XN000022-1992-07-02 — Page 5

THURSDAY, JULY 2, 1992

A REVIEW WHETHER FURTHER

FOR.

MR

WOULD BE CARRIED OUT IN OCTOBER 1994 ΤΟ CONSIDER RELAXATION ON THE REMAINING TWO CHANNELS IS CALLED

SO ADDED THAT THIS ARRANGEMENT WOULD REPLACE THE EXISTING CONDITION IN STAR'S LICENCE WHICH PROVIDED FOR THE BROADCAST OF CANTONESE PROGRAMMES PREVIOUSLY BROADCAST IN HONG KONG AFTER OCTOBER 1993.

"AS A RESULT OF THE LIBERALISATION OF STAR'S LICENSING CONDITIONS, IT IS EXPECTED THAT A HIGHER UPLINK LICENCE FEE WILL BE APPLIED ON THE LICENSEE, HE SAID.

THESE DECISIONS TAKEN BY THE EXECUTIVE COUNCIL WILL BRING

CHANGES SIGNIFICANT

ΤΟ THE BROADCASTING ENVIRONMENT AND WILL OF DEFINITELY HAVE AN IMPACT ON THE TERRESTRIAL TV OPERATORS IN TERMS AUDIENCE AND ADVERTISING REVENUE.

ON GROUNDS OF EQUITY, THE FOLLOWING MEASURES WILL BE INTRODUCED TO ALLEVIATE THE IMPACT ON TVB AND ATV:

*

A

MORATORIUM ON ADVERTISING WILL BE IMPOSED ON THE SUBSCRIPTION TV LICENSEE DURING HIS THREE-YEAR EXCLUSIVITY PERIOD:

THERE WILL BE A REDUCTION IN TVB'S AND ATV'S ROYALTY PAYMENT BY ABOUT 2 PER CENT WITH EFFECT FROM OCTOBER 1993, SUBJECT IN TO A REVIEW ONE YEAR LATER TO RE-ASSESS ROYALTY PAYMENT THE LIGHT OF THE ECONOMIC IMPACT OF THE CHANGED OPERATING ENVIRONMENT ON THE TWO TERRESTRIAL TV OPERATORS; AND

RECOMMENDATIONS OF THE BROADCASTING AUTHORITY (BA) TO RELAX SOME OF THE EXISTING RESTRICTIONS IN TVB'S AND ATV'S CURRENT REGULATORY FRAMEWORK, THAT IS, PROGRAMMING, ADVERTISING AND OWNERSHIP RESTRICTIONS WILL BE ACCEPTED.

THESE INCLUDE RESTRICTIONS ON PROPERTY AND FINANCIAL ADVERTISING, AS WELL AS THE BROADCAST OF NON-ENGLISH PROGRAMMES ON THE ENGLISH TV CHANNELS.

PROPOSALS

FROM OF THE

MR SO SAID THE ADMINISTRATION WOULD INVITE PARTIES INTERESTED IN PROVIDING SUBSCRIPTION TV ON THE BASIS LICENSING FRAMEWORK APPROVED BY EXCO.

AND MAJOR

MAKE

FORMAL INVITATION WILL BE PUBLISHED IN THE GAZETTE LOCAL NEWSPAPERS SOMETIME IN JULY. THE BA WILL BE ASKED UNDER SECTION 9(1)(D) OF THE BA ORDINANCE TO CONSIDER THE BIDS AND THEREAFTER RECOMMENDATIONS

THE EXECUTIVE

THE COUNCIL FOR SUBSCRIPTION TV LICENCE, MR SO SAID.

ΤΟ

GRANTING

OF A

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