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The following is issued on behalf of the Communications Authority:
This press release summarises the Communications Authority (CA)'s decisions following its 52nd meeting in May 2016:
Non-compliance with statutory advertising time limit by Television Broadcasts Limited (TVB)
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The CA decided that TVB was in breach of section 11(1) of Schedule 4 to the Broadcasting Ordinance (Cap. 562) (BO) in exceeding the statutory advertising time limit of 10 minutes per clock hour by 67 seconds in the clock hour of 8pm to 9pm on January 16, 2016, on Jade Channel. The CA noted that an advertisement was cut short to make way for a news break-in. The subsequent repetition of the affected advertisement during the ensuing advertising break gave rise to the lapse. Having regard to TVB's submission that the lapse was unintentional, and that TVB had taken the initiative to report the incident and undertook to make its best efforts to observe the relevant requirement, the CA decided that TVB should be advised to observe the relevant requirement more closely.
Expiry of the non-domestic television programme service (non-domestic TV) licence of Asia Television Limited (ATV)
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The CA is not in a position to process the application for renewal of the non-domestic TV licence of ATV. Accordingly, the non-domestic TV licence of ATV will expire on May 31, 2016, as scheduled. As from June 1, 2016, ATV shall cease to provide any non-domestic TV service under the BO.
ATV was granted a non-domestic TV licence by the former Broadcasting Authority in 2004 with a validity period of 12 years from June 1, 2004, to May 31, 2016, under the BO. The non-domestic TV service of ATV comprises one 24-hour Home Channel in Cantonese providing infotainment programmes to audiences in the Mainland.
On May 30, 2014, ATV applied for renewal of its non-domestic TV licence for another 12 years (licence renewal application) in accordance with section 11(2) of the BO. In considering ATV's licence renewal application, the CA would take into account, inter alia, the overall performance of ATV during the current licence period and whether it would continue to comply with the relevant statutory requirements under the BO (viz the "fit and proper person" requirement and residence requirement).
On September 10, 2015, ATV applied to the CA for approval of changes to its shareholding structure (shareholding changes application). As the shareholding structure underpinning ATV's licence renewal application would have a bearing on whether ATV and persons exercising control of it would be able to comply with the applicable requirements under the BO and on the financial soundness of ATV to deliver a non-domestic TV service, the CA informed ATV on September 30, 2015, that the CA would start to process its licence renewal application after the CA had reached a decision on its shareholding changes application, upon which time ATV would be in a position to affirm or revise the shareholding structure which underpinned its licence renewal application and all the commitments which flew from it.
Despite repeated reminders and requests from the CA, ATV has failed to provide the necessary information/clarifications in relation to its shareholding changes application to the CA. Moreover, given the ongoing winding-up proceedings of ATV, under the prevailing law, any change in the shareholding of ATV would be void unless the Court otherwise orders. The lack of progress in ATV's shareholding changes application makes it impossible for the CA to process ATV's licence renewal application further. The non-domestic TV licence of ATV will hence expire on May 31, 2016, as scheduled.
With effect from the expiry of the non-domestic TV licence of ATV on May 31, 2016, ATV shall cease to provide any non-domestic TV service in Hong Kong. Under section 5 of the BO, providing broadcasting service without a licence is a criminal offence. ATV has been put on clear notice of the consequence of any person providing broadcasting services without a licence.
Application by Metro Broadcast Corporation Limited (Metro) for lifting the time limit imposed on the simulcast arrangements on its Digital Audio Broadcasting (DAB) Service
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The CA rejected Metro's application for lifting the time limit imposed on its simulcast of FM service and the broadcast of FM programmes on its DAB channels under its DAB licence.
Metro's DAB licence provides that, unless the CA otherwise approves or determines, for each channel on Metro's DAB service, the licensee shall ensure that the aggregate time in any week for simulcasting any FM broadcasting service (FM Simulcast) and for broadcasting any FM programme transmitted in the digital form for the first time (First-time FM Programmes Broadcast) shall not exceed 50 per cent of the total broadcast time of that week.
