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5. Broadcasting Revenues

5.1 Advertising Revenue5.2 Subscription Revenue

There are two main sources of revenues for the provision of broadcasting services, viz. advertising and subscription. The incomes of domestic free television programme service licensees and sound broadcasting licensees mainly come from sales of advertising spots within programme breaks. The domestic pay television programme service licensees, on the other hand, derive their incomes mainly from subscription fees while sales of advertising spots are secondary incomes.

5.1 Advertising Revenue

According to the estimate of Nielsen Media Research, the advertising expenditures on television and radio16 accounted for 41% ($18.6 billion) and 2.6% ($1.2 billion) respectively of the estimated total $45.5 billion advertising expenditure in the media in 2005.

In 2005, the actual advertising revenue earned by TVB was around $2.2 billion17. The actual advertising revenues for the other licensees are not publicly available.

The share of advertising expenditure in different media in 2004 and 2005 is shown in Figure 14. Changes in estimated advertising expenditure from 2000 to 2005 on television and radio are shown in Figure 15.

Figure 14 :   Estimated Advertising Expenditure in 2004 and 2005


Figure 15 :   Estimated Media Advertising Expenditure from 2000 to 2005


The advertising expenditure was measured based on published rate cards. Actual expenditure might differ because the discounted rates were not taken into account. Advertising expenditure on television includes the advertising expenditure on domestic free television programme services and the domestic pay television programme service provided by HKCTV.


According to the TVB's annual report 2005, the turnover from the terrestrial television broadcasting business segment was $2,236 million, which comprised predominantly local advertising revenue.