Government Failure and Free to Air TV Licensing

Government Failure: Why the Majority View is Not Heard?

Free-to-air TV Licensing

1. Policy Background

a. 1957-1998

A total of 3 free television licenses granted and 2 television stations survive

In 1957, Rediffusion Television Limited (RTV, now known as Asia Television Limited, ATV) was the first company in Hong Kong granted a television license to operate a wired subscription service. Eight years later, wireless television broadcasting was available, and the first license was granted to Television Broadcasts Limited (TVB) and it started providing free television service in 1967. Before 1973, TVB was the only operator in the free television industry but the monopoly market structure changed as the government decided to issue two more free-to-air television licenses to RTV and Commercial Television Limited respectively in 1973 and 1975. However, Commercial Television Limited ended its operation and declared bankruptcy in 1978. Since then, the government never re-issued the licenses and the whole free television market was dominated by both TVB and RTV (or ATV).

b. September 1998

Review of Television Policy

In 1998, the government started reviewing the whole television policy in Hong Kong, claiming that the objective is to encourage and promote expansion, create a fair, flexible and pro-competition environment in the free television industry.

c. November 2007

A new era of Digital Broadcasting

In fact, analogue television broadcasting was the only broadcasting method before 2007. However, digital technology changed the way of transmitting television program signal. The Commerce and Economic Development Bureau first announced in November 2007 that Hong Kong would adopt the national digital terrestrial tele...

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...n for the government to worry the market cannot sustain if a total of five licenses co-exist in the free television market. It is suggested to grant the license to those which meet the relevant requirements, for example, financial capability, expertise and transmission infrastructure.

6. Conclusion

Why the majority view is not heard? After analyzing the case of the free-to-air television policy, the major problem is we have no democracy in Hong Kong, and the Chief Executive is given too much power. Hence, Introducing universal suffrage and avoid China government blatantly intervening in the affairs of Hong Kong is the best way to correct such political system failures,

As to deal with the market failure, it is suggested that the Commerce and Economic Development bureau set up a list of criterion and grant a license to those who fulfils the basic requirements.