Dominant HK broadcaster shows restraint with 2006 rates
Televisionpoint.com Team
As much as Hong Kong advertisers may gripe about spending more to secure better rates on the citys leading broadcasters new ratecard, the truth is that Television Broadcasts (TVB) is simply too dominant to ignore. With the help of a string of Korean drama hits, TVB has widened the already commanding primetime lead it enjoys over rival Asia Television (ATV) this year, going from 81 per cent to 83 per cent against ATVs 17 per cent. All the top 10 rated shows this year are from the TVB stable.
Against this backdrop, its five per cent hike on standard rates for 2006 would seem remarkably restrained especially after last years rate row sparked calls for a boycott. As is the lowering of entry commitment levels for advertisers to enjoy better rates, they would only need to boost their spend by seven per cent for both the English and Chinese-language channels compared with the 12 to 15 per cent increase sought this year.
TVB has also introduced a cumulative commitment bonus for two years (2005 and 2006) for advertisers who commit to "mega upfront" schedules on the Chinese channel TVB Jade. "I believe TVB is responding to a certain extent to the competition with its introduction of the accumulative bonus," notes Mabel Leung, managing director of Starcom Hong Kong.
It may be hard-pressed for ATV to mount a serious challenge any time soon, but the return of football madness with the World Cup airing exclusively on Cable TV threatens to suck a chunk of cash out of the terrestrial channels. Neither will it help TVBs cause that Cable has refrained from increasing its rates and from asking for spending increases to extend bonus rates.
"Its simply unrealistic for TV stations like TVB to keep asking advertisers to increase their spend every year," said an agency head.
Similarly, TVBs pre-emption system granting category exclusivity to advertisers continues to rankle. The system is too opaque, agencies complain, although TVB is reportedly open to dropping pre-emption if advertisers are willing to forgo category exclusivity.
Indeed, efforts to improve on last years creative media buys initiative with product placement and sponsorship opportunities underline TVBs seriousness in nurturing a new revenue stream. Even a channel as dominant as TVB cannot afford to take its eye off the ball especially with rapid changes taking place in local media consumption habits.
As much as Hong Kong advertisers may gripe about spending more to secure better rates on the citys leading broadcasters new ratecard, the truth is that Television Broadcasts (TVB) is simply too dominant to ignore. With the help of a string of Korean drama hits, TVB has widened the already commanding primetime lead it enjoys over rival Asia Television (ATV) this year, going from 81 per cent to 83 per cent against ATVs 17 per cent. All the top 10 rated shows this year are from the TVB stable.
Against this backdrop, its five per cent hike on standard rates for 2006 would seem remarkably restrained especially after last years rate row sparked calls for a boycott. As is the lowering of entry commitment levels for advertisers to enjoy better rates, they would only need to boost their spend by seven per cent for both the English and Chinese-language channels compared with the 12 to 15 per cent increase sought this year.
TVB has also introduced a cumulative commitment bonus for two years (2005 and 2006) for advertisers who commit to "mega upfront" schedules on the Chinese channel TVB Jade. "I believe TVB is responding to a certain extent to the competition with its introduction of the accumulative bonus," notes Mabel Leung, managing director of Starcom Hong Kong.
It may be hard-pressed for ATV to mount a serious challenge any time soon, but the return of football madness with the World Cup airing exclusively on Cable TV threatens to suck a chunk of cash out of the terrestrial channels. Neither will it help TVBs cause that Cable has refrained from increasing its rates and from asking for spending increases to extend bonus rates.
"Its simply unrealistic for TV stations like TVB to keep asking advertisers to increase their spend every year," said an agency head.
Similarly, TVBs pre-emption system granting category exclusivity to advertisers continues to rankle. The system is too opaque, agencies complain, although TVB is reportedly open to dropping pre-emption if advertisers are willing to forgo category exclusivity.
Indeed, efforts to improve on last years creative media buys initiative with product placement and sponsorship opportunities underline TVBs seriousness in nurturing a new revenue stream. Even a channel as dominant as TVB cannot afford to take its eye off the ball especially with rapid changes taking place in local media consumption habits.
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