HK Terrestrial TV Goes Digital

June 8, 2007 at 2:36 am Leave a comment

Candy (MindShare, Regional Team) writes:

By this year end, both ATV and TVB will adopt mainland China’s national standard to transmit digital programmes to 40 to 50 percent of households, according to South China Morning Post.

The coverage will go up to 75% by 2008 and full digitalization will take place no later than 2012.

With digital broadcast, there will be 8 more free channels such as business, entertainment news and TV shopping accessible by viewers who can even experience the surround sound and high resolution images if their TVs are HD compatible.

That says HK’s TV landscape is likely to experience a big switch which may have far-reaching impact to media agencies, advertisers and the overall media industry.

Some implications/food for thought:

1) Will it accelerate TV inflation as broadcasters need to find ways to cover the huge investment cost for building transmission stations and producing digital programmes?

2) The datacasting and interactive capabilities of digital broadcast ideally can provide advertisers and media agencies a creative, engaging and measurable communication platform in reaching the consumers. While current Pay TV can do the same, it is less promising than Terrestrial TV in terms of audience delivery. With so many benefits going along with Terrestrial TV’s digital broadcast, will it invite reallocation of existing communication budget to put more behind it? And if the pie is fixed, which medium/media will suffer?

3) Will the new channels that provide more targeted programming be able to attract irregular TV viewers? Is the TAM system geared up to capture this coming change?

4) On the social side, will it narrow the “digital divide” with this sophisticated communication platform easily and readily made available to the mass by just a few hundred HK dollars to get the digital receiver?

Entry filed under: hong kong, television.

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