As Television Broadcasts (0511) has taken a step forward with private investment firm Chartwell Venture to enter into a business advisory agreement, the new investor expressed high expectations on the broadcaster's prospects.
Chartwell, which has raised its stake in TVB to nearly 5 percent via its sister Chartwell Capital in the past two years, says it is helping the broadcaster find program sponsors to increase its revenue. TVB should further develop the livestream e-commerce business to grasp the opportunity to be in the black again.
Ronald Chan Wai-yan, founder and managing director of Chartwell, said the company has been introducing foreign and local brands to promote their business in mainland China or overseas via the television station.
It has liaised between foreign governments and TVB, including the consuls of Vietnam and Italy and Thailand's Ministry of Commerce, as well as charities, such as linking with Po Leung Kuk to use the teenage contestants in the singing competition show Stars Academy as ambassadors, Chan said.
Chan reckoned that TVB's recent two sessions of livestream e-commerce with Taobao had already paid off, and the new e-commerce business is well-positioned to replace television advertising as its major source of revenue.
TVB should create more content and work on digital marketing to attract traffic and convert it into revenue from e-commerce, he said.
In the face of the competition with steaming platforms, Chan suggested that TVB should not reject working with local counterparts, in addition to the mainland TV platforms, to expand the market in the Greater Bay Area or Southeast Asia.
"We have to unite to grow the pie," said Chan.
As for management, Chan said that TVB welcomes mainland investors but preferred local shareholders since they can better understand the value of the company. He believes it is best to keep TVB's current management, in contrast with the previous accusations by a retail shareholder alliance.
The alliance earlier accused TVB of maladministration and requested the removal of six of the eight directors on the board. It alleged the broadcaster misled shareholders and investors by giving a profit warning after its share prices were stimulated by the results of live-streaming business.
