tailor-made
erosion of
This proposal has been endorsed by
has been endorsed by the Broadcasting Authority (BA), which considers
considers that such deregulation is in step with practice elsewhere in the world and would lead to greater variety of entertainment programmes being offered to local viewers, although given the cost of setting up reception facilities, the reception of overseas television programmes via satellite is not expected to be widespread. Also, as television programmes currently receivable are not for the local market, there should
should be ΠΟ marked audience of the local television licensees. Clearly as satellite broadcast material is of overseas origin, it will not be possible either to pre-censor the material or take action against its producers if they breach local codes of practice. However, we consider it improbable that satellite television facilities would be used to broadcast offensive material. A few satellite programme s have recently been recorded and scrutinised and they present no problems. In any event their reception by a small minority cannot pose social problems of territory-wide significance.
Administration's Conclusions
23
The proposal to exempt from licensing the use of TVRO dishes to receive satellite television signals intended for general reception, and the limited distribution of such signals, would regularise the current situation wherein some individuals and organisations are using such equipment without licences and in contravention of CWHK's exclusive right to operate all external television and voice transmission services to and from Hong Kong. It would also remove control and licensing obligations that are increasingly unworkable.
24
Removing CWHK's exclusive right to receive satellite television signals, which is only one element of CWHK's rights over the reception and transmission of television and voice programming, would not only remove an obstacle to allowing the unlicensed reception of satellite television signals intended for general reception, but would also give broadcasters the option of installing their own satellite television reception equipment under licence instead of retaining CWHK's services. It would also allow competition in the area of third party satellite television reception. The resultant reduction in CWHK revenue would not be significant and the impact on its operation negligible.
Financial and Staffing Implications
25
If the
CWHK currently pays Government a royalty of 9% of gross revenue from its exclusive services. recommendation in paragraph 3(c) is approved, CWHK will ΠΟ longer have to pay a royalty on revenue from the reception of
CONFIDENTIAL