The Independent Commission Against Corruption (ICAC) charged the men with alleged corruption, and the operation of a shell company to outsource TV productions from TVB. Other charges include forcing TVB’s popular artists to perform for low or no payment.
Chan, who laid off 212 TVB staff members last year, is also accused of failing to meet the terms of the Hong Kong Record Industry Alliance. This resulted in major Hong Kong singers pulling out of attending the annual TVB Jade Solid Gold Top 10 music awards in 2009. This caused an outcry local pop culture, and a loss of ‘face’ for TVB.
TVB has been the dominant free-to-air television station in Hong Kong. Given the neighbouring station Asia Television (ATV) has consistently underperformed of late, TVB has given the impression of enjoying a virtual monopoly in the Hong Kong market. As one of the world’s largest Chinese language entertainment production companies, and an overseas reach, it has a great degree of power over the Chinese community.
However, the wrongdoings of Chan and co are not the only issue threatening the station. The quiet competitor ATV has a new majority owner, Wang Zheng. This property tycoon from Shanghai purchased 52 per cent of ATV for a reported US$293 million, a deal backed by five state-owned companies. The local pay-TV owner PCCW has also shown interest in getting a stake in the free-to-air business.
Whether Chan is convicted of the crime or not, the accusation hasdone damage to the station’s reputation, although Chan himself could yet rise from the ashes.
Ray Rudowski, director of crisis communications for APAC at Edelman:
“I once worked for TVB Pearl as a reporter, but do not know any of the players in this case, nor have I been in touch with anyone at TVB regarding the matter. Regardless of who is involved or the outcome, the single-most important message to stakeholders is: “We’re co-operating”. This must be done to ensure the long-term viability of the business.
It’s also important that business continuity is maintained, but an organisation must be careful with that messaging. ‘Business as usual’ is simply not credible. An investigation of this type is devastating, and to brush it off or even hint that things are otherwise normal while investigators are questioning staff and reviewing records will only confuse or worry stakeholders.
That message of co-operation must be supported by actions that reassure authorities and stakeholders of the fact TVB recognises the seriousness of the issue. This ensures that, regardless of the outcome, the organisation’s commitment to transparency and high ethical conduct remains credible.
Every crisis is an opportunity. An organisation that looks at a case like this strictly in PR terms will take much longer to recover because it’s not aligning its communications with its business objectives.”
Kara Yang, executive planning director for South China at Leo Burnett HK:
“It seemed certain that Stephen Chan’s career was heading down the drain and his brand persona ruined when he was arrested by the ICAC in early March. Yet just seven days later, his image made a swift recovery with his first public appearance at a press conference.
Chan walked out complete with signature smile, happily posing for photographers before delivering his short, but well-crafted, speech. Many critics thought his words made no sense, but they achieved their probable aim — fooling us into talking about the speech, instead of the preceding controversy.
By befriending the press and using his experience to motivate others to stay calm when life faces sudden changes, he has reinforced his image of being witty, caring, and inspiring. At Hong Kong University the very next day, he preached to students the importance of integrity and truth in the workplace. His performance was so convincing that many news and blogs had only positive comments about him.
The case may have ruined Chan’s career for now, but his subsequent performance may have taken his brand image to new heights.
His now famous closing line - “The truth can’t be false, the false can’t be true” - is now the most popular ringtone in Hong Kong. ”
> TVB records a 70 per cent share of the Hong Kong terrestrial television market in terms of advertising sales.
> TVB is broadcast in Taiwan, America, Europe and Australia.
Got a view?
Email [email protected]
This article was originally published in the 8 April 2010 issue of Media.
Chan, who laid off 212 TVB staff members last year, is also accused of failing to meet the terms of the Hong Kong Record Industry Alliance. This resulted in major Hong Kong singers pulling out of attending the annual TVB Jade Solid Gold Top 10 music awards in 2009. This caused an outcry local pop culture, and a loss of ‘face’ for TVB.
TVB has been the dominant free-to-air television station in Hong Kong. Given the neighbouring station Asia Television (ATV) has consistently underperformed of late, TVB has given the impression of enjoying a virtual monopoly in the Hong Kong market. As one of the world’s largest Chinese language entertainment production companies, and an overseas reach, it has a great degree of power over the Chinese community.
However, the wrongdoings of Chan and co are not the only issue threatening the station. The quiet competitor ATV has a new majority owner, Wang Zheng. This property tycoon from Shanghai purchased 52 per cent of ATV for a reported US$293 million, a deal backed by five state-owned companies. The local pay-TV owner PCCW has also shown interest in getting a stake in the free-to-air business.
Whether Chan is convicted of the crime or not, the accusation hasdone damage to the station’s reputation, although Chan himself could yet rise from the ashes.
Brand health diagnosis
Ray Rudowski, director of crisis communications for APAC at Edelman:“I once worked for TVB Pearl as a reporter, but do not know any of the players in this case, nor have I been in touch with anyone at TVB regarding the matter. Regardless of who is involved or the outcome, the single-most important message to stakeholders is: “We’re co-operating”. This must be done to ensure the long-term viability of the business.
It’s also important that business continuity is maintained, but an organisation must be careful with that messaging. ‘Business as usual’ is simply not credible. An investigation of this type is devastating, and to brush it off or even hint that things are otherwise normal while investigators are questioning staff and reviewing records will only confuse or worry stakeholders.
That message of co-operation must be supported by actions that reassure authorities and stakeholders of the fact TVB recognises the seriousness of the issue. This ensures that, regardless of the outcome, the organisation’s commitment to transparency and high ethical conduct remains credible.
Every crisis is an opportunity. An organisation that looks at a case like this strictly in PR terms will take much longer to recover because it’s not aligning its communications with its business objectives.”
Kara Yang, executive planning director for South China at Leo Burnett HK:“It seemed certain that Stephen Chan’s career was heading down the drain and his brand persona ruined when he was arrested by the ICAC in early March. Yet just seven days later, his image made a swift recovery with his first public appearance at a press conference.
Chan walked out complete with signature smile, happily posing for photographers before delivering his short, but well-crafted, speech. Many critics thought his words made no sense, but they achieved their probable aim — fooling us into talking about the speech, instead of the preceding controversy.
By befriending the press and using his experience to motivate others to stay calm when life faces sudden changes, he has reinforced his image of being witty, caring, and inspiring. At Hong Kong University the very next day, he preached to students the importance of integrity and truth in the workplace. His performance was so convincing that many news and blogs had only positive comments about him.
The case may have ruined Chan’s career for now, but his subsequent performance may have taken his brand image to new heights.
His now famous closing line - “The truth can’t be false, the false can’t be true” - is now the most popular ringtone in Hong Kong. ”
Facts
> Chan is suspected to have cheated at least US$1.3 million from TVB.> TVB records a 70 per cent share of the Hong Kong terrestrial television market in terms of advertising sales.
> TVB is broadcast in Taiwan, America, Europe and Australia.
Got a view?
Email [email protected]
This article was originally published in the 8 April 2010 issue of Media.
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