HONG KONG BROADCASTING AUTHORITY
ANNUAL REPORT
1999 - 2000
Contents
Our Mission and VisionChairman’s Message
Members of the Broadcasting Authority (September 1999 – August2000)
Role and Functions of the Broadcasting Authority
Overview of Broadcasters’ Performance
Review of Work
Appendices
Vision and Mission
of the Broadcasting Authority
The Broadcasting Authority
The Broadcasting Authority serves the people of Hong Kong in its capacity as an independent regulator of broadcasting services to promote Hong Kong as a regional broadcasting and communications hub.
Vision
We envisage Hong Kong as an attractive, dynamic and highly competitive broadcasting hub
where
Industry players / see and seize opportunities in the globalized broadcasting industry.Broadcasters / deliver, innovate, and compete in a supportive environment and on a level playing field.
Our community / enjoys a wide range of quality programmes which are informative, enlightening, educational and entertaining.
Mission
widen programming choice to cater for the diversified tastes and interests of the community;
encourage investment, innovation and technology transfer in the broadcasting industry;
ensure fair and effective competition in the provision of broadcasting services;
ensure that broadcasting services respect public tastes and decency;
work with overseas regulators to keep abreast of world trends and issues in broadcasting; and
communicate with the public to achieve mutual understanding on broadcasting related issues.
1Chairman’s Message
Chairman’s Message
The advent of digital technology and the growth of global and regional broadcasting have brought significant changes to our broadcasting and telecommunications landscape. These changes, which are far from over, are posing big challenges to regulators all over the world. At the same time, they are opening up unprecedented opportunities for growth. In a time of great change, it is important for us to critically re-evaluate our core objectives to ensure that they will continue to remain relevant and attainable.
The 1998 Television Policy Review has done just that. It opened up the TV market, liberalized the regulatory regime, embraced new technologies, and made Hong Kong a place of opportunities and innovation for the industry.
The past year has been an especially important one for us as we have been able to translate our policy objectives into legislation. The Broadcasting Ordinance was enacted in June 2000. It has repealed the previous Television Ordinance and put into place a new technology-neutral regulatory framework for the provision of television programme services. We have also, among other things, achieved the following tasks :-
the opening up of the television market for new players;
the drafting of Competition Guidelines to ensure a level playing field for industry players; and
the drafting of a more liberalized and user-friendly Codes of Practice for programming and advertising.
In the year to come, we will continue to work with the Government to implement the various policy initiatives to strengthen Hong Kong’s position as a regional broadcasting hub. Our specific tasks for next year include, among others :-
inviting new applications for non-domestic television programme service licences and other licensable television programme service licences;
assisting the Government in the formulation of a regulatory framework for digital broadcasting services;
administering the competition provisions in the Broadcasting Ordinance after the promulgation of the Competition Guidelines; and
maintaining close liaison with overseas regulators to ensure that our regulatory regime reflects international best practices.
As Chairman of the Broadcasting Authority, I am privileged to have the chance to work with a group of first-class local and international broadcasters whose visions and effort have contributed immensely to the development of the industry. My thanks also go to all relevant government departments whose efficient service has greatly facilitated the work of the Authority.
Most of all, I would like to thank my distinguished fellow members for their advice and support. My special thanks go to Mr Michael Tien who led the editorial board in preparing this report which captures the Broadcasting Authority’s philosophy and activities in an excellent visual and written form.
We are living through exciting times. In an era of rapid technological development, we need to be at the cutting edge of the multi-media revolution by keeping abreast of changes affecting the broadcasting industry.
The Broadcasting Authority, working as a team, will ensure that Hong Kong will continue to remain an attractive, dynamic and highly competitive broadcasting hub in the region.
