Market split on pay-TV's possibilities
Are people ready to pay to watch television? Not just yet, according to the territory's sole subscription channel operator, Cable TV, and the Government's top broadcasting official, Brian Chau Tak-hay.
That is part of their reasoning for extending its pay-TV monopoly for another two years after the station failed to turn a profit from its soon-to-expire exclusive three-year licence.
Cable spokesman Garmen Chan Ka-yiu said it was taking longer than expected to convince viewers to change their attitudes because they were used to watching good programmes free-of-charge on ATV and TVB.
But Hongkong Telecom, preparing to launch a video-on-demand service, says its research shows 70 per cent of viewers are dissatisfied with programmes on all channels.
'They feel if there is good programming, they are willing to pay,' said the head of its interactive multimedia services division, Dr William Lo Wing-yan.
There was little evidence to support the arguments of Secretary for Recreation and Culture Mr Chau and Wharf Cable, he said.
But Mr Chau acknowledged there were different opinions on whether Hong Kong had a 'high degree of resistance to having to pay for your TV programmes'.
Dr Lo said the success of video rentals showed people were prepared to pay for good television.
Tuning into Cable TV - which offers movies, news, sports, and adult channels as well as interactive services such as shopping - costs $700 for a deposit, $50 in installation charges and monthly charges of $208 in private housing estates and $168 in public estates.
Hongkong Telecom's video-on-demand is expected to cost about the same as installing a telephone line - $600 - and then $100 a month with each movie costing $20-30.
