Hong Kong’s traditional TV industry is feeling growing pressure from internet-based over-the-top (OTT) services.
Television Broadcasts (TVB), the city’s largest broadcaster, has launched TVB Anywhere OTT service to tap the international market. PCCW-backed Viu has also introduced a similar service for overseas markets.
Even Asia Television (ATV), which shut down was later acquired, is looking to launch OTT services to tap into mainland China and other markets.
OTT service charges low subscription fees and has fewer ads, thus drawing a lot of customers away from traditional TV stations.
In the United States, millions of customers canceled paid TV services last year and switched to OTT platforms.
In December last year, the US Federal Communications Commission voted to reverse rules introduced in 2015 that barred internet service providers from blocking or throttling traffic or offering paid fast lanes.
That means OTT service providers may need to pay fees to internet service providers to ensure fast transmission.
I believe internet television has become an irreversible trend, with giants like Google also jumping on the bandwagon. Google launched its YouTube TV in the US market last year.
The full article appeared in the Hong Kong Economic Journal on Jan 15
Translation by Julie Zhu
[Chinese version 中文版]
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