1.
1.1
Potential Impact of SMATV on
Hong Kong Cable Communications Limited's
Financial Viability
Annex C
Introduction
This Paper sets out our analysis of the likely financial impact of the introduction of unregulated third party SMATV on Hong Kong Cable Communications Ltd. (HKCC). It shows the effect on HKCC's return on investment if SMATV is allowed to be introduced in advance of HKCC's network installation.
The paper is written in two sections :
Section 2.
Section 3.
Describes the potential penetration of SMATV systems of Hong Kong households.
Shows the impact it would have on HKCC's financial results.
2.
2.1
Satellite Programming and likely Market Penetration
Program Demand
In February 1989 we undertook market research to gauge the demand for a 6 channel service consisting of News, Documentaries, Movies, Music, Sports and Children's Programs. This research showed the following preferences.
Table 2.1
News
Documentary
Movies
Music
Sports
Children
Very & Quite Interested
Not at all
Interested
010
85
83
82
60
55
54
Source: HKCC Market Research Study
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February 1989
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