Phoenix Satellite Television has won approval to air its Putonghua InfoNews Channel in China, raising hope at the loss-making firm that the 24-hour channel can boost advertising revenue and break even by next year.
'We are the only 24-hour news channel to broadcast in the mainland,' said chief executive Liu Changle.
'With China's entry to the [World Trade Organisation], information and news content are in high demand. We have strong confidence in getting advertising revenue.'
The landing rights, granted by the State Administration of Radio, Film and Television, enable InfoNews to be viewed legally in luxury hotels, diplomatic compounds and other specially designated compounds.
Phoenix, in which Rupert Murdoch's News Corp has a stake, has recorded losses for the past seven quarters partly because of InfoNews. Launched in early 2001, with an annual budget of US$15-$20 million, it had failed repeatedly to get rights to broadcast in the mainland.
It reported a loss of HK$20.42 million for the three months to September 30 last year and has net cash of US$50 million.