ATV wins rights to broadcast in China


Li Ka-shing's Tom.com subsidiary agreed to buy 33 percent of ATV last month

HONG KONG, China -- Hong Kong's second largest broadcaster, ATV, has won approval to broadcast in China, the company confirmed on Monday.

"ATV programs have formally landed on Guangdong cable TV networks after getting approval," an executive told Reuters news agency.

The approval covers Guangdong province, which neighbors Hong Kong. It beat larger rival TVB, or Television Broadcasts, to beam into the Pearl River Delta region.

China's State Administration for Radio, Film and Television has approved the broadcast of ATV's two free-to-air channels, ATV World and ATV Home.

Guangdong and the Pearl River Delta have an estimated 100 million viewers. The advertising market is estimated at 3.5 billion yuan ($423 million).

Part of Li Ka-shing's empire

Last month, tycoon Li Ka-shing's Tom.com company agreed to pay HK$361 million ($46 million) to buy 33 percent of TV (full story).

Tom.com will become the second-largest shareholder if that sale meets with regulatory approval.

Phoenix Satellite Television Chairman Liu Changle, a former Chinese army officer, is ATV's largest shareholder, with a 46 percent stake.

ATV programs are already widely but unofficially broadcast in Guangdong. Rogue cable television operators tap the signal from Hong Kong and rebroadcast it on their service, inserting their own advertisements.

The new arrangement means ATV -- full name Asia Television -- will be able to sell its programming. It said last month that it plans to split ad sales with Chinese cable operators and that it is preparing an initial public offering.

ATV still has to finalize any licensing with Guangdong's state broadcasting bureau. But Guangdong Cable TV, the province's largest cable operator, has reportedly already agreed to carry ATV's programming legally.

The company is the fourth overseas programmer to win the right to broadcast in China, after Phoenix, Star TV and CNN's parent, AOL Time Warner.

TVB is also lobbying to get access to the mainland television market.