SEOUL (AFP) - US software giant Microsoft agreed Tuesday to set up a joint venture with two South Korean firms for a foray into the countrys nascent Internet TV market, officials said.
The deal reached here involves Microsoft, South Koreas second-largest portal Daum Communications Corp and local set-top box maker Celrun, said Daum spokeswoman Park Hyun-Jung.
Daum will provide content and know-how, while Microsoft agreed to offer its own internet-protocol TV (IPTV) solutions and focus on overseas marketing, she said. Celrun will provide equipment.
Internet TV allows viewers with a broadband connection to choose content as well as receive live programming.
South Korea, despite being one of the worlds most wired societies, has been relatively slow to introduce it because of disagreements between the broadcasting and communications industries.
"The deal is part of our preparations to launch the IPTV service following the recent passage of a related bill in parliament," Park told AFP.
The bill would allow customers to watch video on demand (VOD) this year, as well as real-time programming including sports, dramas and news from next year.
"We aim to start the VOD service in the second quarter of this year when the joint venture is formally launched," Park said.
"We are also ready to provide real-time broadcasting if we acquire a licence from the government."
Daum is the third company to enter the countrys IPTV market to offer VOD. Hanarotelecom, a fixed-line Internet operator, is the leader in the VOD Internet TV industry, followed by local giant KT Corp.
"The IPTV market, which absorbed about 1.1 million domestic clients last year, is growing fast. We predict there will be 16 million local clients by 2011," Park said.
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