Wharf Cable yesterday lost its court battle with the Government when a judge ruled that video-on-demand was different from television broadcasting.
Mr Justice Raymond Sears rejected the company's claim that the new service, which Hongkong Telecom plans to introduce next year, should be governed by television laws.
The judge drew a distinction between subscription television, as provided by Wharf, and video-on-demand.
He said it was a fundamental concept of television that the same programmes are broadcast simultaneously and at fixed, predetermined times.
This was different to video-on-demand where the transmission only occurs when the customer asks that a programme be transmitted to him, the judge said.
His ruling means Hong Kong Telecom and any other company wishing to provide video-on-demand services will not need a licence under the Television Ordinance.
While the hearing was under way, the Government announced it would be introducing legislation to deal with the regulation of video-on-demand, a move welcomed by the judge.
