CJ OnStyle, a major South Korean home shopping channel, has cut ties with three cable TV operators. (Image courtesy of CJ OnStyle)
SEOUL, Dec. 11 (Korea Bizwire) – CJ OnStyle, a major South Korean home shopping channel, has cut ties with three cable TV operators—D’Live, ABN (Areum Broadcasting Network), and CCS Chungbuk Broadcasting—after negotiations over broadcasting fees collapsed.
The unprecedented move has drawn attention, with industry insiders attributing the decision to CJ OnStyle’s strategic pivot toward mobile commerce as traditional TV shopping faces declining viewership and profitability.
The conflict began in November when CJ OnStyle demanded a 50% reduction in broadcasting fees, refusing to compromise even as the December 1 deadline loomed. The standoff ended in a “blackout,” marking the first time the company has gone through with such a drastic measure.
Analysts view the move as part of CJ OnStyle’s broader “post-TV” strategy, which focuses on transitioning to mobile platforms amid falling TV ratings and stagnating growth.
CJ OnStyle’s shift is backed by data: in the first half of 2024, 56% of its sales came from online platforms, surpassing TV transactions. This trend accelerated with the introduction of mobile-exclusive live commerce featuring celebrity hosts, further solidifying its digital-first approach.
The financial strain on CJ OnStyle underscores the urgency of this transition. In 2023, the company’s revenue dropped by 1.3% to KRW 1.34 trillion, and operating profit declined for the third consecutive year to KRW 69.3 billion—a sharp fall from KRW 179.2 billion in 2020. Competitors like GS Shop reported stronger performance, adding pressure on CJ OnStyle to streamline operations and enhance profitability.
Industry observers suggest that the broadcasting fee standoff serves as a calculated effort by CJ OnStyle to phase out low-profit cable partnerships, making way for more lucrative mobile operations.
While the company insists that TV remains a vital platform, it emphasized that fee disputes arose from non-compliance issues with the three terminated operators. Negotiations with 11 other cable operators reportedly remain on track.
As CJ OnStyle accelerates its mobile transformation, the ongoing dispute signals a challenging road ahead for traditional home shopping channels navigating the digital shift.
Ashley Song (ashley@koreabizwire.com)
