A11)
iv):
There would be no competitive stimulus to TVB to maintain much less to improvs - the quality of its programmes during the monopoly period.
The television coverage, sponsorship and support of sports and other special features must necessarily suffer, and the television incoma to sports is likely to decline severely by reason of absence of competitive bids.
(If Rediffusion were not forced to close down its operations, although they operate by a different method the present stimulus to programming and the present coverage of sports etc., would continue until the advent of off-air broadcasting by the Rediffusion consortium).
Over 50,000 wired sets at present on the Rediffusion network (serving an audience of
about 210,000) would no longer receive programmes, unless at least $150 were spent on cach of them y to convert them to off-air reception. Their
owners would therefore lose the economic advantage of a wired receiver. A number of sets may not be capable of conversion to off-air reception at all. (This consequence obviously would not come about if Rediffusion were not forced to close its operations).
By Government:
v)
vi)
Advertisers will be forced into a monopoly grip, in which the opportunity will be presented for airtime rate increases to be made and long term "tying" conditions imposed. If the cost per mille is forced up, inevitably this will be reflected in an increase in the price cÍ advertised goods, which would have an inflationary effect.
The public purse will suffer.
If RTV is granted a new licence by private treaty in the near future it will commence off-air broad- casting and paying royalties to Government (assumed at 10% of gross revenue, after agency commission) in January 1973. If tenders are adopted, the earliest that royalties could be paid by the successful tonderer is January 1974 (in the case of RTV) or October 1974, in any other case.
It
.../ovez