HKTV Chairman Ricky Wong (王維基) announced plans to air dramas and variety programs on ATV channels. Currently streaming content online, HKTV’s collaboration with ATV will allow it to reach broader demographics. Still in the midst of negotiations, the outcome of this decision could potentially boost HKTV’s viewership ratings, as well as increase ATV’s revenue.
Win-win Solution for ATV and HKTV
Struggling financially for years, ATV began selling the copyrights to their classic dramas in order to generate incremental revenue. The Hong Kong government also announced that ATV will not be granted renewal of its broadcasting license once it expires next year. With its days numbered, ATV has been struggling with its cash flow and inability to pay employee wages.
With HKTV’s interest in renting ATV’s 11 channels, ATV’s financial woes may be lessened in the next few months.
Planning to supply over 1000 hours of entertainment to the public through ATV’s channels, HKTV wants to schedule four hours of programming each day through December 31, 2015. To compensate for ATV’s digital space, Ricky Wong will offer ATV $5 million HKD per month and split the advertising revenue at 50 percent. As a result, if the advertising revenue is low during a certain month, ATV will still be compensated $5 million HKD.
Wong stated, “I’ve mentioned this idea to the reporters before. It’s a good thing – definitely worth thinking about. It’ll also allow us to compete with TVB up front. You can’t compare online viewership ratings with actual [TV] ratings.”
However, Wong indicated that if he is unable to reach an agreement with ATV by April 20, then he would ultimately withdraw his offer.
Source: Oriental Daily
This article is written by Su for JayneStars.com.