24

JUL '91 10:14

FROM BBC WORLD SERVICE TU

.

PAGE.003

Re Cantonese and Subscription there are three areas of concern. These relate to:

a)

limitations Hong Kong

on subscription television in

b)

c)

a)

limitations

Hong Kong

on Cantonese broadcasting in

the need for an amendment to Hutchvision's broadcasting licence to enable them to carry World Service radio on Asiasat.

Subscription Television

Background:

in terms of Hutchvision's licence Hutchvision may not provide a subscription service in Hong Kong although it is permitted to do SO outside the territory.

There is provision in the licence for this constraint to be relaxed from October 1993 or at any time prior to that should the Governor-in-Council think fit. This policy is currrently being reviewed and it is expected that concession will be made in time for early 1992. If Hutchvision is allowed to provide a subscription service by June 15 1992 World Service Television will receive an extra 7% profit share. We also have the right of first refusal under the draft contract to provide the subscription service (which we would aim to do by sub-contracting to Enterprises).

The Argument:

(i)

A$ in Britain, subscription provides a new source of revenue for the industry which will benefit all;

it also permits

more choice of a wider range of programming.

(ii) BBC involvement will ensure that the people of Asia get access to the highest quality programming from the satellite cornerstone argument.

(iii) Hong-Kong

the

together with Singapore and Japan are the only controllable markets in copyright terms. Without Hong Kong it is hard to see how the economics of a subscription channel can make

sense.

a

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