XN000022-1996-11-20 — Page 6

- 5-

"There is no doubt that entering the Chinese market is hard work but you can't afford to ignore one of the world's largest and fastest growing economies.

"And from next year, those of you based in Hong Kong won't need to hover on China's doorstep. You will have your foot in the door already," Mr Chau told delegates to the conference.

The Secretary noted that Hong Kong-based satellite and cable broadcasters, including Star TV, CNBC Asia and TNT/Cartoon Network, had been quick to launch new channels customized to local tastes, or stepped up dubbing and subtitling of their programmes in Chinese and other Asian languages during the past 12 months.

Mr Chau also told the conference that next year would see the launch of new Video on Demand programme services which would revolutionize the television industry.

He noted that there had been considerable debate about whether VOD was really television and that some had argued that it should be treated like a video rental

store.

But Mr Chau pointed out that VOD subscribers who wished to see programmes would call them up with a remote control while sitting at home, just as they might order a pay-per-view movie.

"So there is no real reason to treat it any differently from any other television service. Which is precisely why we have decided to regulate it under the Television Ordinance," he added.

End

New royalty scale and licence fees for ATV and TVB

The Governor in Council has approved proposals to slash the advertising royalties paid by the commercial television broadcasters.

"The advertising royalties paid by ATV and TVB will be reduced by a combined total of about $65 million," a spokesman for the Broadcasting, Culture and Sport Branch said today (Wednesday).