The Real Reason Behind Hong Kong Cable TV’s Pay-TV Market Departure
The commerce minister of Hong Kong has labeled Cable Television’s decision to give up its pay-TV license six years earlier than planned as a straightforward “business decision” following the company’s CEO stating that the losses were unsustainable.
Concerns about a lack of competition in the city’s broadcasting industry were dismissed by Secretary for Commerce and Economic Development Algernon Yau Ying-wa, who cited the operator’s commercial reasons for withdrawing and the existence of one other pay-TV station in the area. Yau addressed the media, saying that it was in line with market demand and that a pay-TV program was still accessible.
A day after the government’s Executive Council approved Cable TV’s request to terminate its pay-TV services on June 1, six years earlier than scheduled, due to intense competition in the market, CEO Stephen Wong See-yuen made assurances that the company had no plans to lay off any employees and would hire additional staff for content production.
Wong acknowledged that the loss of football broadcasting contracts had affected the company’s viewership, but stated that the news broadcast brand had a loyal following and that quality content would continue to be available on the free-to-air channel.
Cable Television’s decision to terminate its pay-TV service was described by Hong Kong’s commerce minister as a “commercial decision”. CEO Stephen Wong See-yuen cited intense competition in the paid media market and a loss of lucrative football broadcasting contracts.
The company will continue to offer internet services, while Wong reassured customers that the pay-TV network would contact them regarding cancellation and refund arrangements. The Consumer Council received only two inquiries from concerned residents but advised them to check their subscription contracts in readiness for dealing with the broadcaster’s customer service personnel.