LEUNG Nai-pang, Norman, GBS, JP
Chairman, Broadcasting Authority
2Members of the Broadcasting Authority
September 1999 – August 2000
一九九九年至二OOO年度
廣管局委員
Members of the Broadcasting Authority
(September 1999 – August 2000)
梁乃鵬太平紳士
Mr. Norman LEUNG Nai-pang, GBS, JP
Chairman, Broadcasting Authority
鄺其志太平紳士
Mr. K C KWONG, GBS, JP
Vice-Chairman, Broadcasting Authority, in the capacity of
Secretary for Information Technology and Broadcasting
(up to March 5, 2000)
鄭汝樺太平紳士
Ms. Eva CHENG, JP
Vice-Chairman, Broadcasting Authority, in the capacity of
Acting Secretary for Information Technology and Broadcasting
(from March 6, 2000 to June 30, 2000)
尤曾家麗太平紳士
Mrs. Carrie YAU Tsang Ka-lai, JP
Vice-Chairman, Broadcasting Authority, in the capacity of
Secretary for Information Technology and Broadcasting
(as from July 1, 2000)
杜國鎏太平紳士
Mr. Clement TAO Kwok-lau, BBS, JP
戴潘靜常太平紳士
Mrs. Joyce TAI POON Ching-sheung, BBS, JP
李瑞成先生
Mr. Benedict LEE Shui-sing
方文雄先生
Mr. David FONG Man-hung
方和先生
Mr. Felix FONG Wo
田北辰太平紳士
Mr. Michael TIEN Puk-sun, BBS, JP
陸觀豪太平紳士
Mr. Roger LUK Koon-hoo, JP
蘇洪亮太平紳士
Mr. Lincoln SOO Hung-leung, JP
王錫基太平紳士
Mr. Anthony WONG Sik-kei, JP
(Director-General of Telecommunications)
關永華太平紳士
Mr. Leo KWAN Wing-wah, JP
(Deputy Secretary for Home Affairs)
3Role and Functions of the Broadcasting Authority
Role and Functions of the Broadcasting Authority
The Broadcasting Authority (the Authority) is an independent statutory body established under the Broadcasting Authority Ordinance (Cap.391) for the regulation of the broadcasting industry. Its role is to regulate licensed television and radio broadcasters in Hong Kong through provisions in the Broadcasting Ordinance (Cap.562), the Telecommunications Ordinance (Cap.106) and the Broadcasting Authority Ordinance.
In practice, this role requires the Authority to:award licences for the provision of non-domestic and other licensable television programme services;
make recommendations to the Chief Executive in Council on applications for and renewal of domestic free and domestic pay television licences and sound broadcasting licences;
prepare and revise codes of practice setting standards for television and radio broadcasts;
administer the various broadcast licences;
ensure compliance by the licensees with the regulatory system governing such broadcasts and to keep abreast of developments in the industry; and
deal with complaints about broadcasts and impose sanctions on the broadcasters, if necessary.
Organisation
The Authority consists of 12 members all of whom are appointed by the Chief Executive. Nine of them, including the Chairman, are non-official members drawn from the community. The remaining three are public officers. They are the Secretary for Information Technology and Broadcasting, the Director-General of Telecommunications and the Deputy Secretary for Home Affairs.
The Authority discharges the major areas of its duties through its two committees: the Complaints Committee and the Codes of Practice Committee. The Authority receives feedback and input from the community through the 18 district consultative groups and the two regional advisory panels set up by the Television and Entertainment Licensing Authority.
The Complaints Committee is responsible for considering complaints about broadcasting and making recommendations to the Authority regarding such complaints. It comprises 5 Authority members and 4 co-opted non-official members.
The Codes of Practice Committee is responsible for keeping various broadcasting standards under regular review and the issue of codes of practice for new services. It comprises 5 Authority members and 3 co-opted non-official members.
By virtue of the Broadcasting Authority Ordinance, the Commissioner for Television and Entertainment Licensing is the Authority's Principal Executive Officer. The Television and Entertainment Licensing Authority serves as the executive arm and secretariat for the Authority.
一九九九年至二OOO年度
廣管局投訴委員會委員
Members of the Broadcasting Authority
Complaints Committee 1999-2000
主席
Chairman
戴潘靜常太平紳士
Mrs. Joyce TAI POON Ching-sheung, BBS, JP
委員
Members
方文雄先生
Mr. David FONG Man-hung
方和先生
Mr. Felix FONG Wo
李瑞成先生
Mr. Benedict LEE Shui-sing
陸觀豪太平紳士
Mr. Roger LUK Koon-hoo, JP
增選委員
Co-opted Members
劉敬賢先生
Mr. Larry LAU King-yin
盧志鴻先生
Mr. Terence LO Chi-hung
曾安琪女士
Ms. Angela TSANG
鄒挺群先生
Mr. Rowland CHOW Ting-kwan
一九九九年至二OOO年度
廣管局業務守則委員會委員
Members of the Broadcasting Authority
Codes of Practice Committee 1999-2000
主席
Chairman
杜國鎏太平紳士
Mr. Clement TAO Kwok-lau, BBS, JP
委員
Members
方文雄先生
Mr. David FONG Man-hung
方和先生
Mr. Felix FONG Wo
蘇洪亮太平紳士
Mr. Lincoln SOO Hung-leung, JP
田北辰太平紳士
Mr. Michael TIEN Puk-sun, BBS, JP
增選委員
Co-opted Members
李文豪醫生
Dr. Joseph LEE Man-ho
黃冠文先生
Mr. Adrian WONG Koon-man
關治平先生
Mr. Edgar KWAN Chi-ping
4Overview of Broadcasters’ Performance
Overview of Broadcasters' Performance
Television
Domestic Free Television Programme Services
There are over 2 million television households in Hong Kong representing a television penetration rate of 99%. Domestic free television programme services are one of the most popular form of entertainment among all local television households. The two domestic free television programme service licensees, Asia Television Limited (ATV) and Television Broadcasts Limited (TVB), each operates one Cantonese and one English language television service, and offer a variety of acquired and station-produced programmes.
