bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

urlAlias

moreOnThisArticles

sponsorType

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

SCMP Reporter

Guangzhou TV earned 300 million yuan last year by splicing its own advertising into the signal of its Hong Kong rival, Television Broadcasts (TVB).

In September, TVB was given legal permission to air its Cantonese-language Jade channel and English-language Pearl channel in the Pearl River delta.

But the 'landing rights' have done little to divert the flow of advertising fees away from rogue sellers in the mainland, which continue to hijack TVB's signal.

'Although TVB now has legal backing, there's no difference to us,' a Guangzhou-based media buyer said.

Guangzhou TV, which owns the city's cable network, projected advertisements sold with TVB programming would climb more than 15 per cent this year to 350 million yuan.

Advertisements spliced into the TVB signal represent pure profit for mainland broadcasters. Advertisements sold with TVB programming accounted for 60 per cent of Guangzhou TV's 500 million yuan in revenue last year.

'It is difficult for TVB to work with a mainland partner. The collection of advertising revenues involves too many parties,' an industry source said.

One advertising splicer that has gone legitimate is Southern Media Corp (SMC), owned by the Guangdong government. The firm had an estimated 600 million yuan in turnover last year, with more than 50 per cent coming from TVB programming.

Although it will pay TVB a programming fee estimated at $50 million this year, that still leaves much room for the broadcaster to earn a profit.

'Both  [Guangzhou TV] and SMC are state-owned and they pay sales tax to local governments, with much derived from advertising splicing TVB's programming,' the media buyer said. 'Everybody here wants to keep the business going.'

He estimated advertisements sold with TVB programming would cost 10 to 20 per cent more this year.

This year, SMC is selling prime-time commercial slots on TVB Jade by itself and working with commissioned vendors to sell other time slots for the channel.

SMC is only interested in TVB's prime-time programming, distributing the slots to vendors to sell. Its daytime space is given to mainland firms developing television shopping shows.

Another factor hindering TVB's traction in Guangdong - a television advertising market estimated  at three billion yuan a year - is the departure of senior executives.

Dewy Ip, which rejoined TVB as general manager of international operations in April, left the broadcaster late last month. Group general manager Ho Ting-kwan is to retire in April or May.

Both were key negotiators  involved in winning TVB's landing rights and partnership with SMC last year.

Other mainland stations expect TVB-related advertising to grow as much as 20 per cent this year.

This year, Guangzhou TV expects to do even better.



Guangzhou TV reaps harvest from ad splicing