XN000022-1972-06-16 — Page 2

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Friday, June 16, 1972

It was believed, he added, that two channels of English

programmes, which cater to smaller audiences, was the maximum

competition which Hong Kong could support commercially now or in the future, if the licensees were to maintain their economic viability.

The Chinese language programmes, because of the larger audiences, could however support more competition and the committee calculated that by 1975 a third single channel offering Chinese programmes only would be economically viable within the context of

the available revenues from commercial advertising.

Mr. Watt said: "Hong Kong is enjoying a fast rising

standard of living and more and more people are buying television sets. As television continues to expand, manufacturers and promoters must

of necessity increase their advertising budgets if they are not to lose customers to competitors who do use television as a medium for promoting

their products or services."

Restriction On Advertising Time

Speaking of the restriction on advertising time on wireless

television, Mr. Watt said it had been accepted that when two or more

wireless stations are on the air the present restriction of seven

minutes in the hour would be increased to ten minutes, but without

increasing the overall ten per cent standard. This would provide more advertising time at peak viewing hours and should help the effective distribution of advertising revenues between the three stations.

He said it was Government's policy that as television was primarily a medium of entertainment it was preferable to allow commercial interests to provide this entertainment under the close supervision and control of a Television Authority rather than to commit public funds for the establishment of a Government television

station but to use the money in social services and housing.

It was recognised that television, as a means of public information, was of the utmost importance. Hong Kong was unique

in that while it did not have a non-commercial or government

television station it had laid down statutory requirements on television stations to provide air time for public service broadcasts.

/At present....