WITHIN the next few mths Govern- ment
announce
its txew television policy.
The issue to be settled is how
channels the many Colony shall have in the future wireless or wired.
At present there is licence for a wireless station and one for wired television.
one
I understand it was the intention of Government to announce its decision in December last year. Why it was held up I do not pretend to know although I can make a shrewd guess.
Perhaps it was because originally a second wireless licence was to be negotiated by private treaty. There may have been second thoughts on this procedure.
If there are to be additional wireless licences they should be awarded on the basis of tenders and to the companies which, in the opinion of Government, will give the best service to the community.
This would be equitable process. This was the formula when the first wireless licence was issued.
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A number of companies tendere and the award was finally ade to HK-TVB.
Ho ver, the delay may have i en caused by the new Governor, Sir Murray MacLehose, wishing to give this important matter his deep peronal consideration and
accept out of hand a cut and-dried policy formulated during the governorship of his predecessor.
This we know has happened with other projects.
As new policies are to operate during the tenure of office of Sir Murray, it is both natural and correct that final decisions should be made by him because in the ultimate he must accept the responsibility for the success or failures of such policies.
As Sir Murray has been in office for only a short time and amid his many tasks. it would be reasonable that he should take time to consider a question of policy such as this. which involves many complexities.
An immediate announcement on the future of television in the Colony is not, strictly
necessary.
other
speaking.
words.
In Government 15 not being called upon to make a panic decision because of a legal
situation.
Government must concede that future television policy is the vital concern of every ре
;son in the community, for television
exerts a powerful influence on out way of thinking. Its sublimal effect is.
perhaps, incalculable.
A 5 it mediom
of
entertainment, information and education it reaches a vast number of persons of all ages.
At present in the Colony
there
are about $70,000 wireless television sets, with an increasing proportion of colour sets.
Sales of colour sets have increased by 50 per cent during the past six months. Of the 9,000 new sets purchased each month. 25 per cent are colour.
are
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In addition there 120,000 wired subscriber sets. of which 80,000 have conversion for receiving HK- TVB wireless programmes.
This means that at peak hours on any evening more than a million people are viewing.
It is estimated that during the live satellite transmissions of President Nixon's visit to Peking there were probably 2 million viewers half the Colony's population.
Increasing popularity of television has come about for three reasons
a more affluent society. lower cost of small black-and-white
sets
and an improvement in the quality of programmes, especially those locally produced.
Critics of Hongkong's television programmes ignore that the top programmes of the world are being shown on our screens.
They include David Frost. Whicker's World London Soccer, Family Affair. The Avengers. World Premier. Elizabeth R., and Jason King. Because Hongkong is Crown Colony and governed by a non-elected Legislative Council, the viewer will have no say in Government's final policy.
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It is unfortunate that the voice of the people on this issue cannot be heard.
Only in the last few weeks has the problem been ventilated, although a report by the Television Advisory Board was published at the end of last year.
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But I am not sure that the facts of the situation are widely understood.
When 1
say that immediate policy decision is not necessary. Government does, however, have a time limit.
This is determined by two factors:
1) the exclusivity phase of HK TVB's licence expires on November 19 this year: and,
2) the 15 year wired service licence of RTV
expires in April next year.
On a long term basis. Government is opposed (and rightly) to television being the monopoly of one commercial company.
was
That there should be competition
envisaged and provided for when HK TVB was granted its wireless heence four years ago.
The exclusive period for wireless transmission was for five years but the licence can be extended for a further two periods of five years.
It is assumed that RTV will not be interested in operating solely a wired service after their existing licence expires next year.
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The future WORLD
of
television
... and the press
This is because a wired service cannot attract the advertising that is open to a wireless station. There are geographical limitations for wired service programmes.
As Government wish that there be more than two channels - one Chinese and one English the decision which now has to be reached is: How many wireless licences shall be awarded?
This is the nub of the problem. And it is in this area that there are divergent views between the media and
factors in determining how many wireless stations shall be allowed to operate.
These questions cannot be divorced for the quality of a station's programmes is dependent on its revenue.
Government in reaching a decision is under an obligation to put first the interests of the viewers taking into account the composition of the community.
But whatever the decision on the number of wireless licences to be issued, the operating companies must be in a position to make a profit.
If their potential operating revenue is too low then the quality of the programmes must suffer.
Government.
Although Radio Hongkong has a television producing unit, there is no reason to believe that in the foreseeable future there will be Government -controlled wireless transmission station
Radio
merely Hongkong will continue to produce short information documentaries.
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It will also handle such Philip programmes as Mr. Haddon Cave's broadcast after his Budget speech in the Legislative Council.
This
was an excellent innovation by the Financial Secretary and the type of Government public relations exercise that I have long advocated.
In Hongkong, television has always been a commercial industry, which, in certain respects, may be unfortunate if viewed in the concept of the excellence of the BBC's programmes over
many years.
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Yet, the BBC benefited enormously from competition when the Independent Television Authority was established.
Wireless television of course, is solely depender" on advertising for its income while wired television der ves revenue from the hire of sets.
Further, a television station involves a tremendous capital outlay with heavy recurent costs.
I would assume that HK- TVB has only just recovered its initial losses.
RIV hus had a w.red licence for 14 years and just long ago have amortised its
investment.
