PCCW in online content deals
Monday, August 6, 2001
REUTERS
Pacific Century CyberWorks, which last month scaled back its once sweeping Internet ambitions, will announce on Tuesday content partnerships for online services with several firms, including Television Broadcasts (TVB).
Fonda Wong, a spokeswoman for TVB's TVB.com unit confirmed media reports that firm would reveal a content deal with PCCW, but declined to reveal any details. TVB is Hong Kong's top broadcaster.
PCCW, Hong Kong's dominant telecommunications company, has scheduled a signing ceremony for Tuesday to announce content partnerships for its planned subscription-based Chinese-language now.com.hk service.
Other likely content partners cited in media reports include Hong Kong's Commercial Radio and US-based online movie distributor, Intertainer. PCCW has said its new service would include revenue-sharing content deals. The firm declined to comment on Monday.
In early July, PCCW said it would narrow its once-global Internet focus to its home market of Hong Kong and limit spending to US$190 million this year and a total of US$100 million for the following two years.
Before his company's US$28.5 billion purchase last year of Cable & Wireless HKT, PCCW chairman Richard Li had said PCCW would spend US$1.5 billion over five years developing content for the Network of the World TV and Internet service.
But a reversal in investor sentiment towards the Internet, slower than expected consumer uptake of broadband connections, and a net loss totalling US$886 million last year forced PCCW to slash Internet spending.
Deutsche Bank analyst Nigel Coe said he also expected PCCW to announce pricing points and different levels of service at the event on Tuesday.
A potential content deal with Next Media, the listed arm of publishing tycoon Jimmy Lai, was scrapped by PCCW, according to published reports last week.
Shares in PCCW skidded 2.05 per cent by late afternoon on Monday to HK$1.91, not far off a 52-week low of HK$1.88. The stock has lost about 62 per cent so far this year.
Shares of TVB were down 1.51 per cent at HK$32.60. The counter has lost about 20.5 per cent this year.
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