Pulling plug on pay-TV ends the pain

There's an old saying that it is better to just get it over with, rather than prolong the agony.

The owner of Hong Kong Cable Television, the city's longest-serving cable-TV operator, demonstrated that wisdom yesterday, giving up the network's pay-TV service license six years ahead of its expiry in mid-2029.

The decision shows the owner has lost the very last bit of confidence and patience in the pay-TV business model in a digital age in which convenience and mobility are essential to the lifestyle of new generations.

Even retirees are going out more often and watching programs streamed to their smartphones with screens that get bigger and bigger.

Yes, people do still sit in front of TV boxes - but for fewer hours these days.

The lifestyle change in the new information age is fundamental, making business models relying on traditional TV viewing uncompetitive, not to mention viewing that has to be subscribed to with monthly fees.

If i-Cable Communications, which owns Hong Kong Cable TV, wanted to retain the license, it would have had to invest huge figures to upgrade content to make it highly competitive - while still facing the uncertainty that it may not succeed at all.

In the good old days, the TV license was more than a business license - it was also a symbol of importance.

When tycoon Peter Woo Kwong-ching founded Wharf Cable TV, which later became known as Hong Kong Cable TV, the billionaire expanded his empire's importance to include the soft power of influence.

More often than not, such prestige carries a hefty price tag.

Having lost money for 10 consecutive years, the network was sold to Forever Top in 2017. It changed hands again in 2021- but not before having been back to its investors for further top-ups between 2017 and 2021.

It is a truly expensive investment.

Although i-Cable - now controlled by tycoon Cheng Kar-shun via tiers of companies - has opted to give up the pay-TV license, it is keeping the brand and plans to invigorate it with a business model that stands a better chance in meeting modern needs.

A TV operator needs to either appeal to the masses or focus on cultivating a niche clientele. If successful, both can be profitable.

Were i-Cable to retain Hong Kong Cable TV's pay-TV license, it would have had to develop a niche of its own while spending within its means.

Again, it would have been a hurdle fraught with uncertainty.

It is smart of the company to keep the Cable News brand. Of all the assets Hong Kong Cable TV has developed over the years, Cable News is the most accepted icon of the network.

Although it may not make profits for the group, it can enrich it with a household brand.

With new technology coming constantly onstream, the TV operator may have to revolutionize itself again later following this shakeup.

For now, the surrender of the pay-TV license epitomizes this inevitable trend.