a. What form of communication should be allowed in sponsorship packages? For RTHKC to fully exploit the potential for sponsorships will require relaxation of the current regulations. Based on U.S. public broadcasting experience, an attractive package for TV sponsors would allow use of company logos and typefaces, voice-overs, and product brand names in the programme credits. Easing the rules in this way should have minimal impact on the advertising revenues of commercial television broadcasters and only a small impact on those of commercial radio broadcasters; without these changes, RTHKC's ability to attract sponsors will be severely limited.
b. Should public fund-raising be allowed? The U.S. Public Broadcasting System, for example, derives approximately 20 percent of its revenue through fund-
raising. We believe that the fund-raising option should be tested.
c. Should RTHKC be able to retain all revenues generated through commercial
initiatives? Requiring RTHKC to return commercial revenues in excess of its budgeted target to Government would dampen its incentive to actively pursue marketing opportunities. One alternative would be to set aside the excess revenues in a development fund.
FOCUSED
MANAGEMENT AGENDA
4.5 The Board and senior management of RTHKC will need to maintain the momentum of change. Broadly, their task during the first year or two of the new corporation will be to
ensure that the structure and other organisational recommendations outlined here are effectively put in place, and that RTHKC establishes both a new operating style and a strong sense of direction. Several specific initiatives should be taken to reinforce change at
RTHKC:
a. Ensure that a thorough review of TV and Radio broadcasting strategies is
completed, and steps are taken to refocus both divisions if necessary. Corporatisation and parallel changes in the Hong Kong broadcasting
environment call for a fresh look at options on the thrust of programming and
resource allocation.
McKinsey & Company, Inc.