Hong Kong media behemoth, Television Broadcasts Ltd (TVB), has unveiled a sweeping restructure of its domestic business, slashing content production costs by HK$100 million/US$12.8 million in 2024, shrinking its current five channels to four, and laying off more than 200 people.

The bulk of the cost cutting will impact fringe-programming and programmes that “fall short of their desired audience or commercial impact”. 

TVB said it would continue to invest in prime-time production. 

The latest round of cost-cutting follows the HK$260-million savings unveiled in March this year. TVB said it was on track to achieve this by the end of the year.  

TVB added that the latest TV restructure, which required regulatory approval, was “another key milestone in the company’s ongoing turnaround”.

The broadcaster also said the new channels line up would “optimise viewer and user experience, enhance operating efficiency and boost revenue potential”.  

TVB currently operates five TV channels: the flagship Cantonese Jade channel, with a prime-time rating of 17.5 for the first nine months of 2023, along with the youth-skewed J2, dedicated news channel TVB News, English-language entertainment channel Pearl and TVB Finance, Sport & Information (FSI), all of which have single-digit ratings at best. 

The new structure merges J2 and FSI channels to create new TVB+ channel that will offer “new and enriched viewing experiences” by, for example, linking up with interactive content on digital platforms such as myTV Super and TVB social media accounts. 

“This will be an important step in our transition into a more digital-focused TV broadcasting business,” the company said. 

TVB+ will also serve as a testbed for experimental content and formats that are “outside the traditional mold of our Jade channel programmes”.  

The full restructuring plan requires the approval of the Communications Authority of Hong Kong. The application was submitted on Monday (27 Nov). 

The result of the application is expected in the first quarter of 2024. 

Meanwhile, TVB will implement whatever it can within the scope of its existing domestic free TV licence.  This will begin in December, and roll out in phases.  

The restructure unveiled this week also impacts TVB’s e-commerce activities, with another HK$50-60 million cut from annual fixed costs and overheads. About 100 jobs will be axed in the process.  

Two platforms – Ztore with Neigbuy – will be merged by the end of this year to “achieve a more capital-efficient business model” and to “create a combined customer base of one million registered customers”.  

The Ztore website and mobile app will cease to operate on 19 December 2023.