Government's caution in awarding TV licences is justified
Robert Chua says the advertising revenue pie in Hong Kong is simply too small to support five television stations, and the government was right not to grant all three new licences
I speak from almost 50 years of experience in the TV industry, having worked my way up from the lowest ranks in TV production in Australia, worked in Singapore, helped start TVB, and then owned and operated a private television channel in the 1990s.
Had it been up to me, I would have recommended the government grant only one new free-to-air TV licence instead of the two that were awarded, and certainly not the three the public feels it should award. It would be irresponsible of any government to award more licences, knowing that at least one station will certainly fail.
Some say the market should decide. I would argue that, due to the limited TV advertising revenue in Hong Kong, there is no way five television stations can survive: leader TVB would see its profits fall and the rest would bleed badly, with one succumbing to a quick death within two years.
Since two licences were awarded, the government's decision to grant them to the more experienced i-Cable's Fantastic Television and PCCW's Hong Kong Television Entertainment was correct.
TV viewer numbers will continue to fall as people turn to the internet for entertainment. They watch movies, play games and catch up with TV shows on demand, such as through TVB's myTV. Free TV channels will gradually lose their prominence and popularity.
I urge the public not to protest for the sake of protesting, without understanding the local TV industry
I urge the public not to protest for the sake of protesting, without fully understanding the dynamics of the local TV industry. Hong Kong people should not support awarding a third free-TV licence just because they resent the government, TVB and/or ATV. In fact, many of the protesters hardly ever watch TV.
