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In a bid to turn its fortunes around, TVB will implement a cost-cutting plan and seek growth opportunities in e-commerce over the coming year.

TVB chairman and executive director Thomas Hui To on Wednesday said he believed the worst was over for the station after both mainland China and Hong Kong reopened to the world by removing pandemic curbs.

TVB gets a 49 per cent stock boost after deal with Alibaba’s Youku platform

“I believe the group has walked out of its darkest moment,” Hui said.

“As the city’s businesses and companies increase their marketing and promotional efforts to capitalise on new opportunities, TVB, as the leading player in the city’s TV advertising market, is well positioned to benefit,” a statement from the firm read.

Hui said the broadcaster would diversify its business to generate greater income. Changes included increasing e-commerce activities and working on more co-productions with firms in the mainland to tap into the market there and overseas, he said.

“China’s exit from pandemic restrictions also creates a favourable outlook for our mainland operations. We expect our mainland business will achieve desirable growth ... and we are confident that TVB can further diversify its income and drastically reduce its losses,” he said.

Last week, the broadcaster announced it would cut 5 per cent of its staff, or 180 employees, and slash production costs in a bid to save HK$260 million in annual operating expenses.

Hui said TVB would significantly adjust programme production budgets. Shows that failed to reach expected viewership levels and financial returns would be axed, he said, adding the company would also cut back on outsourcing production and rely on in-house staff to achieve the same quality at a reasonable cost.

TVB general manager Eric Tsang Chi-wai, who said the lay-offs were largely part of the company’s “natural turnover”, vowed that the station would not cut down on its number of productions but instead strengthen their quality by seeking greater cooperation with mainland firms.

“We will make many new attempts, including through producing short videos and cooperation with mainland firms, to explore the possibility of working with overseas platforms such as Netflix or Disney in a bid to gain a share of the international market,” he said.

TVB hits the jackpot as Taobao Live debut generates strong sales on mainland

As part of efforts to expand into the cross-border online retail business, TVB last week signed a two-year deal with dominant Chinese video platform Youku to supply it with dramas and give it access to the company’s film library in a move expected to generate 700 million yuan (US$102.5 million) in revenue.

Earlier this month the broadcaster launched its Taobao Live plan to grab a slice of the mainland’s “huge live-streaming e-commerce industry”, with its debut generating about 24 million yuan in sales within the first six hours.

TVB, which had gained 158,000 followers, said it would invite its stars to use its live-streaming room for at least 48 shows this year.

Hong Kong broadcaster TVB’s net losses narrow by 21 per cent to HK$224 million

Both Youku, which has similarities with YouTube and Netflix, and the Taobao Live e-commerce streaming service are owned by Alibaba Group Holding. Alibaba owns the South China Morning Post.

In comparison, rival ViuTV posted revenue growth of 14 per cent year on year to HK$910 million in 2022 with profits of about HK$97 million, mainly from the success of Cantopop boy band Mirror, formed through a talent show produced by the firm.