TVB wins mainland rights to air flagship channels

Broadcaster expects to earn $50m a year as viewers in five million homes tune in

Hong Kong's leading free-to-air broadcaster Television Broadcasts says it has won long-sought landing rights to legally air its two flagship channels to about five million homes in the Pearl River Delta area and will receive at least $50 million from sales each year.

The broadcasting licence - granted on September 2 - laid a foundation for TVB and its mainland partner Southern Media Corporation (SMC) to jointly develop the market, TVB's general manager of international operations Dewy Ip said.

'We are not [concerned with] the current market but [want] to expand into further business,' Mr Ip said in a media briefing yesterday. 'Our ultimate goal is to set up a joint venture with SMC.'

The channels - Jade and Pearl - will be broadcast on the provincial and city networks of nine cities: Guangzhou, Shenzhen, Dongguan, Zhuhai, Foshan, Huizhou, Jiangmen, Zhongshan and Zhaoqing.

In return, TVB will receive a lump sum 'programme fee' from SMC.

Mr Ip declined to disclose a figure for the programme fee but industry sources said TVB would receive $50 million for the first year and would earn revenue, expected to be at least $50 million, from sales in other streams in succeeding years.