Focus switch as i-Cable gives up pay-TV

i-Cable Communications will focus on free-television business and produce its own dramas after returning its pay-television licenses to the government six years earlier than planned.

In a filing yesterday, i-Cable said its unit, Hong Kong Cable Television, also known as Cable TV, has been granted permission to cease operations from June 1.

The firm said the decision was made "in view of the rapidly changing media landscape in Hong Kong and fierce competition among global pay-TV content providers and pay-TV operators."

It will notify customers of details of the service termination through various channels.

Looking ahead, the broadcaster will put all its efforts into developing three free-TV channels - Hong Kong International Business Channel, HOY TV and HOY Infotainment - as well as commencing production of a new TV series.

Besides its program Let's Talk, which has interviewed Chief Executive John Lee Ka-chiu amid a range of prominent political and business personalities, new programs will be rolled out, such as an in-depth English news program Closer Look, according to an internal memo from Regina Kwan Wai-Ling, director of news and infotainment at i-Cable.

A new 4,000-square-foot studio in New World Tower in Central has just been put into service, Kwan noted, while its studio in Tsuen Wan has been renovated.

And i-Cable does not apparently plan major layoffs due to the changes and will reallocate staff to its free TV businesses. Kwan also said the news team will be seeking more talent.

Last September i-Cable sought approval to terminate its pay-TV license, which was renewed for 12 years in December 2016.

The license was expected to expire in May 2029.

A spokesman for the Commerce and Economic Development Bureau said Cable TV has been operating at a deficit in recent years amid a difficult business environment, so the surrender of the license is a purely commercial decision.

Separately, the chief executive and the Executive Council have accepted recommendations from the Communications Authority, which suggested free-TV channels broadcast no less than 30 minutes of programs on national education, national identity and the national security law weekly.

Trading in i-Cable shares was halted yesterday afternoon after it dropped 2 percent to HK$0.049. It resumes today.

caroline.zheng@singtaonewscorp.com

Editorial: Pulling plug on pay-TV ends the pain