The year under review has been a particularly challenging and productive year for the Authority. Considerable attention has been devoted to the implementation of digital terrestrial television (DTT) services and the result has been encouraging. Television viewing has been elevated to new heights enabling Hong Kong viewers to watch the 2008 Beijing Olympic Games with enhanced picture quality and multi-channeling features made possible under the new DTT environment. Innovative and consumer-friendly technological advances have delivered unprecedented levels of convenience to free as well as pay television viewers. In the sound broadcasting market, listeners in Hong Kong will have more programming choice with the grant of a third sound broadcasting licence by the Chief Executive in Council. In this year's Annual Report, I shall review the efforts made and results achieved by the Authority in carrying out its mission measured against new developments in Hong Kong's fast-evolving broadcasting sector.

A Thriving Broadcasting Market

Domestic Free Television Programme Services

Hong Kong entered a new era of digital terrestrial broadcasting at the end of 2007. The two domestic free television programme service licensees, Asia Television Limited (ATV) and Television Broadcasts Limited (TVB), launched their respective DTT services on 31st December 2007, comprising digital simulcasts of the four existing free-to-air channels together with new digital programming channels. ATV launched five new standard definition television (SDTV) channels, namely "aTV" News & Business Channel, His TV, Her TV, Plus TV and CCTV4, as well as an "aTV" HD Channel broadcasting 14 hours of high definition television (HDTV) programmes per week. TVB launched a 24-hour HDTV channel called High Definition Jade as well as an SDTV channel, J2. The station also planned to launch another SDTV channel, Interactive Information Channel, 1st January 2009. Both ATV and TVB provided extensive coverage of the Beijing Olympic Games through their new digital programming channels.

Domestic Pay Television Programme Services

The domestic pay television market continued to grow in terms of subscription size, programming variety and service development. The aggregate number of subscribers of licensed pay television services increased by 10.5% from 1 840 000 to 2 033 876 as compared with the previous year. The total number of pay television channels offered by the three domestic pay television programme service licensees increased by 8% from 271 to 293 over the same period. In addition to growth in the number of channels, innovative interactive services were introduced, including home banking, cinema ticketing and food delivery. Online video recording services were also made available to subscribers.

Sound Broadcasting Service

The Authority processed an application from Wave Media Limited for a sound broadcasting licence to establish and maintain a 24-hour Cantonese language AM radio channel.  The Authority assessed the application against the established criteria and public opinions received during the consultation exercise conducted in accordance with the consultation guidelines promulgated by the Authority in 2006.  Having considered the recommendations submitted by the Authority, the Chief Executive in Council granted a new sound broadcasting licence to Wave Media Limited.

Mobile TV

Mobile TV is developing rapidly as a nascent and personally-tailored service in developed economies. In response to market development and technological advances, the Government has conducted two rounds of consultation on the implementation of mobile TV in Hong Kong and promulgated an implementation framework based on market-led, technology-neutral principles to facilitate the launch and growth of this innovative service. We welcome the introduction in the near future of this new mode of television service in Hong Kong which will further enhance consumer choice.

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