opportunities in other overseas markets.

Small and medium-sized media companies that have experience in commercializing ATSC 3.0 broadcasting solutions with domestic broadcasters led by the Korean government can also expand their overseas business opportunities. There will be an opportunity to supply various equipment essential for ATSC 3.0 broadcasting, such as encoders and MUX (Multiplexers), to American broadcasters.

SK Telecom has drawn upon its world-class media technology that it has accumulated over a long period of time to lead the collaboration with Sinclair.

SK Telecom successfully commercialized the world's first mobile live broadcasting technology, TLS (T Live Streaming), in 2016 by applying it to Oksusu's real-time channel. In addition, it is leading the global technology standards in the field of next-generation media transmission technology (MMT) and holds numerous patents.

Sinclair will be a strong supporter driving the growth of the joint venture.

The joint venture could generate significant revenue by supplying ATSC 3.0 broadcast solutions only to Sinclair Broadcast Group broadcast stations.

Sinclair has a 40% share of household viewership as of 2017. It has 173 TV stations and 514 channels across the United States and has shown steady growth every year, with annual sales of $2.73 billion in 2017.

Meanwhile, SK Telecom and Sinclair signed a memorandum of understanding at CES 2018 to collaborate on ATSC 3.0 broadcasting, and agreed to establish a joint venture a year later.
SK Telecom President Park Jung-ho said, “We plan to take the lead in the U.S. next-generation broadcasting solutions market through close cooperation with Sinclair Broadcast Group,” and “We will strengthen domestic and international cooperation to provide media services with global competitiveness in the 5G era.”

“We are delighted to see the synergy between SK Telecom’s media solutions and Sinclair’s broadcast infrastructure,” said Christopher Ripley, CEO of Sinclair Broadcast Group. “We believe the collaboration between our two companies will further evolve the broadcast and internet platform environment in the United States.”