(Person) Percentage - Sabanci University Research Database

The Asian Media & Mass Communication Conference 2010 Osaka, Japan
agent and the domestic TV stations purchasing its own from Korea.
In fact, Taiwanese TV stations transaction with foreign buyers usually evaluate
the program based upon TV rating. However, TV rating in different countries is based
on the different factors like population structure and culture level. Thus, we will not
get a full picture whether the rating in Korea is equivalent to that in Taiwan.
Therefore, the purpose of this research is to explore the model of signing the Korean
program contracts by TV industry in Taiwan. It is suggested that the buyer usually
makes a deal on the basis of the program rating in Korea, story, actors, the reputation
of company, the differences of cultural, and media buyer’s experiences. But in this
respect, huge risks exist. The domestic TV industry in face of different copyright
holders will take a different governance of contract and select a different channel to
purchase programs. Finally, according to transaction cost theory, secondary data, and
interviews, we propose the mode of signing contract for buyer, and the protection
strategy for domestic TV industry.
Literature Review
The commercial activity of purchasing foreign copyright is done mainly through
signing the contract. The bottom lines of contracts are broadcast right and peripheral
product right; the broadcast right was divided into cable broadcast rights, TVB
broadcast right, and DVD / VCD (Luohuan Rong, 2005). Although there is a "trade
show" in which film and drama are transacted by channel, but it's not considered the
role of a "agent broker"; it is a bridge for buyers and sellers . As of contract,
regardless of form, it can be put into effective once agreed upon by both sides.
Therefore, this study will take the transaction cost theory to see when and how TV
corporate signs the contract.
Transaction cost theory
The transaction cost theory considers that there are a lot of factors during
transaction, such as unpredictable environment, which causes failure to fulfill request
at the transaction parties’ sides. In this case, they should pay the cost on renegotiation
and on protection of their rights and interests. In the transaction process, in addition to
transaction prices, the other costs involve as well. For example: marketing,
negotiation, contract, contract security, and other costs that are in advance of the
transaction. The costs after transaction include the cost for controlling of the other
party to perform the contract, the costs of incurred maladjustment original contract
and the cost for observing contracts that they can't restrain their own.
There are some unpredictable reasons during transaction and it will hinder
transaction. Williamson (1975) concludes that transaction outcomes result from the
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