TNAG-2277-FCO40-3276-Hong-Kong-and-the-media-1991 — Page 38

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YOUR TELNO 227: LAUNCH OF BBC WORLD SERVICE TELEVISION (BBC WSTV).

1. IT IS EARLY DAYS, BUT THE GENERAL PROSPECTS FOR THIS VENTURE IN HONG KONG ARE ENCOURAGING. HUTCHVISION'S STARTV, WHICH CARRIED BBC WSTV, HAVE BEEN RUNNING A MASSIVE LOCAL ADVERTISING CAMPAIGN IN TANDUM WITH ANOTHER HUTCHESON COMPANY, FORTRESS, WHO SUPPLY AND INSTALL RECEIVING EQUIPMENT. STAR ESTIMATE THAT 100,000 HOUSEHOLDS IN HONG KONG CURRENTLY RECEIVE THEIR PROGRAMMES, AND 500,000 IN ASIA. THEIR PROJECTION FOR ASIA BY THE END OF 1992 IS 2 MILLION, INCLUDING HONG KONG. THE 24 HOUR BBC WSTV NEWS CHANNEL WILL BE LAUNCHED ON 15 NOVEMBER. IT IS CURRENTLY BROADCAST FOR HALF AN HOUR ON STAR'S PREVIEW CHANNEL AT 5, 6 AND 7 PM.

2. STAR CONTINUE TO WARN HOWEVER, THAT HONG KONG LAGS BEHIND OTHER ASIAN COUNTRIES BECAUSE OF THE HKG'S THREE YEAR BAN ON STAR BROADCASTING IN CANTONESE. THEY CLAIM THAT OF THE 36 COUNTRIES ABLE TO PICK UP THE SIGNAL, HONG KONG LIES SEVENTH, DESPITE ITS HIGH LEVEL OF DISPOSABLE INCOME AND REPUTATION FOR BEING ADDICTED TO TELEVISION.

3. THE TWO DOMESTIC TELEVISION STATIONS (TVB AND ATV) ARE REQUIRED BY THE TERMS OF THEIR LICENCE TO RUN ENGLISH LANGUAGE CHANNELS, ON WHICH THEY LOSE MONEY. THE MANAGEMENT BELIEVES SUCH A REQUIREMENT IS UNNECESSARY GIVEN THE GROWING AVAILABILITY OF MULTICHANNEL (AND AT SOME POINT MULTILINGUAL) SATELLITE TELEVISION AS CURRENTLY PROVIDED BY STAR. ANY FUTURE REDUCTION IN THEIR ENGLISH SERVICES WOULD OBVIOUSLY BE BENEFICIAL TO STAR.

4. WE WILL CONTINUE TO MONITOR THE PROGRESS OF BBC WSTV AND REPORT. THERE IS NO REQUIREMENT AT PRESENT FOR FURTHER SUPPORT, BUT GIVEN THE POSSIBILITY OF A SHAKEUP HERE IN BROADCASTING REGULATIONS, THAT MIGHT CHANGE.

HEAP