The Communications Authority relaxes programmes broadcast requirements by free TV operators

The Communications Authority has temporarily waived the requirement relating to several types of programmes broadcast by domestic free television programme service licensees being wholly of Hong Kong origin after TVB made the application on 9 March.

In a statement, the Communications Authority said the decision to temporarily waive, for a period of three months from 25 March 2022 to 24 June 2022, the requirement relating to documentary programmes, current affairs programmes, arts and culture programmes, and the first-run requirement relating to positive programmes was due to the continuing impact of the COVID-19 pandemic.

According to the Communications Authority, a licensee is required to broadcast a minimum number of hours of positive programmes, including documentary programmes, current affairs programmes, programmes for children, young persons and senior citizens as well as arts and culture programmes daily or /weekly. All of the above programme requirements shall be fulfilled by first-run programmes unless otherwise approved by the Communications Authority.

In spite of the waiver, the broadcasting hours of the respective positive programmes to be provided by a licensee will remain unchanged and the frequency of repeated programmes for fulfilling the programme requirements will be limited to not more than once in any week.

The Communications Authority said it received an application from TVB on 9 March for waiving the "wholly of Hong Kong origin" and the "first-run" requirements relating to positive programmes due to the disruptions to TV programme production caused by the continuing impact of the COVID-19 pandemic. The authority said in view of the latest pandemic situation and the operational difficulties faced by free TV licensees, the Communications Authority decided to approve the application and extend the waiver to the other two free TV licensees, including HK Television Entertainment Company Limited and Fantastic Television Limited.

Free TV licensees have been facing a challenging business environment since the onset of the pandemic, but their financial performances are different from each other. In addition to the reduced capacity for producing programmes, TVB also recorded a loss of up to about HK$647 million in FY 2021 due to the increasing loss of eCommerce and Hong Kong broadcast business, in addition to the reduced income of OTT business.

The company announced its official annual results on Wednesday. It lost HK$647 million in the financial year ended on 31 December 2021, compared to the loss of HK$281 million in 2020. One of the highlights of its loss was the negative EBITDA of HK$314 million due to the increase in its operating costs for the year, and the absence of any COVID-related wage subsidy income from the Hong Kong government. In 2020, the company's EDITDA was HK$74 million.

On the other hand, PCCW, parent company of HK Television Entertainment Company that runs ViuTV in Hong Kong, recorded a net profit of HK$1.04 billion in 2021 after a loss of HK$1.02 billion from the prior year, as many of its businesses enjoyed significant increase, including its free TV division and related business such as artiste management, event business, and increased advertising revenue. PCCW's free TV and related business revenue grew by 152% to HK$800 million last year with advertising revenue more than doubling to HK$615 million. The company said the positive response was due to its relevant and appealing content, including scripted dramas such as Ink At Tai Ping and reality shows led by the King Maker series.

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