Korea’s traditional media powerhouses—the major terrestrial broadcasters and newspapers- are losing eyeballs and market share to the fast-growing online and pay- TV platforms. In 2006, Korean consumers spent an average of 2 hours 12 minutes per day watching terrestrial TV, down 12 minutes on the prior year. Conversely, average time spent online reached 12 hours 6 minutes per week, up one hour on 2005, according to Carat Korea. The leading cable broadcasters On*Media and CJ Media are catching up with the terrestrials in audiences and ad rates, and cable collectively commands a viewing share of just over 35%. The VoD market is growing, although the introduction of IPTV services has been delayed due to a regulatory impasse over realtime IPTV broadcasting. However analysts say the launch of IPTV plus the digitalization of cable and the proliferation of TV portals will re-shape the pay-TV landscape over the next few years as competition increases between cable and telecom operators in the distribution of video.