To nobody's surprise, Television Broadcasts (TVB) - Hong Kong's predominant terrestrial television network - has posted a year-on-year decline in operating profit for the first half of this year.

The company blamed a sluggish advertising market which, it says, is still going through the process of "consolidation", for the station's poor performance.

What many investors found surprising, or disappointing, is that TVB, which has been known for many years as the ultimate trendsetter not only in Hong Kong but also around the region, is now falling woefully behind the trend. Its signature programs, the drama series, are losing their appeal to the younger audience and its variety shows, hosted by the usual crowd of entertainers and comedians, have lost their zing.

In its statement to the Hong Kong stock exchange, TVB specifically emphasized its success in pushing its OTT (over-the-top) services under the brand names of myTV SUPER and TVB Anywhere. But no mention was made of the seemingly more urgent task of revamping its programs.

OTT is widely seen as the most effective delivery channel to reach out to the younger viewers who prefer to watch their favorite programs on their mobile devices on the go rather than on the big TV screen at home. But, there are numerous OTT service providers in Hong Kong and abroad that offer a vast variety of contents to draw the attention of young viewers.

Although TVB-produced drama series are of relatively high quality, there's nothing really special that makes them stand out among the competitors from South Korea and the Chinese mainland.

The teenage heartthrobs featured in many South Korean TV drama series may seem plasticky to you and me. But they have won the hearts and devotion of many young fans throughout the region.

The story lines of many Chinese mainland productions may not resonate with the local audience. But, they have come to appreciate the elaborate costume and authentic props of mainland TV drama series with historic themes.

To compete, TVB has to do something really special to win back the younger viewers. The old formula which worked so well in capturing the mass audience in the past is obviously not working. The fact that an upstart producing something different on a shoestring budget can pose a challenge to TVB in the ratings war has shown up the weakness of the industry's Goliath.

(HK Edition 08/26/2016 page8)