Television continues to be one of the most popular forms of leisure in Hong Kong. In the territory, almost all homes have at least one television, and on a typical evening, about one-third of the population watches prime-time programming. Dramas appear to be the most popular genre for Hong Kong viewers. Most television programming is produced in Hong Kong and broadcast in Cantonese, the dialect of Chinese spoken in Hong Kong and southern China. Local programming helps to perpetuate a sense of local Hong Kong identity, at times distinct from and at times integrated with a larger identification with a Chinese community. Most residents see this cultural identification with a Chinese community separately from their political identification with the PRC.

     The pervasive influence of television in Hong Kong was evident in the mediated political transition from the territory's colonial status as a subject of the British empire to its current status as a Special Administrative Region (SAR) within the PRC. Most Hong Kong residents participated in this hand-over at midnight on July 1, 1997 through viewing the ceremonies on television. The ceremony itself, orchestrated carefully for media coverage, moved from Prince Charles, declaring Britain's responsibilities to Hong Kong, to President Jiang Zemin, pronouncing Hong Kong's need for a strong PRC government. Hong Kong itself was remarkably absent from this televised account. No representative from Hong Kong, as a third party, graced the stage with British and Chinese dignitaries, neatly divided as outgoing and incoming political administrations. No flag of Hong Kong flew separately, but instead only in tandem with British and Chinese flags. Moreover, not a word of Cantonese entered this official ritual. English and Mandarin, languages represented in the former colonial and current political powers, dominated the ceremony. Hong Kong media coverage of the event hinted at the mixture of pride and concern felt by many viewers, who felt aligned with a cultural Chinese community but at odds with the particular political regimes purporting to represent them.

     This political transition, on the surface a rather peaceful, televised event, structures the more formal political boundaries within which Hong Kong residents must work. According to policies established prior to this historical event, Hong Kong should be administered by the PRC's "one country, two systems" policy, as stipulated in the 1984 Sino-British Joint Declaration. Prior to this transition, Hong Kong served as a British colony for more than 150 years. As a result of the Anglo-Chinese wars in the mid-19th century, Hong Kong Island and the southern tip of the Kowloon peninsula were ceded by China to Britain through the Treaty of Nanking in 1842 and the Convention of Peking in 1860; northern Kowloon was then leased to the British government for 99 years in 1898.

     The television industries in Hong Kong have continued to prosper, despite economic difficulties experienced in the late 1990s. Although Hong Kong's official governance system is contingent upon the PRC as its dominant political authority, Hong Kong's economic status as an arena favoring private enterprise and free trade has not diminished. In keeping with the capitalist economic climate of the territory, all television stations continue to be run as commercial enterprises.

     Subsequent to the transition to PRC rule, broadcasting regulation has actually become more laissez-faire, rather than less. Focusing on attracting investment, particularly in response to losing some international television providers to Singapore, current broadcasting ordinances have relaxed previous rules regarding nonresi­dent and cross-media ownership. In addition, prior royalties on subscription and advertising profits are no longer being charged to television service providers. Many more applicants are being awarded pay-television licenses as well, thus creating the possibilities for many more pay-television services.

     Free television in Hong Kong has remained in the hands of two terrestrial television stations, Asia Television Limited (ATV) and Television Broadcasts Limited (TVB). Each of the terrestrial stations transmits two channels. TVB broadcasts the Jade channel in Cantonese and the Pearl channel mostly in English, while ATV broadcasts the Home channel in Cantonese, and the World channel mostly in English. On the English-language stations, movies (on TVB Pearl) and documentaries (on ATV World) attract more viewers than other types of programming. Together, these stations produce 550 hours of television each week, reaching 6.5 million viewers. Controlled by a private corporation, the Lai Sun Group, ATV offers a service similar to that of its competitor, although its programming is not as popular, nor the station as wealthy, as TVB.