A significant development is the convergence between television and the Internet services. Both TVB and ATV have developed their own web sites which offer a range of off-air support services for their programmes.
Domestic Pay Television Programme Services
Hong Kong Cable Television Limited (HKCTV), which delivers its domestic pay television programme services by cable and microwave, made significant progress in extending its fibre optic network in the year under review. By the end of August 2000, the television network of HKCTV passed about 1,700,000 homes or 83% of the two million television households in Hong Kong. Of this, about 1,100,000 homes were on fibre optic network representing an increase of 350,000 homes over the past year. HKCTV provides a total of 31 channels for its viewers.
Cable & Wireless HKT VOD Limited (C&WHKTVOD) (renamed as PCCW VOD Limited as from 1 December 2000), another domestic pay television programme service licensee in Hong Kong, launched the world's first commercial scale video-on-demand programme service in 1998. Movies and musical programmes remain major attractions of its programme service. Other non-broadcasting services, such as home shopping and home banking services, are also carried on the same network.
Non-Domestic Television Programme Services
As at August 2000, there were four non-domestic television programme service licensees in Hong Kong, viz. Hutchvision Hong Kong Limited (Hutchvision), Galaxy Satellite Broadcasting Limited (Galaxy), APT Satellite Glory Limited (APT Glory) and Starbucks (HK) Limited (Starbucks).
Hong Kong is the home base for Satellite Television Asian Region Limited (STAR TV). Hutchvision, which launched its service in 1990, uplinks STAR TV services through Asia Sat 3S from Hong Kong, reaching more than 300 million people across Asia, India and the Middle East. It offers 26 channels in seven languages, of which four free-to-air channels are receivable in Hong Kong.
Galaxy officially launched its service in August 1998. Using the APSTAR IIR satellite, it offers one entertainment channel and one drama channel, both of which are broadcast in Putonghua and encrypted for subscription by customers in places across Asia, Australia and Europe.
APT Glory launched its first television channel – the Hallmark Channel in August 2000. This English entertainment channel is encrypted and targeted at authorized viewers in China excluding Hong Kong.
Starbucks obtained its licence in January 2000 and commenced the transmission of a new channel Network of the World (NOW) in June 2000. The English language service offers unencrypted programmes via satellite for general reception free of charge. NOW is also being offered as a global multimedia-broadband-interactive television service, pioneering the convergence of telecommunications, computer and television technologies.
Radio
Hong Kong Commercial Broadcasting Company Limited (CRHK) operates two Chinese language services on the FM frequencies, viz. CR 1 and CR 2, and one English language service, Quote 864, on the AM frequency.
Metro Broadcast Corporation Limited (Metro) operates three radio channels, viz. Hit Radio (renamed as Metro Showbiz as from 22 January 2001), FM Select (renamed as Metro Finance as from 5 February 2001), and Metro Plus.
Radio Television Hong Kong, the public broadcaster in Hong Kong, operates seven radio channels, providing Cantonese, English and Putonghua services. Beginning April 2000, all of its programmes are broadcast live on its web site 24 hours a day.
5Review of Work
Review of Work
Enactment of the Broadcasting Ordinance
The year under report witnessed the passage of the Broadcasting Bill which marks an important milestone in Hong Kong’s move towards a liberalized, convergent and competitive broadcasting market.
