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SCMP Reporter

I-Cable Communications, Hong Kong's largest pay-television operator, will establish its own Hollywood movie channel at the end of this year in an attempt to compete against rival PCCW's Now Broadband TV.

Now Broadband TV has secured exclusive rights to premium movie channels HBO, Cinemax and Star Movies. I-Cable, which has been carrying HBO and Cinemax, will lose them by the middle of next year.

'To satisfy subscribers' demand for Hollywood movies, we will start a Hollywood channel and source movies through an international supply platform,' said Tsui Siu-ming, the executive director of programming services  at i-Cable.

'For the Cinemax and HBO movie channels, there are just over 10,000 users, a small proportion of our 700,000 total subscriber base.

'There should be no impact on our subscriber churn rate when we stop carrying these channels.'

Mr Tsui said the company would spend part of its programme cost this year to build up its Hollywood movie library, including exclusive rights for several films.

'We can build up our own channel branding despite spending more on programming.'

Moreover, the company's investment in Chinese-language movie production had gained a positive response from overseas market, he said.

'We have started the production of four new movies and all of them sold well in the overseas market,' Mr Tsui said.

'We will not lose money from these projects.'

I-Cable announced earlier this year that it would invest $30 million in movie production,  blaming  competition in the pay-television market  for the increasing cost of sourcing movies.

I-Cable shares yesterday closed 1.13 per cent lower at $2.175.



I-Cable to set up US movie channel