     TVB is by far the dominant station within the Hong Kong community. During prime-time hours, it is estimated that TVB's two stations, Jade and Pearl, command more than three-quarters of the market share of Hong Kong's viewing public. Jade, producing most of its own programming in the local language, enjoys by far the greater part of this popularity. Initiating broad­ casting in 1967, TVB was the first television station in the territory. In 1971 TVB produced its first local television program in color, a musical variety show known as Enjoy Yourself Tonight. Since then, the station has developed its technological capacity to improve the appeal of foreign programming to the Hong Kong audience. TVB operates its own Chinese character generator for subtitling and has employed a localized NICAM (Near Instantaneous Companded Audio Multiplex) system since 1991, offering viewers with equipped television sets the choice of viewing designated programs in different languages (typically, Cantonese, Mandarin, or English).

     TVB not only produces most of the programming for its Jade channel but also distributes Chinese­ language programs globally. TVB claims to be the largest producer of Chinese-language television programming in the world, distributing its products to more than 30 countries. This company has also in­vested in satellite broadcasting systems (a joint venture with MEASAT Broadcast Systems), in Internet ventures (TVB.com Limited), and in cable news services, particularly popular in Taiwan. TVB, like other television companies, is also looking toward mainland China as a future profitable market.

     The government of Hong Kong does not have its own television station, but instead requires the two terrestrial stations, TVB and ATV, to carry programming and advertisements in the public interest (APis) that its agency, Radio-Television Hong Kong (RTHK), produces. RTHK stipulates the blocks of time within which these public programs and APis must be aired. RTHK attempts to maintain editorial independence in its programming. Its shows tend to be informative in nature, illustrated in programs such as Media Watch and The Week in Politics.

     Although the free domestic television services have remained relatively constant, pay-television options have expanded a great deal. The Hong Kong Broadcasting Authority (BA) has granted licenses to five domestic pay-television services and six nondomestic pay-television services. Among the domestic services, Hong Kong Cable TV Limited carries 31 channels on fiber-optic service and another 16 on microwave service, including news, films, sports, and other channels. More than half a million households subscribe to this cable service. Nielsen ratings estimate about 1.4 million viewers of cable television during prime-time hours. Most cable programming is transmitted in Cantonese, or subtitled in Chinese if produced in another language.

     Other domestic services include a video-on-demand channel (through PCCWW VOD); satellite television (Galaxy Satellite Broadcasting Limited) through TVB, including entertainment channels in both Cantonese and Mandarin; and two digital television services (Pacifica Digital Media [HK] Corp Limited and Yes [HK] Television Limited). The Pacific Century Cyber­ works (PCCW) illustrates a growing trend toward integrating different media services. Initiated by Richard Li, PCCW is attempting to create a satellite-based broadband Internet network with television services, beginning by broadcasting satellite television channels with web content.

     Other licenses have been awarded to nondomestic pay-television service providers (such as Galaxy, APT Satellite Glory Ltd., Starbucks [HK] Ltd., Asia Plus Broadcasting Ltd., and MAT Limited), the most prominent being Star TV. Hutchison Whampoa launched this commercial system in 1991, mostly as an English-language service to the Asian region. When Rupert Murdoch's News Corporation purchased this station in 1993, approximately one-fifth of the households in Hong Kong had the capability to receive these satellite television services. Star TV's popularity grew as more local programming was introduced. From its base in Hong Kong, Star TV reaches approximately 38 countries from Egypt to Japan, and from Indonesia to Siberia. In Hong Kong, approximately 700,000 viewers watch Star TV prime-time programming, according to recent Nielsen ratings. Star TV offers Chinese programming (from Hong Kong, Taiwan, the PRC, and Japan), sports, entertainment (mostly Western programs), and a music video channel. Originally, an Asian version of Music Television (MTV) was part of the Star TV package, but this was later replaced by a local Asian broadcast known as Channel V, which divided into a Mandarin-dominated music video service for northern Asia and a Hindi-dominated music video service for western Asia. In addition to broadcasting regional productions, Channel V broadcasts videos supplied by global corporations, such as Warner Music, EMI, PolyGram, Sony, and BMG.

     Star TV had also offered the British Broadcasting Corporation (BBC) World News Service, but this channel was dropped subsequent to Murdoch's purchase, reflecting both Murdoch's bitter rivalry with the BBC in Britain and the objections raised by the PRC over a documentary the BBC had produced about the reign of Mao Zedong. Broadcast in Britain in 1993, this documentary addressed sufferings caused by Mao's failed economic policies, as well as his alleged relations with young girls. In response, the PRC government extended new restrictions on BBC operations within China. Moreover, this film was not broadcast on television in Hong Kong, despite being purchased by TVB and being approved by public censors representing the Hong Kong Film Censorship Ordinance (even though this very ordinance prohibits screening films that might damage relations with other countries). Instead, private organizations broadcast this documentary to community groups within the territory.

