3.
Results of pay TV review published for public consultation
The Government is proposing to offer two Video on Demand (VOD) programme service licences for application later this year, but no further pay TV licences will be issued for the time being.
A further review will be conducted in 1998 to consider whether any new pay TV or programme service licences should be issued and what adjustments should be made to the regulatory regime for licensees under the Television Ordinance in the light of market changes and technological advances.
The proposals were made following examination of an economic analysis of impact upon the television market of new services commissioned by the Recreation and Culture Branch late last year.
The review which followed looked at how the pay TV market could be deregulated in a structured and orderly manner, with minimal impact on both existing and potential broadcasters.
The Secretary for Recreation and Culture, Mr Chau Tak-hay, told a press conference this (Thursday) afternoon that the economic analysis had shown that the local pay TV and VOD programme service market was not ready to accommodate many new licensees.
"If the pay TV market was fully deregulated, the financial position of the existing pay TV licensee could deteriorate significantly," he said, adding that even. partial deregulation could threaten its economic viability.
But the Government did not think it would be in Hong Kong's interests to attempt to suppress the commercial exploitation of VOD technology, which would allow more choice to consumers, and help to develop the Information Superhighway in Hong Kong.
"Neither do we think that it would be reasonable to allow a single VOD operator to monopolise the market. Consumers would benefit from competition, both in terms of competitive pricing, and a wider choice of services," he said.
"We therefore propose that while no more pay TV licence should be issued until after a review in 1998, two VOD programme service licences should be offered later this year, subject to the approval of the Legislative Council of the necessary amendments.