Positive buzz for channel mix

At last, majority state-owned network Phoenix Television has fulfilled its dream to broadcast like a free-TV service provider in Hong Kong.

The word "like" is used because Phoenix does not actually own Channel 85, on which the station beams programs to thousands of homes for free. Officially, the channel is still owned by the licensee TVB which, nonetheless, passed the channel to Phoenix TV under a deal in which details known to the public are all but scant.

Since Monday, Channel 82 and 85 have been merged into one to become TVB+ while Channel 85 - originally dedicated to TVB's finance, sports and information programs - has become the new Phoenix Hong Kong Channel airing Phoenix productions.

Phoenix has been known to have maintained a keen interest in providing free-to-air TV services in Hong Kong. Under normal circumstances, it would have had to apply to the authority for a free TV license that would involve a lengthy and complicated process.

As a matter of fact, Phoenix had submitted an application for a free-TV license in 2016 but later withdrew it.

The arrangement with TVB will enable it to reach local audiences effectively as a free-TV service provider without a free-TV license of its own.

In giving its consent, the Communications Authority also approved a temporary waiver to spare the new Phoenix Hong Kong Channel from subtitling requirements until July, though Phoenix's programs are produced in Putonghua to appeal to a mainly mainland audience.

It is a win-win deal for the two stations.

On the same day Channel 85 shifted to Phoenix, TVB's share price once rallied over 11 percent before closing 9.15 percent up from the previous trading day. At the same time, TVB said it expected to achieve a net profit for the second half of 2024.

Apparently, the deal bodes well for TVB's fiscal health.

If there were any question about the lawfulness of the deal, the Communications Authority's announcement would have already clarified it.

As a matter of fact, it was last November when TVB revealed in a stock exchange filing its plan to restructure the station to save tens of millions of dollars a year. In addition to laying off a score of staff, the two channels would also be merged into a channel called TVB+. It then also said that after restructuring, the station would operate four terrestrial free-to-air TV channels - namely Jade, TVB+, TVB News and Pearl.

No mention was made as to what would happen with the fifth channel.

Could it be that the station had planned to return Channel 85 to the government but new developments arose afterward?

Twists and turns are not uncommon in the commercial world. When one retreats, another may see an opportunity in it.

In its statement, the Communications Authority said TVB will continue to provide five channels under its license.

The authority also said it will continue to hold TVB responsible for complying with all regulatory requirements under the Broadcasting Ordinance and the station's free-TV license, shouldering the editorial responsibility for broadcast content after completion of the program channel line-up changes.

The arrangement will set a precedent for the local broadcast sector.