promotes the coverage of its programmes and to be in a

position to claim benefit in increased

advertising revenue from the extent

to which wired receivers relay its

programmes.

25. On the other hand, TVB would be

placed at some disadvantage. Firstly,

RTV would have complete freedom to

make use of TVB programmes, but TVB

could not put out RTV programmes without

a special arrangement with RTV since

the Hong Kong Government is not

proposing to withdraw RTV's exclusive

rights to relay and, for obvious

technical reasons, TVB cannot tap

RTV's programmes without the latter's

agreement and co-operation. Secondly,

while wired relay would undoubtedly

increase the coverage of TVB programmes,

there is some doubt whether this would

enable TVB to raise its advertising

charges and it might make it

necessary for TVB to pay more for its

programmes. It is likely that TVB's best

interest lies in a continuous increase

in the number of wireless television sets

in use and to that extent the company

has an obvious interest in restricting

the relay of its programmes. The

extent of TVB's viewing audience can be

cdemonstrated more effectively to

advertisers when its programme is

received by wireless receivers only,

by reference to the number of such

sets in use. By bringing two channels

into the homes of viewers on a single

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