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 remain secondary incomes.
5.1 Advertising Revenue
According to the estimate of Nielsen Media Research, the advertising expenditures on television and radio19 accounted for 41.2% ($20.2 billion) and 2.7% ($1.3 billion) respectively of the estimated total $49 billion advertising expenditure in the media in 2006.
In 2006, the actual advertising revenue earned by TVB was around $2.2 billion20. The actual advertising revenues for the other licensees are not publicly available.
The share of advertising expenditure in different media in 2005 and 2006 is shown in Figure 14. Changes in the estimated advertising expenditure from 2000 to 2006 on television and radio are shown in Figure 15.
| Figure 14 : |
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Estimated Advertising Expenditure in 2005 and 2006 |
| Figure 15 : |
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Estimated Media Advertising Expenditure from 2000 to 2006 |
| 19 |
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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 and PCCW Media. Advertising expenditure on radio included the advertising expenditure on the sound broadcasting services provided by CRHK and Metro. |
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| 20 |
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According to the TVB's annual report 2006, the turnover from the terrestrial television broadcasting business segment was $2,219 million, which comprised predominantly local advertising revenue. |
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