With ATV out of the picture, it's time for a new era of television in Hong Kong

The show must go on. That is the maxim of the showbiz industry. But for the troubled broadcaster ATV, the time for it to go off air has come. The Executive Council has, at long last, rightly refused to renew its licence, the first time this has happened in Hong Kong's broadcasting history.

ATV has only itself to blame. Once a serious player with some decent productions, the city's oldest television station has degenerated into one that barely survives. A wealth of reasons has contributed to its woes - poor programming, low viewership, limited advertising and bad management. It has become so vicious a cycle that there appears to be no prospect of a turnaround, even if it had been allowed to continue. The problem was aggravated by government inaction. Officials may have been right to follow the procedures before coming to a final decision. But it allowed the stalemate to drag on for too long. The consequences are limited competition and prolonged suffering for audiences. As the public reaction shows, the government should have intervened earlier.

Now that the plug has been pulled, a lot still needs to be done. Apart from proper settlement for its 600-700 staff, ATV has to map out an exit plan. The ailing broadcaster is allowed to operate until next April, though it says it has problems carrying on. The government should closely monitor the situation to ensure a smooth transition to the new licensee. The authorities should also look into the last-minute manoeuvres taken by key investor Wong Ching. On the eve of Exco's meeting, he announced through ATV's news broadcast that he had agreed to sell his controlling stake to HKTV's Ricky Wong Wai-kay, who later denied having struck any such deal. The drama took a new twist with the announcement of yet another rescue by a local investor, just hours before Exco delivered its ruling. Questions have been raised that ATV might have breached the law by releasing misleading market-sensitive information.

ATV's closure only marks the beginning of a new chapter. The public is still yearning for more choices. The free-TV licence granted to PCCW's Hong Kong Television Entertainment is a welcome step, although its fixed-network transmission makes it less penetrative than free-to-air rival TVB. The government should speed up the processing of other applications to enhance competition. Rules and policies should also be reviewed to provide a healthy environment for the development of the television sector.