Metro applied for the CA's approval to lift the 50 per cent time limit on FM Simulcast and First-time FM Programmes Broadcast so that it could arrange for FM Simulcast and First-time FM Programmes Broadcast on each of its DAB channels up to 100 per cent of the total broadcast time. In support of its application, Metro submitted that it was facing great difficulty in generating sufficient income to cover the cost for operating the DAB channels and that the removal of the time limit on FM Simulcast and First-time FM Programmes Broadcast would enable Metro to make better use of its resources.
In considering Metro's application, the CA noted that the 50 per cent limits on FM Simulcast and First-time FM Programmes Broadcast as stipulated in the DAB licences served to provide greater programming variety and to ensure a more effective utilisation of the DAB multiplex. Lifting the relevant time limits as proposed by Metro ran contrary to the Government's policy objective on DAB service to widen programme choice. The CA also considered that a complete removal of the time limits imposed on FM Simulcast and First-time FM Programmes Broadcast would be tantamount to permitting a full replication of Metro's FM and DAB services, which would not be an effective and efficient use by Metro of the DAB multiplex capacity to which it was assigned. Furthermore, the CA noted that, being a broadcaster holding both analogue sound broadcasting and DAB licences, Metro had already been afforded the flexibility under its DAB licence to arrange for simulcast of FM and AM services on its DAB service. Any further relaxation of the time limits on FM Simulcast and First-time FM Programmes Broadcast might unlevel the playing field further vis-à-vis the remaining DAB licensee. Taking into account the above considerations and Metro's submissions, the CA decided to reject Metro's application.
Non-compliance by Metro with channel genres requirement under its DAB licence
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The CA decided that Metro was in breach of the channel genres requirement under its DAB licence in respect of simulcasting programmes on the Metro Music Digital (MMD) and Metro Life Digital (MLD) channels from January 9 to February 10, 2016 (the relevant period).
Metro's DAB licence provides that, unless otherwise approved by the CA, Metro shall broadcast three 24-hour sound broadcasting service channels of specific genres. The CA noted that 96 per cent of the programmes broadcast on MMD were identical to those on MLD during the relevant period. The substantial duplication in the contents of MMD and MLD was clearly not an effective and efficient use by Metro of the DAB multiplex capacity to which it was assigned. Noting that this was the first time that Metro had failed to comply with the channel genres requirements or any other programme requirements under its DAB licence and that Metro took prompt actions to rectify the non-compliance by making further changes to the programme line-up of MMD, the CA decided that Metro should be advised to observe the relevant licence condition more closely.
Renewal of other licensable television programme service licences
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The CA approved the applications by Hotel Holdings Limited and Cityability Limited for the renewal of their respective other licensable television programme service licences for the provision of television programme service to hotel rooms in Hong Kong for a period of 12 years. Including Hotel Holdings and Cityability, there are now 24 other licensable television programme service licensees providing services to more than 80 hotels in Hong Kong.
Broadcast complaints
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The CA also considered four complaint cases in respect of the broadcasters' non-compliance with the Generic Codes of Practice on Television Programme Standards (TV Programme Code) and Advertising Standards (TV Advertising Code):
(a) Complaints against the television programme "TV Awards Presentation 2015" broadcast on the Jade and HD Jade Channels of TVB on December 13, 2015. The CA decided that a financial penalty of $150,000 should be imposed on TVB for breaching the relevant provisions in the TV Programme and TV Advertising Codes;
(b) Complaints against Radio Television Hong Kong (RTHK)'s television programme "Below The Lion Rock 2015" broadcast on the Jade Channel of TVB and the TV 31 Channel of RTHK on November 14, 2015. The CA decided that RTHK should be strongly advised to observe more closely the relevant provisions in the TV Programme Code;
(c) Complaints against the television programmes "Good Morning Hong Kong" and "News Report" broadcast on the I News Channel of TVB on November 23, 2015. The CA decided that TVB should be strongly advised to observe more closely the relevant provision in the TV Programme Code; and
(d) A complaint against the television programme "now Noon News" broadcast on the now News Channel of PCCW Media Limited (now TV) on November 21, 2015. The CA decided that now TV should be advised to observe more closely the relevant provision in the TV Programme Code.
Details of the above cases can be found at www.coms-auth.hk/filemanager/en/content_713/appx_20160524_en.pdf.
Ends/Tuesday, May 24, 2016
Issued at HKT 16:29
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