IPTV's videos on demand for television programs, their usage patterns, and inter-channel relationship in Korea

In Korea, rapid technological advances, accompanied by growth in the adoption of internet protocol television (IPTV), are driving the use of videos on demand (VODs), especially VODs for television programs (TV-VODs). This study examines the relationship between the viewing rates for television programs at their original broadcast and the quantity of TV-VOD streaming hours, namely how television program distribution on one channel affects its usage on another channel. An empirical analysis is carried out using the data for TV-VODs of 605 television programs. Empirical results indicate that a television program's viewing rate is positively related with the quantity of streaming hours, providing empirical evidence on the positive inter-channel relationship. This positive relationship, however, is weaker for news and cultural programs than for dramas and variety shows, and is absent for unpopular television programs. Based on the study results, several implications are offered to television broadcasters, advertisers and broadcasting regulators.