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TVB executive director Mark Lee hits out at the Communications Authority action. Photo: K. Y. Cheng

Hong Kong Communications Authority action will harm new TV programme production, says TVB boss

Executive director Mark Lee hits out at the body’s decision to fine the broadcaster over product placement in award programme

Broadcaster TVB, which is embroiled in a bitter dispute with the Communications Authority over a HK$150,000 fine for indirect advertising, feared stricter enforcement by the watchdog would hurt its ability to produce high-quality programmes.

TVB executive director Mark Lee Po-on said indirect advertising was an important source of revenue, and the watchdog’s latest move to crack down on the practice could affect its financial resources for the production of new programmes.

Hong Kong’s television rules prohibit the mingling of television programmes and advertising material or the embedding of advertising within content, whether inadvertently or by design.

The underlying rationale for the prohibition of indirect advertising is that viewers should not be confused as to whether they are watching a programme or a paid advertisement, according to television codes of practice.

Lee complained that the Communications Authority was implementing the law in a much stricter manner, which put it and other local players in a passive position in competing with international rivals.

“Not only can’t the Communications Authority’s practice advance with the times, it’s running in the opposite direction,” Lee said, adding that inserting indirect advertising to programmes was a common practice overseas.

The Communications Authority said it received 15 complaints from the public after the broadcasting giant displayed the brand logo of a fried chicken chain on boxes and cups that were served to the station’s artistes during the livecast of its T V Awards Presentation show on the Jade and HD Jade channels on December 13.

Lee said the broadcaster would take the media watchdog to court for “the sake of the whole industry”.

Lee also played down the impact of heated competition from new rivals, saying it had yet to record “audience loss” since the launch last month of ViuTV, the city’s first free-to-air TV station in 37 years. But Lee said the city had no room for another player as the local economy remained weak.

“The Hong Kong TV market is very small ... It can accommodate two [private] free-to-air TV stations right now,” Lee said, adding the government should not grant unlimited licences.

Lee noted the free-to-air TV operators carried a great social responsibility in providing information, culture and educational programmes, which might not generate profits.

The TVB boss refused to comment on ViuTV’s popular programmes, including Korean drama series Descendants of the Sun and much-hyped reality show Travel with Rivals. He said the two TV stations drew different types of viewers and its own ratings had been stable in the past five weeks.

“Our viewers have been very loyal,” Lee said.

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