CONFIDENTIAL
XCC(93)148
Satellite Television Broadcasting from Hong Kong
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Asia's broadcasting markets are opening up. New demands for increased and improved broadcasting services are emerging. International media and entertainment companies are eager to expand their businesses into Asia and access to the region's increasingly affluent consumers. Satellite broadcasting to the region is regarded as a cost-effective and efficient method of delivery of television programmes. Increased satellite capacity has allowed for expanded opportunities to export programmes. By 1995, more than ten new satellites will have been launched in the Asia- Pacific region, making available more than 250 transponders, from which more than 500 television channels can be made available if compression technology is used.
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Interest has been expressed by a number of international broadcasters in uplinking their programmes from Hong Kong in the near future. Hong Kong's development as a base for satellite television broadcasting would reinforce our role as a regional hub in the financial, business, media and telecommunications fields. It would help promote Hong Kong's image as an international communications centre and render more visible to the outside world its system of laws and freedoms. It could also promote Hong Kong's export of services, thereby stimulating trade and industry. The more tangible benefits would stem from generation of Gross Domestic Product, profits tax payable by broadcasters, and creation of employment opportunities.
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There may be concerns that the proposal to relax the licensing framework may draw more satellite television broadcasters to be based in Hong Kong, thereby adversely affecting the commercial television licensees through loss of audience share and advertising revenues. We appreciate the possible impact on our commercial television licensees, which we plan to address in our review in October 1994 on whether to allow further Cantonese broadcasting on Hutchvision's remaining two free-to-air channels and other satellite broadcasts which are uplinked and freely receivable in Hong Kong. We would also review the royalty rates for TVB and ATV in October 1994 in the light of the impact of subscription television, Cantonese on Hutchvision and other satellite television broadcasts on the advertising revenues of ATV and TVB. The satellite television broadcasting industry is very competitive and the uplinking base can be relocated easily. It is no secret that Singapore wants to become the regional hub for film, broadcasting and telecommunications. It is going all out to attract such
Executive Council
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