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4.
CONFIDENTIAL
Another consideration which may be easier
'to assess in 1970, now that TVB have had a
couple of years of operation, is whether the
predictions of 1967 of the result of RTVs con-
temporaneously relaying/over wire) the TVB
me/ar
programme/are more easily assessable or likely
to be borne out. Put very briefly they were:
(a) TVB could not operate commercially
and the element of competition would
be destroyed if RTV, on a second
channel, carried TVB's programme.
Moreover, TVB could only increase
their advertising revenue by means
of a continuous increase in the
number of wireless receiving sets
in use. (We are not clear if they
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have a side interest in the manufac-
ture of these receivers.)
(b) RTV maintain that by carrying TVB's
programme on a second channel they Would
will not only be carrying out the
task which they were licensed in
;
1957 to do, but also would enable their
viewers to have a full choice. More-
over, TVB they say, could with reason
claim the right to raise their
advertising charges (and thus increase
their profit) because of the increased
audience. The value to RTV would of
course be that they might attract
further subscribers, but this would
not detract from TVB's revenue. In
their view, therefore, both RTV and
TVB stand to gain.
We should very much like to know whether the
experience of the last two years has caused you
CONFIDENTIAL
/to reach