TNAG-0350-FCO40-386-Future-of-broadcasting-in-Hong-Kong-1972 — Page 56

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as the transmitting agency for all

broadcasters.

Further enquiries of Government officers showed that

the mere consideration of the ITA suggestion, and

implementation of advice given, might take another two

thus making January 1975 a more realistic

years

on-air date for the next broadcaster.

And

10. Why is this delay such a desperately serious set-back

for Rediffusion? Because, following the effective

denial of our right to relay TVB's programmes on our

networks and our consequent inability to offer

subscribers, as originally intended, a complete cable

service carrying four commercial programmes plus any

Government programmes, the public has had to choose between two-programme "free" television off-air (TVB ) or two-programme cable television, for which a subscription had to be charged (Rediffusion). Not

unnaturally, the majority chose the free service.

although, by sustaining a very high standard of programming, we have so far succeeded in retaining more

than 100,000 subscribers to our service, we are now

competing for advertising with nearly 600,000 off-air

sets watching TVB and unable to receive Rediffusion's

programmes. Commercial revenue, with which to sustain these programmes, is now beginning to fall off drastically. Probably, big advertisers have only stayed with

Rediffusion in a substantial way in anticipation of its

switching to wireless broadcasting, and so gaining

access to the great majority of sets in the homes of

the public, at an early date.

11.

The Government has told Rediffusion that its cable

licence will be extended beyond next April until the

second wireless television station is on-air. It is

calculated that if it is necessary to go on operating

.../6...