The National Communications Commission said it would ask China Television (CTV) to explain its plans to improve its financial situation amid a continuing loss of advertising revenue.
The terrestrial TV network has experienced a dramatic decline in advertising revenue amid the growing appeal of the Internet, commission spokesperson Wong Po-tsung (翁柏宗) said.
CTV had reduced its capital from NT$1.32 billion to NT$700 million (US$41.4 million to US$22 million at the current exchange rate), but then added NT$800 million, Wong said.
While the move was designed to erase the company’s debt, the commission wants to know how the network plans to restructure its finances and if there have been any changes to its corporate strategy now that it has NT$1.5 billion in capital, Wong said.
Founded in 1968, CTV was one of the nation’s first three TV networks.
Separately, following the passage of amendments to the Satellite Broadcasting Act (衛星廣播電視法), Radio and Television Act (廣播電視法) and the Cable Radio and Television Act (有線廣播電視法) by the Legislative Yuan earlier this year, the commission on Wednesday decided to re-examine the rules of enforcement in a bid to boost the number of locally produced TV programs, Wong said.
Article 19 of the Radio and Televsion Act, which regulates terrestrial TV networks, stipulates that locally produced programs should constitute no less than 70 percent of a station’s output. In addition, locally produced TV series that air during prime time should constitute at least 50 percent of the programming in the same category.
Prime-time hours are defined as every day from 8pm to 10pm.
The commission has proposed that 50 percent of prime-time programming on terrestrial TV channels be locally produced, of which 40 percent must be content airing for the first time.
The proposal also calls for 25 percent of satellite TV channel operators’ children’s programs broadcast between 5pm and 7pm — as well as TV shows, films or variety shows during prime time — to be locally produced, of which 40 percent must be new content.
The commission last month held a public hearing on the rules of enforcement, at which some TV stations asked how the percentage of new content would be calculated if two channels and two different platforms jointly produce content, Wong said.
As only 76 movies were aired nationwide in 2014, some movie TV channels questioned whether they would be able to meet the standards set by the commission due to limited supply, Wong said.
“Our staff will research relevant issues and determine if more complementary measures will be needed before we can enforce the rules,” he said.
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