Hong Kong media broadcaster Television Broadcasts Limited (TVB) will be retrenching 10 per cent of its approximately 3,500 employees by the end of 2019.

Company affected by demonstrations and oncoming recession

According to RTHK news, TVB Chief Executive Li Bao An issued an internal notice stating that anti-government demonstrations in Hong Kong have been ongoing for more than half a year and that an economic recession is oncoming.

The protests, which had been ongoing for more than six months since June, affected advertising, television broadcasting, newspaper and other media.

As there was presently no sign of the demonstrations stopping, the media group had a responsibility to ensure that the company survives and continues its operations.

In 2018, TVB recorded net losses of around HK$199 million (S$34.6 million), compared to a profit of HK$243.6 million (S$42.4 million) in 2017, due to a write-off on bond holdings by Chinese theatre operator SMI Holdings Group, South China Morning Post reports.

Figures released earlier also showed the economy in the third quarter shrank 3.2 per cent from the previous quarter, which had seen a drop of 0.5 per cent.

To increase cost-effectiveness, the company said it would need to restructure its processes and will be retrenching 350 employees, Sina reports.

According to Dim Sum Daily, these employees are mainly from the Stage, Sound and Light Department, Backstage and maintenance departments.

Affected employees will be notified as soon as possible before the end of the year, and compensation will be remunerated according to law.

Special remuneration will also be paid.

As for employees who are not affected by the retrenchment, discretionary bonuses will be paid on average for half a month.

TVB chairman Charles Chan Kwok Keung is also expected to step down in January 2020 after investment losses were revealed in May this year, SCMP reports.

Company's revenue also affected by Mainland competition and artistes leaving

According to Sina, TVB produces around 500 episodes of TV dramas each year, which amounts to around 1.3 episodes per day on average.

Because of the fast pace of production, there is not enough time to create new props and polish them to standard, so much so that audiences will find the same props used in different dramas over the years, resulting in great discontentment amongst viewers.

Many TVB artistes are also reportedly envious of their mainland counterparts.

Actor Luo Jialiang had once publicly stated that he had "less salary, less sleep and greater work intensity" in his 17 years at TVB.

When he was filming in mainland China, however, the rest time of actors was not only guaranteed but also noted in the contract.

Perhaps as a result of these complaints, TVB has experienced five waves of artiste departures in the past 20 years, Sina reports.

Many of these actors end up making their careers in mainland China, to TVB's dismay.

In addition to mainland competition, TVB is also facing fierce competition with Japanese, American, and Korean dramas from abroad.

What TVB is doing to improve its situation

According to TVB's 2018 financial report, annual revenue for the year was HK$4.47 billion (S$78 million).

While this was a slight increase from the HK$4.455 billion (S$77.5 million) earned in 2015, it was significantly lower than the revenue from 2011 to 2014.

In an attempt to increase its revenue and perhaps cut down on competition, TVB has been working with media platforms in mainland China on joint productions.

However, while these joint productions have brought about considerable monetary benefits, response from netizens have been mixed, with some stating that the dramas "retained the taste of Hong Kong, but lost out in innovation".

In September 2016, TVB also launched "TVB Anywhere", an overseas platform that broadcasts TVB programmes in more than 200 countries and regions such as Canada, the United Kingdom, Europe, Australia and Thailand.

Top image via Cosmopolitan HK

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