Television Broadcasts (TVB), Hong Kong's largest terrestrial television network, won Beijing's approval to found a wholly owned advertising firm responsible for selling airtime directly to mainland enterprises, which should help boost income at a time of flatlining sales.
Separately, the Run Run Shaw-controlled outfit said due to a sharp downturn in mainstay property-related advertising, it plans to limit its rate increase next year to between 5 per cent and 10 per cent.
The new mainland advertising firm, Gang Shi Multimedia Company, will be based in Guangzhou and then expand to other cities, TVB sales and marketing controller Leung Kin-wah said, cutting out the middlemen who now represent the network in the mainland.
Mr Leung declined to comment on the proportion of advertising revenue coming from mainland companies compared with the network's total. TVB's signal reaches throughout most of Guangzhou, but mainland advertisers generally use its two stations to reach a Hong Kong audience.
TVB submitted the application last year and got the official approval two to three weeks ago, he said.
Under the Closer Economic Partnership Arrangement, a Hong Kong company can operate its own advertising firm across the border.
