6. Investment in Television Industry

Key investment projects in the television industry in recent years include digitization of the terrestrial broadcasting network, HDTV content and production technology, interactive television services, and regular network upgrades and maintenance that are required to maintain or expand the ever-advancing scope of services. In addition, as the television industry becomes increasingly competitive, the exclusive rights to broadcast premium contents, such as football matches to some operators, have been considered as a major attraction to viewers. 

The two domestic free television programme service licensees, ATV and TVB, have committed $2.4 billion and $7 billion respectively for their six-year investment plans for 2004 - 2009. At the end of 2005, the Authority approved ATV and TVB's plans to each invest more than $400 million for digital terrestrial television in-station facilities and programming in addition to their original six-year plans. Specifically, TVB decided to upgrade its digital production centre in phases to cater also for HDTV productions.  ATV moved to a new headquarter cum production centre in Tai Po Industrial Estate in 2007.

As regards the domestic pay television programme service market, i-Cable Communications Limited (i-Cable), the parent company of HKCTV, reported in its 2007 Annual Report that the capital expenditure of the group for the year amounted to $175 million with major items including investment on television production facilities and further network upgrade and expansion expenditure. i-Cable also invested in in-house production, in the areas of news, entertainment and variety programmes, and movie production. i-Cable also planned to invest in set-top boxes and the transmission encryption system. According to the 2007 Annual Report of PCCW, the parent company of PCCW Media, the capital expenditure for the year on its television and content business was $386 million. 

No public information on capital investment is available for other domestic television licensees and the sound broadcasting licensees.