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The study empirically analyses a linear relationship between terrestrial advertising rates and viewer ratings. Consistent with the results of preceding studies, the present study finds a convex relationship between standard advertising rates and viewer ratings. However, after all other sales practices are taken into account, a linear relationship is documented between per-minute advertising revenue and viewer ratings. Absent the exact functional relationship between the two, it is hard to evaluate accurately how efficiently or inefficiently the current GS System has operated, but it tells us that a certain level of market mechanism prevailed within the system. The findings are consistent with the 1 Public-1 Private Media Representative alternative among many alternatives currently sought by the KCC should we accept the premise that the public aspect is as equally important as, if not more important than, the efficiency aspect of terrestrial broadcasting.

Linear Relationship between Terrestrial Advertising Rates and Viewer Ratings