Live Issue... Will a new owner give ATV a better competitive edge?

For almost three decades, TVB has dominated Hong Kong’s dual-broadcaster market, most recently boasting an 80 per cent share of viewers, compared with ATV’s 20 per cent. ATV, which has a long and very public history of management instability at the top level, has been accused of lacking strategic direction, and indeed it continues to lose out on advertising revenue, with monitored spend dropping from $3.3 billion in 2004 to $2.7 billion last year, in comparison to TVB’s figures - which climbed from $10.4 billion to $11.9 billion for the same period, according to AdmanGo. Across the border in Guangdong, it’s a similar story, although experts note the gap between the two is not as large.

There has been plenty of buzz surrounding the new direction ATV intends to take, and even more about the surprise announcement that former TVB heavyweight Louis Page will head ATV, along with TVB director and audit committee member Ho Ting-Kwan, who is expected to join ATV as chief operating offier. “They have solid broadcasting experience in Hong Kong and Asia. Leadership is important in this industry - real leaders attract real talent,” says Stewart Li, managing director, Carat Hong Kong.

Li notes that industry pundits expect the broadcaster, which has cut back its production capabilities in favour of purchasing content from mainland China and Taiwan, to reinvest heavily in the production of local content, one of TVB’s key strengths.

Page, it turns out, may end up being the tonic that ATV has so desperately needed. In addition to his role at TVB, he has spent much of his career involved with Shaw Brothers Hong Kong and he brings to the table strong connections with local artists through his own venture, Soft-Trek Media, a mainland-based artist management company.

Mingly Corp meanwhile, is regarded as having strong relationships with Beijing, another factor which could help ATV’s cause, particularly in its Southern China operation. “I think they will invest heavily in local production; otherwise, why hire such heavyweights?” remarks Li.

But OMD Hong Kong managing director Jackson Kwok has a different view, arguing that it’s pointless for ATV to attempt to compete with TVB on a level playing field. “In light of entrenched viewing habits, ATV should not compete head-on with TVB, which is more resourceful in terms of local production,” notes Kwok. “ATV has to differentiate itself by launching flanking programming attacks and making inroads in territory that TVB is hesitant to explore.”

But the one thing both are agreed on is the necessity for long-term stability with regard to ATV’s management structure and a commitment to a long-term strategy.