MEDIA analysts believe Television Broadcasts' (TVB) agreement to provide Chinese language programming in Europe through a satellite television channel will allow TVB to improve its margins without exposing itself to risk through direct investment.
TVB has signed an undisclosed fixed licence fee to allow The Chinese Channel, a joint-venture between London-listed Wilton Group and a private local company, Shaw Media Corp, to broadcast TVB programmes from St Petersburg to Dublin from midnight on March18.
''The bottom line for TVB is that they are selling existing programmes to a new broadcaster and realising value in a market that otherwise wouldn't be developed,'' said Charles Whitworth, media analyst for James Capel in Hong Kong.
Mr Whitworth added that TVB would earn only ''incremental revenue'' from the deal.
Fred Bowers, media analyst at Nomura Research Institute Hong Kong, agreed.
''For TVB this deal means the downside is limited,'' Mr Bowers said. ''So their attitude is 'why not try it and see if it works'.'' TVB owns two Chinese language television stations, one in Los Angeles and one in San Francisco, is providing Chinese language programmes for a cable television station in Australia, and has embarked on joint ventures in Taiwan and Canada to use some of its 75,000 hours of programmes and produce shows for local audiences.