Taiwan Mobile supports competitor’s system in row with content providers

Taipei Times
Date: Jul 07, 2017
By: Lisa Wang / Staff reporter

Taiwan Mobile Co (台灣大哥大) yesterday threw its support behind a profit-sharing scheme based on viewing ratings, saying such a mechanism would be a win-win for content providers and TV services providers.

The nation’s No.2 telecom operator’s comments came as friction between Chunghwa Telecom Co (中華電信) and certain content providers about its multimedia-on-demand (MOD) Internet TV business led to consumer disputes following the launch of a new profit-sharing plan early this month.

Chunghwa Telecom has received numerous complaints from MOD subscribers over substantial cutbacks in on-demand channels due to the company’s conflict with its content providers over the profit calculation formula.

Under Chunghwa Telecom’s new profit-sharing program, “quality” content providers and TV programs with higher ratings would receive bigger shares of profits, while producers of “poor quality” content are granted smaller shares of profits and might be eliminated over time.

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