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Ministry of Culture, Sports and Tourism, Korea Communications Commission, report on the status of broadcast outsourcing production… Confirmation of differences of opinion on both sides

Broadcast program outsourcing transaction status report

Broadcast program outsourcing transaction status report

(Seoul = Larose.VIP) Reporter Hwang Jae-ha = There appears to be a difference in the two sides’ positions, with broadcasting companies believing that the production costs paid to content producers for outsourced production are appropriate or high, while production companies believe it is insufficient.

On the 19th, the Ministry of Culture, Sports and Tourism and the Korea Creative Content Agency published the ‘2023 Broadcast Program Outsourcing Transaction Status Report’, which inspected broadcast outsourcing production transaction practices.

According to this, a total of 8 terrestrial and comprehensive broadcasting companies were surveyed on their perception of the appropriateness of production costs paid to outsourced production companies, and the average score was 3.33. This survey was conducted by asking respondents to respond with a score ranging from very little (1 point) to very much (5 points) and averaging them.

On the other hand, the 97 production companies in charge of outsourcing production for these broadcasting companies scored an average of 2.05 on the same question, and there was a general perception that production costs were low.

Differences between the two sides’ positions were also confirmed in the results of a survey on which items of production costs should be increased or lowered.

When asked to select two production cost items that need to be adjusted upward, 71.4% of broadcasters chose ‘not applicable’, which was the highest selection rate. The proportion of people who chose ‘production crew labor costs’ and ‘planning fees’ followed at 23.8% and 14.3%.

On the other hand, when asked the same question, 74.2% of production companies cited ‘production staff labor costs’. This was followed by processing fee of 36.1%, planning fee of 35.1%, writer’s fee of 16.5%, and appearance fee of 8.2%.

When it came to items that required downward adjustment, 81% of broadcasters cited appearance fees, an overwhelmingly high percentage. 28.6% of the opinion said that production crew labor costs should be reduced, and 23.8% of the opinion that equipment and location rental fees should be reduced.

43.3% of production companies chose ‘not applicable’ for items requiring downward adjustment. However, 38.1% answered ‘appearance fee’, confirming the opinion that broadcast appearance fees are high.

Broadcast program outsourcing transaction status report

Broadcast program outsourcing transaction status report

When asked whether they felt there was a need to improve outsourcing transaction practices, production companies indicated a perception that it was necessary with an average score of 3.56 out of 5, while broadcasters scored an average of 1.93, indicating that there were no problems with current transaction practices.

It was found that standard contracts were used in most cases during the outsourcing process. When asked whether production companies use standard contracts, 88.7% responded that they do.

The rate of using a standard contract was highest for terrestrial dramas at 100%, and 66.7% for comprehensive dramas. For entertainment, 88.9% were terrestrial broadcasters and 86.7% were comprehensive channels, and for liberal arts, 87.5% were terrestrial broadcasters and 92.9% were comprehensive channels.

In addition, everyone showed a skeptical response below average (3 points) regarding changes in the outsourcing production environment due to OTT, but production companies were more positive. On average, production companies rated it 2.78 points and broadcasters rated it 1.67 points.

jaeh@yna.co.kr

Report to KakaoTalk okjebo 2024/02/19 10:09 Sent

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