HKTV faces stiff competition from YouTube, Facebook

Newly launched HKTV depends on internet advertising, but its profitability remains in question as it faces competition not only from local media outlets but also from overflowing YouTube and Facebook content.

The online station is selling a 15-second spot embedded in shows at HK$30,000 per episode.

Chairman Ricky Wong Wai-kay said that by yesterday, 30 clients had placed advertisements and he expected more interest in the coming weeks.

Wong said placing ads in HKTV programmes had an advantage of tracking potential customers, as the station required viewers to register with their email address, age and income.

"We can identify exactly who have watched the ads and whether they bought any products from our online shopping after watching this ad," he said.

But Wong also admitted that ads would be barely enough to support operations, making it essential for HKTV to cash in on its online shopping platform to be launched in January featuring 333 brands. He said it was too soon to estimate when the station could make a profit.

In the meantime, most advertisers have adopted a wait-and-see attitude. They said digital advertising was a definite trend but HKTV would have to adjust its rates or prove its popularity in order to attract new clients.