HONG KONG: Embattled television broadcaster Asia Television (ATV) will close three of its six digital broadcast channels but it plans to add more staff under its new reorganization plan, said ATV's Senior Vice President Kwong Hoi-ying yesterday.

Details will be revealed at a press conference today, Kwong told media when attending an event of the Hong Kong International Film and TV Market at the Hong Kong Conference and Exhibition Centre.

He stressed that the move will not affect television service to the public, saying the realigned digital television channels will air programs 24 hours a day, rather than the present program schedule which is limited to only two hours.

"We find the audience demand more quality programming when reviewing our service ... So we've decided to concentrate resources in the less number of the channels," he said.

In the first phase of the changeover, ATV will reduce its six existing channels to two, commencing April 1. The second phase goes into operation July 1, when ATV plans to launch a new, third channel. All three digital channels will offer 24-hour programming. ATV's two analogue channels will not be affected.

Commenting on media reports anticipating further staff reductions, Kwong said ATV actually will recruit new staff to meet demands of longer broadcast hours at the digital channels. He declined to specify the number of new positions involved.

In one of the most widely talked about layoffs in Hong Kong's recent history, ATV fired 207 people last month. Forty staff were chopped in an earlier layoff last November. ATV employs about 600 workers. Local newspapers had cited unnamed sources as saying another 100 employees would lose their jobs at ATV.

"We're both hiring and firing people because we need new skills ... It's like we used to need painters, now we want writers," Kwong said.

With the smallest audience of the two free-to-air television operations in Hong Kong, ATV has undergone a series of capital injections since 1998. The latest white knight to come along was Taiwan billionaire Tsai Eng-meng, the chairman of rice-cracker maker Want Want China.

No official announcement was made as to how much of a cash infusion he brought with him. But it's believed Tsai agreed to invest about HK$1 billion to sustain ATV's operations for the next three years.

ATV executive chairman Linus Cheung Wing-lam earlier denied a report that the broadcaster was losing HK$2 million a year.

He admitted, however, the company's financial difficulties are aggravated by a sharp plunge in advertising revenues amid the economic crisis.

Tsai has expressed confidence in turning ATV around by integrating resources of the ATV and the Taiwan stations he owns.

More specifically, he has said that ATV will introduce more variety shows from Taiwan. The programs enjoy high ratings on the island and have low production costs.

Also yesterday, Secretary for Commerce and Economic Development Rita Lau Ng Wai-lan said that government currently has no plan to take over ATV.

(HK Edition 03/24/2009 page1)