A public broadcaster should be solely funded by the government in its first three years of operation, according to reports from focus groups under an independent review committee.
But within 10 years, the station should generate annual revenue equal to 20 per cent of its expenditure, sources close to the committee said.
Under the proposals, the broadcaster would have a three-year budget cycle, similar to educational institutions under the University Grants Committee. This would offer the broadcaster a stable flow of income.
The focus groups initially estimated the broadcaster would cost about HK$800 million a year, since it was expected to have its own TV channel rather than having its programmes aired by commercial stations.
The independent review committee was established in January to look into the future of public broadcasting. Three focus groups were set up last month to study governance, accountability and funding.
Sources said revenue could also come from programme sales, sponsorships and donations. 'But the sponsorships will be limited on a corporate level. The sponsor of a programme should not be a particular product,' one said.