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Speech by FS at CASBAA Convention 2011 (English only) (with video)
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Below is the speech by the Financial Secretary, Mr John C Tsang, delivered at CASBAA Convention 2011 held in Grand Hyatt this (November 1) morning:

Marcel (Fenez), Distinguished Guests, Ladies and Gentlemen:

     Good morning to you all.

     It is indeed my great pleasure to join you all again at this year's CASBAA Convention, and to welcome all our visitors to Hong Kong.  

     Hong Kong is proud to be home to CASBAA's headquarters.  We are also delighted to have been the host city for this Convention for the past nine years.

     During this time, the CASBAA Convention has grown into a major forum drawing pay TV industry players from across the region.  

     Over a similar time span, Hong Kong's broadcasting industry has also enjoyed robust growth brought on by new technology and intense competition.  The Government plays its part by promoting innovation and investment and maintaining an open and level playing field for all our companies.

     A level playing field for business together with a free flow of information, including a free and unfettered media, are two of our cityˇ¦s four pillars of success.  The others are the rule of law and a clean and efficient government.

     We pursue market-driven, technology-neutral broadcasting policies, and regulate the broadcasting industry with the lightest possible touch.  All this benefits consumers and promotes choice.

     I am pleased that CASBAA rates Hong Kong as one of the most favourable and competitive environments for the pay TV industry.  This tells us that we must be doing something right!  

     Hong Kong's seven million people are indeed spoilt for choice: they can choose from over 370 TV channels offered by free and pay TV licensees.  

     I am also encouraged that 17 non-domestic television programme service licensees have chosen Hong Kong as their regional base.

     In terms of analogue radio broadcasting, our two home-grown commercial stations and our public service broadcaster, offer 13 programme channels.

     Allow me to share with you some of the recent developments in our broadcasting industry.

     Since the opening up of the pay TV market in the year 2000, our domestic pay TV market has grown by leaps and bounds in terms of subscription size, programme variety and services. Currently around 2.4 million people in Hong Kong subscribe to licensed pay TV services.

     The three domestic pay TV licensees provide a total of 360 channels, a nine percent increase over last year.  They also offer a total of 22 High Definition (HD) channels ˇV a big increase over the eight HD channels we had last year.

     Meanwhile, free TV continues to be a popular medium for entertainment, information and education.  Despite the emergence of the "new media" that has altered the market environment, thereby affecting the future competition landscape.

     We are now processing three new applications for domestic free TV licenses, and we hope to come to a decision as soon as we can.

     We aim to switch off analogue TV by the end of 2015.  We are giving terrestrial TV broadcasting a strong push in this direction.  In fact, the digital TV broadcasting network is expected to reach 96 per cent of our population by the end of this year.  At present, about two-thirds of our households enjoy digital TV.

     As part of our strategy to develop digital broadcasting, we granted sound broadcasting licenses to three commercial operators in March this year to provide digital audio broadcasting.  The three licensees and the public service broadcaster plan to launch their services soon with up to 18 channels.  

     We have also licensed a company to provide broadcast-type mobile TV services.  The much-anticipated launch of this service is slated for early next year.  

     So, within the coming few months, people in Hong Kong will be able to enjoy even more new broadcasting services and greater programme variety.

     Rapid media convergence has made the traditional boundaries between telecommunications and broadcasting increasingly blurred.  

     To sustain a regulatory environment that will help us to capture new opportunities and meet new challenges, we enacted the Communications Authority Ordinance this summer.  In April next year, the two separate regulators for telecommunications and broadcasting will become a unified regulatory authority called the Communications Authority.

     The global economy is facing much uncertainty amidst growing concern over the Eurozone debt crisis and subdued economic growth in the US.  To stay competitive, it is even more important for us to nurture creativity in all areas, including the broadcasting and communications sectors.  

     Indeed, fostering creativity and technology is part of our long-term strategy to diversify Hong Kong's economy and to stay competitive.  As part of the strategy, we are nurturing six new industries where Hong Kong enjoys clear advantages.  These include the innovation and technology sector and cultural and creative industries.

     The Government works closely with our creative industries to develop, promote and stage signature events to establish Hong Kong as a creative hub.  

     We also encourage local creative industries to make good use of the $300 million CreateSmart Initiative or CSI that we have established to support projects that will help enhance these industries.

     For two consecutive years, the CSI has sponsored the Community Outreach Programme of this Convention.  We want more local SMEs and students to participate in, and gain from this major annual event.

     Ladies and Gentlemen, we will continue to promote creativity, encourage diversity and nurture new talent for the broadcasting industry in Hong Kong.  We shall also maintain a level playing field for the industry.  This will benefit audiences as well as industry players in Hong Kong and across Asia.  The CASBAA Convention and all its participants have an important part to play in the development of the broadcasting industry in Asia.  From where I am standing, the future appears to be bright indeed.

     I wish you all another successful Convention and our visitors an enjoyable stay in Hong Kong.  

     Thank you.

Ends/Tuesday, November 1, 2011
Issued at HKT 09:15

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