The twin problems of economic viability and programme quality are the
It is argued that anyone wishing to risk capital should be permitted to operate a wireless television station on payment of a
licence fee.
This would make television comparable to the publication of newspapers and magazines.
This, in
my submission, would be a dangerous policy. if only on political grounds.
Television is a powerful propaganda media.
Theoretically, the viewer would benefit if there were more stations.
In practice this would not work out.
It would inevitably lead to a worsening in the standard of programmes because of the cut-throat competition for advertising.
This has happened in some neighbouring Asian countries.
As pointed out in the report of the Television Advisory Board: "Television is an instrument of significant importance in the life of the Colony. Regulations may eliminate abuses; only the goodwill and intent of those who actually operate the station and plan the programmes can ensure that television will be used constructively for the welfare of the community.”
Thit is a case for limiting the number of stations for a free-for-all policy the viewer loging out in the ruthless competition.
Government when it announces its policy will. I. assume, invite tenders after the exclusivity phase of HK TVB's wireless licence ends in
Norman Barrymaine
November for а second wireless station to come int.) operation after the expiration of RTV's wired monopoly in April next year.
This will mean two wireless stations by the summer of next year.
But there is talk of a third wireless licence being granted, to operate only a Chinese channel.
If this becomes policy t would be unfair on the other two stations which will be under legal obligation [0 maintain English language channels.
They are not economic propositions.
It is the Chinese channels with the mass viewing audience which produce worthwhile revenue.
The issue is how
mary stations the Colony Can afford if they are to be commercial without lowering programme quality.
The determining factor is the amount of advertising money available.
There are arguments as to what is the figure. Government perhaps being more optimistic than industry.
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The figure for 1971 for all forms of advertising newspapers, magazines. television. radio, hoardings. neon signs and cinemas - was about $220 million. It will be higher this year.
Government, working on a different set of figures in planning policy, suggest that total expenditure advertising in the Colony will be $400 million in 1973.
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This figure cannot be realised in only a year's time.
Further, it would appear. the total amount of advertising money available s the figure being used by Government to determine the number of stations that can be economically operated.
It is stated that at present television in Hongkong attracts only 16 per cent of the advertising cake, whereas the figure is 30 per cent in Japan, England and Taiwan.
In the United States it is 43 per cent.
а specious
This is argument.
Only a percentage of gross advertising expenditure is available for television.
This is the money spent by business on television, radio, newspapers and magazines.
If you omit all outdoor advertising the gross figure for 1971
was about $200 million from which discounts must be deducted.
This is the estimate of an independent market research. group.
On the basis of past experience. advertising expenditure increases at the rate of a little less than 10 per cent a year.
Therefore, not until the end of next year will two wireless networks be economically viable.
Advertising available for television this year is estimated at $60 million and $70 million next year.
From these figures must be deducted 25 per
cent for royalties and commissions.
Mr Andrew Eu. the Managing Director of HK TVB, in a recent speech to the Rotary Club of Hongkong. contended that two wireless stations would have to earn $80 million annually to make them economically viable.
Examining the question of a third station (the Colony then having SIX channels! Government must not only consider the economic factors but also the need and validity of three stations.
But if Government msists on all six TV channels being utilised, then consideration should be given Government controlled station which
to
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Government when it grants new wireless licences will restrict
all advertising on stations up to an average of 10 minutes an hour although the 10 per cent each day of transmission time will remam.
In discussing media, television should not be the sole consideration. There must be a healthy Press.
are
Newspapers and magazines also commercial enterprises. surviving оп advertising revenue as well as sales.
In fact, it is the only industry which sells its product below the cost of production.
It is entitled to thrive. Also. it is in the interests of a free society that it does.
Mr
Robin Hutcheon. Editor of the South China Morning Post, also In H speech to Rotary, pointed out the high costs of newspaper production and the impact of tulevision
media advertising revenue.
It has caused a widespread shake-up in the industry. many famous newspapers and magazines having been forced to close down, not because they had fallen behind the times in techniques but because of the sheer cost of putung out an expensive, high quality product.
This has not yet happened in Hongkong, which has 76 daily newspapers, of which
four only
English
language.
would could
incorporate Radio Hongkong's TV production unit and the new Government educational television set-up.
Such a station might operate for only a limited number of hours a day and not carry advertising.
It would be financed by Government money out of the considerable royalties received from the commercial stations.
Government's new policy will rectify an anomoly at present existing in the amount of programme time legally available for advertising.
HK TVB is restricted to not more than 10 per cent of their total transmission time with a further restriction of not more than 7 minutes in any hour.
RTV while restricted to 10 per cent of transmission time is not restricted to an hourly figure.
It often inserts 17 or 18 minutes advertising in an hour at prime viewing time.
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It may be argued that of the Chinese many publications are "mosquit«>** newspapers and little harm be done 10 the community if they folded.
However, Government is not entitled to enunciate a television policy which threatens the survival of newspapers.
In fact, it would be harming itself if it did.
Only the newspaper and the magazine can examine problems in depth and be available to the citizen at any time.
Without damaging the newspaper industry, it is open to argument that Hongkong can economically sustain with high quality programmes two commercial wireless stations for the next two years or even three.
Certainly there is no room for three commercial wireless. stations.
All these factors. I am confident, are being considered by the Governor and those advising him on policy.
World copyright Norman Barrymaine 1972.
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