CONFIDENTIAL
XCC(72)92
. 6
機密
solely upon subscriptions: were he allowed during them to collect revenue both from advertising and from subscriptions he would be given an unreasonable advantage over his competitors. It is thus recommended that a Pay-TV operator should not be permitted to include commercial advertising in any Pay-TV programmes.
22
However, the transmission of specific vocational training courses in isolation from other programmes might not provide sufficient subscription revenues to be viable. In these circumstances, it might be necessary to supplement the subscription transmission output with programmes of wider interest. If such additional programmes were of an educational or cultural nature (e. g. oriental or western music, general home studies as distinct from diploma courses, etc) and provided that they were forecast at the time of the tender application and, in the opinion of the selection committee formed a useful addition to the range of programmes promised by the other stations, then it would be reasonable to consider whether they should be allowed.
23
It is therefore recommended that if special services of the type outlined above were offered by applicants for the third licence and if one of the offers was accepted, then the content of these programmes should subsequently be regulated under the terms of the licence by the Television Authority. The Television Authority would have to satisfy himself that the programmes proposed were a valuable adjunct to the pattern of television programming in Hong Kong as a whole, and that any subscription programme material of a general nature did not conflict with the requirements of the conventional stations or with the cinema industry. This will leave it open for all sensible suggestions for special services to be considered.
Controlling interests held by television licensees in other companies
24
The recent acquisition by TVB of a majority holding in the China Mail has raised the issue of the desirability of television licensees acquiring controlling interests in business ventures other than television. Clause 10(a)(i) of the draft bill at Annex G states that the sole business of a licensee shall be to establish and operate a television broadcasting service. In support of this requirement, clause 11(1)(d) has been included to prevent a licensee company acquiring more than 49% of the voting shares in any business other than one directly connected with responsibilities of the licensee. Clause 11A(4)(b)(i) requires TVB within four years of the grant of their new licence to divest themselves of their controlling interest in businesses (other than any directly connected with their responsibilities as a licensee) acquired before the Television Ordinance was amended. "Capital Artists Limited" and the "China Mail" are the only such interests known to be currently held by TVB. From informal discussions with the company it appears that TVB would not contest this requirement on the understanding that all other television licensees are treated in a like manner.
25
It is therefore recommended that these clauses remain in the amending bill: Members' attention is specifically drawn to them because
they raise policy issues which were not considered by Council earlier.
CONFIDENTIAL
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