TNAG-1986-FCO40-2819-Presentation-of-UK-policy-on-Hong-Kong-to-the-media-1989 — Page 127

From:

Figure I-4

Subscriber and Non-Subscriber Revenues

1996 Revenues

(% of Total)

HKCC

HCV

Subscribers

88%

75%

Advertising and Programme Sponsorship

9%

17%

Programme Licensing

7%

Other

3%

1%

2.

Programming

We reviewed programming largely from the perspective of its ability to drive. the financial viability of the projects, particularly in attracting subscribers and generating revenues. We concentrated on the proposals for the crucial early years. We would expect both bidders to adjust their later plans based on experience.

HKCC and HCV carried out considerable market research on interest levels for different cable TV offerings. WTS referred to data on viewership of broadcast TV programmes but did not report on original market research for the cable TV projects. In general, the market research indicates that the Hong Kong market has a clear preference for Cantonese programmes. Dubbed or sub-titled overseas products are less popular. Overall, it is our view that HCV's programming line-up is more attractive than HKCC's in the early years; it will appeal more to the Hong Kong subscribers and in this respect will provide a greater benefit. It therefore is also more likely to attain for the system the

projected penetration.

The relative attractiveness of the programming packages for the main bidders is described in Figure I-5. The packages are compared in terms of local content, variety, the concepts and degree of innovativeness involved and the willingness to compete with the existing wireless stations.

Arthur D Little

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