Broadcasting Authority Annual Report 2007-2008

5. Broadcasting Revenues and Workforce

5.1 Advertising Revenue

5.2 Subscription Revenue

According to published figures, HKCTV's turnover (including mainly subscription revenue and also some advertising revenue) dropped from $1.9 billion in 2006 to $1.6 billion in 2007 (Figure 16).

Figure 16:

Turnover of Pay TV Business of i-Cable Communications Limited

ZOOM

According to the annual report of PCCW Limited (PCCW), the holding company of PCCW Media, the turnover for its television and content segment in 2007 was $1.7 billion, representing an increase of 70% over the previous year. The increase is mainly attributable to subscriber and average revenue per unit growth.

The subscription revenue of TVB Pay Vision is not publicly available.

The period under review saw vigorous competition in the domestic pay television market. The licensees all offered promotional packages at reduced subscription fees as shown in Figure 17.

Figure 17:

Packages Offered by the Domestic Pay Television Programme Service Licensees

Licensees

Basic Package

Promotional Package

HKCTV

Standard Monthly Fee:
$369 for 80 basic channels

-	A wide variety of service packages ranging from $50 to $299 per month.

TVB Pay Vision

Standard Monthly Fee:
$198

-	Basic package of 37 channels bundled with the broadband service provided by HGC at $248 per month
-	Special package at $138 per month (12-month contract) transmitted on PCCW Media's platform (with 18 selected channels)

PCCW Media

Offering pay-per-channel tariff from $10- $62 per channel per month

-	Mega Sports Pack offering premium sports channels ($218/12-month contract)
-	A-la-carte channel package from $15 to $168

(Sources: Licensees' websites)