HK PCCW, TVB In Talks To Develop Pay-TV Services In HK
Dow Jones Newswires
HONG KONG -- Telecommunications and Internet company Pacific Century CyberWorks Ltd. (PCW) and Hong Kong's dominant broadcaster Television Broadcasting Ltd. (H.TEB) are in talks to develop pay-TV services in Hong Kong, a PCCW spokeswoman confirmed Wednesday.
PCCW's iTV is one of the two incumbent pay-TV operators in Hong Kong along with i-Cable Communications Ltd. (H.ICB)
However, PCCW spokeswoman Joan Wagner declined to comment on whether PCCW would invest in TVB's satellite unit, Galaxy Satellite Broadcasting, which is looking for a strategic partner. Without a partner to provide needed funding, TVB is at risk of losing its pay-TV license in Hong Kong.
TVB, which is one of five new companies awarded pay-TV licenses last July, postponed a HK$88 million payment for its license last month after failing to secure funding from its strategic investor, Malaysia's Measat Broadcast Network Systems.
Measat has said it won't proceed with its purchase of up to 40% of Galaxy, a deal worth about US$150 million.
For that reason, TVB may be forced to pull the plug on its pay-TV plans unless it can find another strategic partner, because government rules require that it have less than a 50% stake in Galaxy.
- - 11/04/01 03-00G
Of the five pay-TV license winners, Rupert Murdoch's Star TV and Hong Kong Network TV Ltd. - which is controlled by property and information technology Sino-i.com Ltd. (H.SII) - have scrapped plans to offer pay-TV services in Hong Kong.
Investors are concerned there are too many providers but too few viewers in the market.
The city's two current pay-TV operators, i-Cable, which is controlled by Wharf (Holdings) Ltd. (H.WHF), and PCCW's iTV have had difficulty in developing the local market.
While iTV remains unprofitable, i-Cable posted its first profit of HK$20 million last year since listing in 1999.
Some market watchers said either TVB and PCCW may have to give up a license to make a partnership efficient. An unsourced Hong Kong Economic Times article said Wednesday the cash-strapped companies may cooperate through a joint venture.
At around 0400 GMT (12 a.m. EDT), PCCW has gained 2% to HK$2.60, while TVB has dropped 1.1%% to HK$37.50, ahead of its full-year results to be announced later Wednesday.
-By Sonia Tsang, Dow Jones Newswires; 852-2802-7002; sonia.tsang@dowjones.com
-0- 11/04/01 04-18G
--------------------------------------------------------------------------------
URL for this Article:
interactive.wsj.com
--------------------------------------------------------------------------------
Copyright © 2001 Dow Jones & Company, Inc. All Rights Reserved.
Printing, distribution, and use of this material is governed by your Subscription Agreement and copyright laws.
For information about subscribing, go to wsj.com
Used with permission of wsj.com |
