Li Ruigang appointed as non-executive director and vice chairman of TVB
On 17 October 2016, TVB announced that Mr. Li Ruigang has been appointedas non-executive director and vice chairman. Mr. Li is the founding chairmanof CMC Capital Partners and CMC Holdings, non-executive director of WPP(WPP.L, Buy) and chairman and president of Shanghai Media Group in China.For reference, Li Ruigang was appointed as non-executive director andchairman of Shaw Brothers (953.HK, NR) on 25 October 2016.
Mr. Li stated that he will not be involved in TVB’s daily operations or informulating the direction of TV programs. Dr. Charles Chan, chairman and nonexecutivedirector of TVB, explained that Mr. Li could help TVB to expandoverseas since he is familiar with the China market and the internationalmarket. TVB needs Mr. Li’s assistance to break into the mainland market witha better understanding on some regulatory issues. CMC has valuableexperience in investments in movies, TV programs, internet and sports. Torecap, TVB has issued notes of USD500m in September 2016 to seekopportunities in new media and media projects in China and overseas.
Mr. Li’s view on the potential of TVB overseas and in the China market
Mr. Li believes TVB will have more income-generating opportunities if the HKgovernment relaxes certain advertising requirements. For instance, it couldallow more product placements in TV productions, such as those in themainland. This would likely help TV program diversification with more incomesources.
Mr. Li also pointed out that TVB owns high brand equity in Chinese society,abundant media resources (content library) and a sophisticated operationsystem. The Cantonese market alone has over 100m population in Hong Kong,Guangdong and Guangxi.
Mr. Li believes that TVB and mainland online media platforms could generatemore co-productions in the future – e.g., TVB will co-produce a TV dramatitled, ”Line Walker 2” with Tencent (700.HK, Buy). While TVB can tap theChina market, Tencent can explore the Southeast Asia market through TVB. Italso co-produced “Again at the Threshold of an Era” with iQiyi (Biqu.Qu, Hold).
My TV super reached over 1m users, on track to target
TVB also announced that in October 2016, the total user number of myTVSUPER reached 1,037,800, including 312,000 registered users registeredthrough ISPs and retailers; and 725,000 active users from mobile apps. Itexpects the number of users (via IPSs for STB and apps) to reach 1.4 million inNov 17 (TVB’s anniversary).
Source: 17 October 2016, company announcement, news