*********************************************************
The Chief Executive in Council today (November 12) approved the renewal of the domestic free television programme services licences of Asia Television Limited (ATV) and Television Broadcasts Limited (TVB) for 12 years.
Announcing the decision at a press conference this afternoon, the Secretary for Commerce, Industry and Technology, Mr Henry Tang, said that the new licence conditions reflected a balance between public aspiration and the commercial considerations of the two licensees.
"The licence renewal exercise has gone through an extensive consultation process. The Broadcasting Authority (BA) commissioned a Broadcasting Services Survey in the first quarter of 2002 and held a public hearing in April 2002 to collect views from the community. Legislative Councillors were also briefed on the views collected.
"Meanwhile, both licensees were also consulted on their views on improving the business environment and details of the new licence requirements" he said.
Mr Tang pointed out that the new licence conditions and proposed amendments to the BA's Codes of Practice were based on two major considerations.
"Firstly, new programming requirements have been included to cater for the needs of the hearing-impaired, teenagers, senior citizens, and English-speaking community in Hong Kong.
"The second consideration is the influence of free terrestrial TV in the community. We hope that free terrestrial TV service, while providing us with entertainment, will also enhance the language ability of the audience, and help promote the public's appreciation of arts and culture. In formulating these new programme requirements, we have fully considered the commercial interest of the two licensees as well as their social obligations," Mr Tang said.
In order to provide a more conducive environment for the broadcasting business, Mr Tang said there were three areas of relaxation.
Firstly, more flexibility is provided in programme scheduling. For instance, the two licensees are allowed to broadcast more Putonghua programmes on the Cantonese channels; and to broadcast more non-English and non-Cantonese programmes on the English channels during prime-time.
Secondly, more flexibility is provided for generating advertising revenue. For instance, the licensees will be allowed to broadcast more advertisements produced in Cantonese on the English channels. There will also be relaxation on the restrictions on product placement (i.e. exposure of commercial products/references within a programme to achieve an advertising effect) and sponsored programmes.
Thirdly, flexibility is provided on programme requirements and standards for digital services to facilitate the roll-out of innovative services in response to the market during the migration from analogue to digital broadcasting.
"We have fully considered the views and interest of the public, the licencees, as well as the regulatory authority in formulating all the licence requirements and relaxations.
ATV and TVB have also committed to investing a total of $2.4 billion and $7 billion respectively from 2004 to 2009 for programme production and capital investment. Additional investment will be made for the transmission networks which will be covered by the separate carrier licences," Mr Tang said.
"I am pleased that the licence renewal exercise was accomplished in an open and balanced manner, taking into account different interests. I look forward to free terrestrial television services under the renewed licences, to be provided in a more conducive business environment, that are more responsive to the aspiration of the community," said Mr Tang.
Details of the renewed licences are available at the following website: http://info.gov.hk/itbb/english/broad/index_n.htm.
End/Tuesday, November 12, 2002
NNNN