The old regulatory regime under the repealed Television Ordinance, which imposed regulatory control on the basis of the modes of transmission, was inadequate to deal with the challenges of convergence. Recognising that technological advance must be supported by a flexible and facilitating regulatory environment, the Authority fully supports the introduction of a new piece of legislation and has actively contributed towards the shaping of the new regulatory framework.
The Broadcasting Ordinance (Cap. 562) came into operation on 7 July 2000. It provides a technology-neutral, fair and business-friendly regulatory framework sufficiently flexible to embrace new services made possible by convergence in technologies.
There are four categories of television programme service under the Broadcasting Ordinance, namely domestic free television programme service; domestic pay television programme service, non-domestic television programme service and other licensable television programme service.
In line with our objective to open up the broadcasting market and minimise entry barriers, the ownershipcontrol and investment rules are suitably relaxed under the Broadcasting Ordinance. For example, the restrictions on voting control by persons who are not ordinarily resident in Hong Kong are retained only for domestic free licensees, thus vastly increasing opportunities for overseas investment. The rules on persons who are not allowed to exercise control of a licensee (the “disqualified persons”) are also relaxed, thus permitting greater opportunities for cross-market developments in a technology-convergent environment. Obsolete regulatory restrictions and the charging of royalties, which are no longer relevant or necessary in an open-up television market, have also been abolished.
To provide broadcasters with greater flexibility in packaging their advertisements, we have removed advertising time restrictions for all categories of licensees (except domestic free licensee, which willcontinue to be the most pervasive source of information and entertainment).
Finally, to safeguard fair competition in the television market, the Broadcasting Ordinance includes provisions prohibiting anti-competitive conduct and abuse of dominance.
Drafting of the Competition Guidelines
In order to assist licensees to comply with the competition provisions under the Broadcasting Ordinance, the Authority would publish two sets of draft competition guidelines for public consultation in September 2000. The draft guidelines set out how and the circumstances under which the Authority will enforce the competition provisions. After the Authority has completed the consultation exercise and finalised the competition guidelines, the competition provisions under the Broadcasting Ordinance will come into operation.
Drafting of Generic Codes of Practice
During the year under report, the Authority devoted itself to the drawing up of a set of draft Generic Codes of Practice for television (Generic Codes) which would be published for public consultation in September 2000. The draft Generic Codes seek to provide standards on programming and advertising materials for the four categories of licences under the Broadcasting Ordinance. They specify different degrees of regulation which are commensurate with the pervasiveness and characteristics of the different categories of services under the Broadcasting Ordinance. The new format adopted by the Generic Codes will also simplify administration and render the codes more user-friendly.
The Authority has also taken the opportunity to review and update the codes of practice for radio (Radio Codes) in the light of the standards adopted in the Generic Codes.
Examination of Applications for Television Broadcasting Licences
On 14 August 1999, the Administration invited applications for television broadcasting licences. The invitation gave effect to the policy decision arising from the 1998 Review of Television Policy to open up the television market. During the year, the Authority examined ten applications for television broadcasting licences. Upon the Authority’s recommendations, new domestic pay television programme service licences were granted by the Chief Executive in Council in December 2000.
Drafting of the Guidance Notes for Applications for Non-Domestic and Other Licensable Television Programme Services Licences
The Authority is empowered to issue licences for non-domestic television programme services and other licensable television programme services. The Authority intends to invite applications for the two types of licences in 2000 and 2001 respectively, and has embarked on the drafting of guidance notes for those interested in applying for the licences. The guidance notes will set out the regulatory framework under which the licensees are to be governed, the general licence conditions, information required for the applications and the licensing criteria for different types of licences.
Digital Broadcasting
The Government conducted technical trials of digital audio broadcasting in conjunction with the three radio broadcasters, and commissioned a consultant to conduct an economic study on digital audio broadcasting. As regards digital terrestrial television (DTT), a Government-Industry steering committee was set up in 1999 to co-ordinate the conduct of technical trials. Three technical trials had been conducted to test and compare the features and performance of the three prevailing DTT standards, namely, the Advanced Television System Committee (ATSC) standard of the United States, the Digital Video Broadcasting - Terrestrial (DVB-T) standard ofEurope and theIntegrated Services Digital Broadcasting - Terrestrial (ISDB-T) standard of Japan. Furthermore, a frequency planning study was conducted to ascertain the number of frequency channels available under the three DTT systems respectively. With the benefit of the results of the technical trials and the consultancy studies, the Government has formulated policy proposals on digital terrestrial broadcast for public consultation.