ATV could survive even in face of fresh competition, suggests dated report
Value Partners study stated the station would not close even with five free broadcasters, as Executive Council considers licence renewal
The 57-year-old ATV would not go belly up even if it had to compete with three new free-to-air television stations, according to the conclusions of an apparently dated government-commissioned consultancy study.
Events in previous years indicated investors would come to ATV's rescue, the consultancy, Value Partners, reasoned.
The consultants were commissioned by the Communications Authority in 2010 to assess the viability of letting more players into the market.
They were asked to update their report in early 2012 - way before the broadcaster first failed to pay its staff in July last year. ATV has since recorded late wages for another four months.
A person familiar with the Value Partners report said it noted that, despite difficulties in recent years, ATV would not close down even if the local free-television market had five players.
"The report said that based on past experience, there must be investors coming to ATV's rescue and injecting capital into the station at critical moments," the person said.