     In addition to canceling the BBC news channel, Murdoch's News Corporation has made other overtures toward the PRC government. It invested in the PRC's central newspaper, the People's Daily, in 1995, and a few years later forced its subsidiary Harper­ Collins to withdraw its contract to publish former Hong Kong governor Chris Patten's book, which was to include a critique of the PRC government. In addition, the Star TV service is carried through Asiasat, which serves as a source of income for the PRC government. With these political concessions News Corporation intends to ensure entry into a potentially profitable market.

     Echoing Star TV's strategy toward appeasing the state in the interest of profit, TVB has advocated similarly politically cautious approaches to its programming. In addition to choosing not to air the controversial BBC documentary on Mao it had purchased, TVB produced and broadcast a documentary chronicling Hong Kong's history that was sympathetic to PRC interests. In contrast to more politically direct programming in Taiwan, TVB programming in Hong Kong tends to avoid controversial subject matter. These strategies may be designed to pacify the government with control over potential revenue. Although many local cable operators in southern China are able to receive and relay popular TVB broadcasts, they tend to substitute local advertisements to generate local revenue. TVB's attempts to gain access to licensing and advertising fees from their broadcasts in southern China may be contingent upon a good working relationship with PRC government authorities.

     It is important to note that not all stations are as uni­formly receptive to perceived political interests. In 1994 ATV news staff resigned over a battle with their management concerning the screening of a Spanish documentary that included coverage of the 1989 Tiananmen Square massacre; this program was aired as scheduled following this well-publicized disagreement. This sort of political debate was particularly significant given the PRC's demonstrated commitment to controlling content within mainland television's industries. Regarding the mainland's own local television, PRC government officials have warned that programs ought to promote patriotism, collectivism, and socialism, but not consumerism. Although many homes (some estimate almost two-thirds of households in the southern area of China's Guangzhou province) have access to cable television services, satellite dishes are officially banned for personal use. The PRC attempts to control the influence of foreign culture by limiting the importation of foreign media; whether Hong Kong media are to be viewed as domestic or foreign is still uncertain in policy and in practice in mainland China.

     While a significant proportion of Hong Kong television is produced locally, many programs are imported from other countries, dubbed into Cantonese or subtitled in Chinese characters. Aside from importing news, entertainment series, and films from the West, most animated programs are imported from Japan, and several popular fictional series are imported from Taiwan. Some of the more popular imported programming include movies, news, and the Discovery channel.

     Although the primary objective within the Hong Kong television industry is profit, programming is monitored for "taste and decency" through the Hong Kong government's Television and Entertainment Licensing Authority and Broadcasting Authority. The BA meets monthly to review complaints raised by the public. This agency issues warnings and imposes fines against violations of license conditions. Programming standards dictate content concerning social issues, such as crime, family life, and violence, as well as suitable presentations of cigarettes and alcohol. Regulations also define permissible commercial advertising and sponsorship of programs. Recent reprimands to television stations have addressed placing advertisements for alcohol in early viewing hours, presenting factual errors, and showing corporate logos within program content. In one recent instance, TVB was fined for airing an advertisement of a driver kicking his car angrily, as depicting violence without justification and thereby constructing vandalism as an acceptable practice.

     A central feature of Hong Kong's new regulatory environment addresses the convergence of media services. Current policies encourage, rather than prohibit, cross-media ownership and attempt to establish new digital standards for high-definition television. Consequently, television broadcasters are working more closely with telecommunications companies in creating new pay-television services, such as an interactive iTV multimedia service and DTV digital entertainment service through Star TV. Recent negotiations between government officials and industry representatives aim to support a shift toward digital service that would be compatible with similar shifts in mainland China.

     While Hong Kong may be reunited with a larger "cultural China" through formal political ties, the island's economic system functions quite separately from that of the mainland. In this instance, the state apparatus chooses to privilege television's place in a market economy above its role as a political tool.