TNAG-1077-FCO40-1327-Broadcasting-in-Hong-Kong-proposed-BBC-relay-station-1981 — Page 4

XCC(81)126

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Although a new radio station might generate extra advertising revenue on its own, there must be the apprehension that if the stations pursue competitive strategies, as do their television counterparts, operational costs will rise and continue to rise, resulting in cost growth outstripping revenue growth for the industry.

Commercial radio broadcasting as

a competitor to television

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The introduction of an extra potential advertising competitor, in the form of a commercial sound broadcasting station, albeit not a competitor in the strict sense of another television station, may have undesirable repercussions. Although this argument may be more emotional than financial, the television industry is still in a state of unbalanced commercial competition; should one of the television stations prove ultimately to be insolvent, the public (and the station) might perceive an extra commercial sound broadcasting station to have been one of the contributing factors,

C

The radio audience

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An extract of two comparable audience surveys conducted for Commercial Radio in 1979 and Radio Television Hong Kong in 1981 by Survey Research Hong Kong Limited is at Appendix C. These surveys show a marked increase in the number of radio listeners from 1979 to 1981, particularly in the 25-34 age group. However as stated in paragraph 10 there is no real evidence at present to show whether the listening public is satisfied with the range and adequacy of Hong Kong's present radio services or whether it would prefer more. It should be possible to set up a survey - independent of the two radio stations that would shed some light on this area, without merely obtaining the predictable response that the public would prefer the maximum choice at whatever cost to the industry.

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There are now very few homes which do not have a radio receiver, and most have more than one. Cheap transistor radios and the more expensive portable stereo sets equipped with headphones are ubiquitous pointing clearly to the popularity of the medium. On the other hand, television remains unquestionably Hong Kong's most popular entertainment medium, although its novelty has worn off. This factor, coupled with 24-hour radio service and more sophisticated FM broadcasts, may have altered to some degree the listening pattern of the Hong Kong public.

G.S. 166

Programmes

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The success of a commercial sound radio service depends on its attraction of audience which commends itself to the advertisers upon whom the station relies to be financially viable. Hence, the programming policy of a commercial station has to appeal to potential advertisers. At present, RTHK is able to provide on some channels a range of programmes that have little or no commercial value, for instance minority programmes, serious music and

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