Preparing for its initial public offering, ATV has been busy re-organizing its personnel and operations. ATV first announced plans of reducing the number of managed artists and production staff by 67 people in December 2006. It was part of a re-organization strategy to attract new investors. A new subsidiary company, 「亞洲娛樂製作有限公司」, will be set up by ATV to produce new series and programs [but output should decrease from prior years].

When the Artist Department is shut down, some of ATV's artists will be converted to regular employees with set monthly salaries at ATV's subsidiary company. However, many of ATV's artists will not be converting to regular employee status and over 100+ artists may be impacted!

Artists who convert to employee status at the subsidiary company will have set monthly salaries. They will primarily take on hosting jobs for variety programs. However their new monthly employee salaries will be lower than existing income levels as artists.

Under the old method, artists received a base salary and additional income based on the number of shows/ episodes filmed. If an artist exceeded the number of shows/ episodes stipulated in their contract, then they will earn extra income.

Under the new arrangement as regular employees, if they were to take on side jobs in promotions, employees will need to receive ATV's approval first.

ATV's top stars Kenneth Chan Kai Tai and Lau Sek Yin have decided to convert to employee status. Kenneth noted, "I am about to sign the new employee contract with ATV's [subsidiary company] in the next few days. The contract terms are reasonable, as ATV offers enough freedom for us. We can continue to film series outside the company and appear at shows, but the company will take a profit cut."

But would Kenneth's income be lowered under the new employee contract? "The company used a fair method of calculating our salaries. It is above former artist base salaries and below the amount that we earned if the number of shows/ episodes were exceeded. I am satisfied with the new arrangement."

Leading female actresses Pinky Cheung and Kong Mei Yee will not convert to employee status once their artist management contracts expire. Pinky said, "My artist management contract with ATV will expire at the end of February, but I will not sign with them again under an employee contract. Perhaps I will look for a new manager instead!"

Actress Ka Wing decided to stay and sign the new employee contract. "My artist contract will not expire until another 6 months. I like hosting jobs and don't mind if the company takes profit cuts. But I am concerned that under the new employee contract, our income will be impacted. The new contract provisions will have to be carefully discussed."

Source: Appledaily

Credit: Many thanks to zhangs_wh at Netease BBS for posting Appledaily article

Jayne: The purpose of the re-organization and establishment of the subsidiary company is to decrease operating costs. At the same time, this will mean less promotion and recognition for its actors.

It's easier for TVB artists to get filming offers in China, but much harder for ATV artists to do so due to lower recognition/ publicity etc. I have a feeling more of ATV's artists may join TVB in the next few months.

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