XN000022-1978-11-14 — Page 2

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TUESDAY, NOVEMBER 14, 1978

CALL FOR GREATER CO-OPERATION AMONG TV STATIONS

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THE TELEVISION ADVISORY BOARD HAS AGAIN CALLED FOR GREATER CO-OPERATION AMONG HONG KONG'S TELEVISION STATIONS AS A MEANS TO COMBAT SPIRALLING OPERATIONAL COSTS IN THE INDUSTRY.

THE TELEVISION AUTHORITY AND HIS STAFF WOULD BE HAPPY TO FOLLOW UP AND ASSIST IN ANY INITIATIVES IN THIS DIRECTION FROM THE TELEVISION STATIONS, THE BOARD STATES IN ITS PROGRESS REPORT FOR THE PERIOD JANUARY 1977 TO JUNE 1978.

+WE APPRECIATE THAT SUCH CO-OPERATION WOULD, INITIALLY AT LEAST, INVOLVE THE SUBORDINATION OF SOME OF THE STATIONS'

INDIVIDUAL AIMS AND AMBITIONS TO A COMMON CAUSE, BUT AS THAT COMMON CAUSE COULD ULTIMATELY BE IN THE INTERESTS OF THE VIEWING PUBLIC, WE SUGGEST THAT SUCH CO-OPERATIVE APPROACH IS AT LEAST WORTHY OF CONSIDERATION - ALTHOUGH WE ARE IN NO DOUBT OF THE REAL AND FORMIDABLE DIFFICULTIES INVOLVED, IT SAYS.

THE BOARD NOTES WITH CONCERN THAT, DURING THE PERIOD UNDER REVIEW, SPIRALLING OPERATIONAL COSTS OF THE STATIONS HAD OUTSTRIPPED THE INCREASE IN TOTAL ADVERTISING REVENUES TO THE POINT WHERE OVERALL, THE TELEVISION INDUSTRY HAD FOUND ITSELF

IN A NET LOSS SITUATION.

THE BOARD HAD HOPED THAT THE LICENCEES BY WORKING TOGETHER IN CERTAIN LONG-TERM ASPECTS OF THEIR PLANNING MIGHT MANAGE TO OVERCOME THIS PROBLEM.

+WE NOW REPORT WITH REGRET THAT NOT ONLY HAS THERE BEEN NO IMPROVEMENT IN THE SITUATION, BUT THE GAP BETWEEN INCOME AND EXPENDITURE HAS CONTINUED TO WIDEN AT AN ALARMING RATE AND THE OVERALL FINANCIAL DEFICIT IN THE INDUSTRY IS NOW VERY LARGE INDEED.+

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IT ADDS +EVEN MORE DISTURBINGLY, WE CAN PRESENTLY SEE NO GROUNDS FOR BELIEVING THERE WILL BE ANY IMPROVEMENT IN THIS SITUATION IN THE IMMEDIATE FUTURE.

THE BOARD IS CONVINCED THAT LOCAL PRODUCTION COST FACTORS WERE MAINLY RESPONSIBLE FOR THE UNTOWARD UPWARD SPIRALLING OF COSTS.

IT OBSERVES THAT TELEVISION IS CLEARLY AN EXPENSIVE OPERATION, AND IN HONG KONG THIS COSTLINESS IS AGGRAVATED BY THE FACT THAT, UNLIKE OTHER PLACES WHERE NETWORKS INCLUDE MANY STATIONS, ALL STATIONS IN HONG KONG MUST THEMSELVES COMPLETELY ABSORB THE TOTAL COST OF ANY PROGRAMMES THEY PRODUCE INSTEAD OF BEING ABLE TO SHARE THE BURDEN AMONGST AFFILIATED STATIONS.

/+THIS IS