Date
24 November 2017
HKTV chairman Ricky Wong Wai-kay said the group is reviewing the situation and may resume production. Photo: HKEJ
HKTV chairman Ricky Wong Wai-kay said the group is reviewing the situation and may resume production. Photo: HKEJ

HKTV sees faint light at the end of a long tunnel

After trying for more than five years to secure a television license in Hong Kong with no success, HKTV (01137.HK) chose to broadcast its production on the internet.

The group booked a loss of HK$237 million (US$30.5 million) for the 16 months ended December 2014, but it is now starting to see a faint light at the end of the tunnel.

It has generated HK$20 million (US$2.6 million) in revenue from copyright sales and advertisements in the four months to December.

According to viewer feedback, the drama programs produced by HKTV are above average in quality. Four months after its official launch last November, HKTV now boasts an audience of about a million.

HKTV suspended production in March last year when its license application hit a wall. But the group said Thursday it is now reviewing the situation and may resume production.

This implies that construction of the company’s multimedia production and distribution center in Tseung Kwan O Industrial Estate may resume.

The group is also making headway in its other major business, e-commerce. So far some 1.13 million users have visited its online shopping platform—HKTV Mall. It only opened in February so it is still early days to say whether the business is a success.

Meanwhile, ATV’s major shareholder Wang Zheng told mainland media that the broadcaster may have to shut down by the end of this month, as potential white knights refused to inject funds into the cash-strapped company.

But even if ATV is on the verge of closing down, HKTV’s chance of getting a broadcasting license remains slim. Still, the news is regarded as somewhat positive for HKTV.

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CG

EJ Insight writer

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