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6. Investment in Television Industry

The two domestic free television programme service licensees, ATV and TVB, have committed respectively $2.4 billion and $7 billion for their six-year investment plans for 2004 - 2009. At the end of 2005, the BA approved ATV and TVB's plans to each invest more than $400 million for digital terrestrial television in-station facilities and programming in addition to their original six-year plans. Specifically, TVB decided to upgrade its digital production centre in phases to cater also for high definition television (HDTV) productions. ATV was planning to move to a new headquarter cum production centre in Tai Po Industrial Estate in early 2007 which will be ready for digital broadcasting.

As regards the domestic pay television programme service market, i-Cable Communications Limited (i-Cable), the parent company of HKCTV, reported in its 2005 Annual Report that the capital expenditure of the group for the year amounted to $282 million with major items including investment on television production facilities and further network upgrade and expansion expenditure. i-Cable also invested in movie production together with other partners and premiered its debut production in 2006. Furthermore, PCCW Media also announced its plan to provide HDTV service.

No public information on capital investment is available for other domestic television licensees and the sound broadcasting licensees.