This press release summarises the Communications Authority ("CA")'s decisions following its 47th meeting in November 2015:
Application for Deviations from Programming Requirements by Digital Broadcasting Corporation Hong Kong Limited ("DBC")
The CA approved the application of DBC to deviate from the programming requirements as set out in its sound broadcasting licence ("Licence") and Licensee's Proposal with effect from 16 November 2015, subject to the condition that DBC shall submit a new proposal on the channel arrangements for approval by the CA in the context of the mid-term review of the Licence to be conducted after 22 March 2017.
Under the Licence, unless otherwise approved by the CA, DBC is required to broadcast each day seven 24-hour sound broadcasting service channels of specified genres ("Channel Genres Requirements"), and to comply with the commitments, as set out in the Licensee's Proposal it had submitted when applying for the Licence, in respect of programme mix and number of hours of station-produced and first-run programmes on each channel in its licensed service.
In its submissions dated 22, 27 and 30 October 2015 to the CA, DBC proposed to provide three non-music channels (viz. Talk Radio channel, Youth, Leisure Lifestyle channel and News & Market channel) and four music channels ("Proposed Channel Arrangements") with effect from 16 November 2015, and applied for the CA's approval to deviate from the Channel Genre Requirements (from the existing five non-music channels, comprising Talk Radio channel, Ethnic Minorities channel, News & Market Update channel, Business News channel and Campus channel; and two music channels, including a general music channel and a Chinese opera channel) and the commitments in its Licensee's Proposal in respect of programme mix and number of hours of station-produced and first-run programmes on each channel. In support of its application, DBC submitted that the development of digital audio broadcasting ("DAB") services in Hong Kong had not been satisfactory. In order to maintain its competitiveness and to ensure its business viability, DBC would like to adopt a more flexible operation model by focusing its resources on the development of three channels.
In considering the application, the CA noted that DBC had all along demonstrated commitment to the development of DAB services. It had launched all the seven channels in accordance with the deadlines specified in the Licence. It had also made capital investment and programming investment to develop its DAB services and borne the costs of constructing gap fillers, either with other DAB operators or on its own, to improve the coverage of DAB services. Taking into account the market condition of DAB services and the losses DBC had made in the past few years, the CA accepted that there was a case for DBC to critically review its programming strategy with the aim of improving its business viability. That said, the CA considered that the increase in the number of music channels from two to four under the Proposed Channel Arrangements would reduce programme choices of listeners in terms of non-music content. As DBC's Licence is subject to a mid-term review in 2017, this would provide a timely opportunity for DBC to review its operations comprehensively and to submit a new proposal on the channel arrangements for consideration by the CA.
On the basis of the above, the CA approved DBC's application, on condition that DBC shall submit a new proposal on the channel arrangements for approval by the CA in the context of the mid-term review of the Licence to be conducted after 22 March 2017.
Relocation of Television Broadcasts Limited ("TVB")'s Pearl Channel from Multiple Frequency Network ("MFN") to Single Frequency Network ("SFN")
The CA approved the application by TVB to advance the relocation of the Pearl channel, which is currently being transmitted by TVB's share of the multiplex capacity in the MFN, to the SFN multiplex ("Channel Relocation"), to 22 February 2016, whereupon TVB is required to surrender to the CA the additional 1.5 Mbps of transmission capacity in the MFN multiplex to which it was assigned as a temporary arrangement.
On 31 July 2015, the CA approved TVB's application for the Channel Relocation after the expiry of the extended temporary assignment of the additional 1.5 Mbps of transmission capacity in the MFN multiplex to TVB on 1 April 2016. That approval was contingent upon TVB honouring the commitment it had made in the application to cease the simulcast arrangement on the Jade and HD Jade channels upon the Channel Relocation.
TVB committed in the latest application that upon completion of the Channel Relocation on 22 February 2016, the existing simulcast arrangement on the Jade and HD Jade channels would cease immediately, and the HD Jade channel would be renamed as the J5 channel, a general entertainment channel provided in high-definition digital format. TVB also confirmed that upon completion of the Channel Relocation, they would return the additional 1.5 Mbps of transmission capacity in the MFN multiplex to the CA immediately.
After the Channel Relocation, the viewing public will need to re-scan for channels in their integrated digital TV sets and set-top boxes to continue to receive the Pearl channel. TVB has committed to launching a series of publicity measures, including providing a hotline for answering enquiries, to inform the viewing public of the change and what they need to do to continue to receive the Pearl channel.
Late Payment of Financial Penalties by Asia Television Limited ("ATV")
The CA considered two cases of non-compliance of ATV with the relevant statutory requirement arising from its failure to pay, in accordance with the stipulated deadline, the financial penalties the CA imposed on it in July 2015, viz. $300,000 for its broadcast of inaccurate and misleading news reports about the sale of the controlling shares of ATV to the Chairman of Hong Kong Television Network Limited (referred to as "Case (a)") and $50,000 for its failure to submit the audited accounts for the accounting year of 2014 ("2014 Audited Accounts") (referred to as "Case (b)")1 (collectively referred to as the "Financial Penalties").
The deadline for ATV to pay the Financial Penalties was set for 27 August 2015. Despite the issue of two reminders by the Office of Communications Authority to ATV, it was not until 29 September 2015, i.e. 32 days after the due date, did ATV settle the outstanding Financial Penalties imposed by the CA. In making its representations to the CA, ATV attributed its failure to pay the outstanding Financial Penalties to cash flow problems that the company encountered during August and September 2015.
The CA took a serious view over the contravention of ATV, as failure by a licensee to pay a financial penalty is a serious breach of the relevant statutory provision. The severity of the contravention is manifested in sections 31 and 32 of the BO, under which a failure of the licensee to pay any financial penalty on time constitutes a ground for suspension or revocation of a free TV licence.
Given the nature and severity of the contravention and having regard to ATV's representations, the CA decided that a financial penalty of $50,000 and $20,000 should be imposed on ATV for the breach of section 29(4) of the BO in respect of Case (a) and Case (b) respectively, totalling $70,000 for the two non-compliance cases.
Broadcast Complaints
The CA also considered two complaint cases in respect of the licensees' non-compliance with the codes of practice on television and radio programme standards -
complaints against teloping of inaccurate Mark Six results on the I News Channel of TVB on 13 August 2015. The CA decided that TVB should be advised to observe more closely the relevant provision in the Generic Code of Practice on Television Programme Standards; and
complaints against the radio programme "On a Clear Day" (在晴朗的一天出發) broadcast on the CR 2 Channel of Hong Kong Commercial Broadcasting Company Limited ("CRHK") on 14 August 2015. The CA decided that CRHK should be advised to observe more closely the relevant provision in the Radio Code of Practice on Programme Standards.
Details of the above cases are at the Appendix.
Communications Authority
Secretariat
14 November 2015
Notes:
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The CA decided in July 2015 to impose –
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