Murdoch rules with Sky but Star war continues

DAVID Elstein, head of programming for Rupert Murdoch's British Sky Broadcasting (BSkyB), said it all last week when asked to sum up the secret of the channel's success.

'The average person spends 70 per cent of their leisure time watching television, but only 10 per cent of their disposable income on it. Nature abhors a vacuum - we're just trying to plug that gap.' It is an objective the group appears to have achieved admirably. At its full-year results announcement last week, pre-tax profits were revealed to have soared 66 per cent to GBP257.4 million (about HK$3.09 billion). More than 900,000 subscribers had signed on that year alone, taking the total to 5.5 million in Britain and Ireland.

The result, while certainly pleasing, must sometimes perplex Mr Murdoch, who when casting his eyes westwards from his headquarters in Los Angeles, must wonder what has gone so dreadfully wrong at Star TV.

While London-based satellite broadcaster BSkyB has firmly established itself in Britain, and is looking towards Europe, Hong Kong-based Star TV still is having trouble making a meaningful impact in China - potentially its largest market, and the one Mr Murdoch covets most.

Most recently, the ambition for Star TV's Phoenix Chinese Channel to get formal permission to broadcast on the mainland's cable network was described by a senior Chinese official as a 'beautiful dream'.

While intermittent rows emerge between Star and its supposed mainland joint-venture partner, China Central Television, it has been scoring some successes, notably on its 'regionalisation' strategy.