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Who are going to survive in the three-kindgoms-like domestic free TV war

出自香港新聞網 - 樹仁新傳系學生實習習作

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Hong Kong|By Jack Hui Chun Kit

Published 22 Jan 2013

Lee Po On, the executive director and group general manager  of  Television Brocasts Limited (TVB) , said today if HKTV got the domestic free TV licence, it would let the whole industry lost 100 millions.

Lee attended a local university assembly, said Hong Kong can have only two TV stations in a good operating condition. He explained that the adverstistment spent is a demand  driven. The spent would not increase with the number of TV stations. He said due to the licence and social responsibilty, there are limited types of advertistment can be broadcast in free TV. 

He added the local advertistment spent in domestic free TV maintains at around 3 billions in the recent  decade. He estimated the figure will keep stable. The market cannot be expand as big as the free newspaper market . (Where 8 in Chinese and 1 in English now in Hong Kong) He afraid that the new competitor,HKTV, would create a competition worse the TV industry income in a whole.

Lee also has an accouting profession. He estimated by figures that Hong Kong Television (HKTV) would be the first loser in the free TV market competition. He counted that if HKTV applied for 12 years licence, it took 4 to 5 billion investment to run a station for the first three years. It included building the TV factory, producing 600 hours drama and other expences.

For the income, Lee suggested that the advertising income needs time to gain as building up a good will to attract advertisers is time consuming as well. They need to guarantee a consistent development . Besides, he said the oversea market would not accept their dramas. Therefore,he concluded the HKTV would be beaten down first as they were having a big lost.

For Asian Television (ATV), he described her as a humble and practical runner. He explain that ATV has a lower running cost as they just brought overseas drama and produce low cost show,they can survive longer as having a rather small lost.

For TVB itselfs, he said they earned 1.5 billion last year and the salery of their employers increased. They are not afraid for having a profit cut to 200 millions as they still make money and survive.

Lee stressed the government should consider fair competition and business friendly environment before offering new licences, maintaining a substaintable local TV development .

Nowadays, there are two TV stations, TVB and ATV,having the domestic free TV licences. The expired date will be in the novermber of 2015. However,the public are concerning government whether proving the third licence. HKTV has been fighting for it since last year.
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