Sir Run Run Shaw steps down as chairman at TVB

It is not yet known who will handle Shaw's duties. Shaw's wife Mona Fong is deputy chairperson and managing director of the company, and according to media sources is already at the heart of TVB's business. One media agency head said that Shaw hardly dealt with day-to-day operations any more. “We mainly deal with Ms Fong for the operational side,” he said.

The new management faces a challenging TV environment. “TVB needs to work hard to justify its rate increment which will be up to five per cent for 2010,” one source said.

TVB will introduce a one-day-notice booking arrangement from 1 May 2010 to enable greater flexibility for advertisers with urgent campaigns. However, some agency heads are opposed to the new system, which will replace a four-day short-notice booking period. 

“It is not fair for advertisers, as TVB will charge the premium rate [for the one-day notice period]. Currently we get four days notice at a medium rate to secure [short-notice] TV spots, and we can run print ads a few days beforehand to get notice for the TV spots. We don’t think the new system is beneficial or fair to clients as it is too rushed and clients don’t like to see rising prices unless the programme ratings are really good.”

Shaw holds more than 142 million shares in TVB, representing a 32.5% stake. Of that 114 million shares are held by Shaw Brothers, of which Shaw is executive chairman, and another 27 million shares are held by the Shaw Foundation, and 1.1 million held by Fong.

Last year, Shaw looked into selling his TVB stake, but subsequently abandoned the idea.