Chapter 318: Layout of the Television Industry
Chapter 318: Layout of the Television Industry
Although the Governor’s advance notice was of little help to competing radio stations, it was a sign of “optimism” for themselves.
After returning to Changxing Building, Yang Wendong immediately called Qin Zhiye from Changxing Media and Wang Zhiqun from Honor Electronics.
The assistant made tea for the three people and left, leaving only the three people.
"Old Qin, I have good news for you." Yang Wendong drank a sip of tea and said, "The Governor of Hong Kong told me this morning that the TVB has been finalized and the license is ready to be announced."
"Really? That's great." Qin Zhiye said happily: "Once we have a TV station, our Changxing Media will become the largest media in Hong Kong."
Without a TV station, everything is fake. This has long been proven overseas.
When the economy is bad, people tend to read newspapers. When it is better, radio becomes the main channel because it can be broadcast live.
And when television came along, the other two had to take a backseat.
Although newspapers and radio stations can still exist even with the emergence of television, their influence and communication efficiency are far from comparable.
Of course, television also has its disadvantages, that is, the time is fixed, and it cannot add a lot of content like newspapers, and the content cannot be changed frequently every day, etc.
But no matter what, TV station is much better than newspapers.
Yang Wendong shook his head and said, "The TV station has confirmed it, but they will not give us a license directly. Instead, we will compete with other consortiums."
"I understand." Qin Zhiye nodded and said, "But our group is determined to acquire the TV station. I have already prepared all the information and early preparations. This is our biggest advantage."
The competition is absolutely fair, but since we have been prepared, we will definitely have some advantages. The closer the auction time is, the greater the advantage.
Yang Wendong asked: "If the TV station belongs to us, have we chosen the number and location of the signal transmission towers?"
Qin Zhiye nodded and said, "I've made my choice. I plan to put this transmission tower on the top of Mount Taiping."
"The Peak? Do you really know how to choose a location?" Yang Wendong smiled and said, "There are many British dignitaries there. Will they agree?"
The Peak, formerly known as "Hardhead Mountain" a hundred years ago, was called Xianglu Peak in ancient times. It has an altitude of 554 meters and is the highest mountain in Hong Kong Island.
Halfway up the mountain, one can overlook most of the prosperous areas of Hong Kong Island, Victoria Harbour and the Kowloon Peninsula opposite, and therefore it was favored by the early British Hong Kong dignitaries; dignitaries of the Hong Kong government, heads of foreign companies, HSBC bosses, etc. all lived here.
The first Chinese to settle here was Robert Ho Tung, but there is some controversy as to whether or not Ho Tung is considered Chinese.
With Yang Wendong's current net worth, he can afford a place on the Peak, but he needs to wait for an opportunity, because there are fewer villas on the Peak than on the Central Building, and there is no chance of selling them. If he takes the initiative to buy one, he will be asking for a rip-off.
Qin Zhiye replied: "That's okay, I plan to build it on the top of the mountain, which is far away from the mid-mountain villa area and will not interfere with each other.
Given the height of Victoria Peak, the signal is sufficient to cover Hong Kong Island.”
Yang Wendong asked again: "What about Kowloon?"
Qin Zhiye replied: "The area near Victoria Harbour in Kowloon can also receive signals, but the signal may be a little weak at times. I have asked Japanese experts to check this.
Currently, the main commercial area in the Kowloon area is still next to Victoria Harbour, so the needs of most people can be met.
As for the northern part or the New Territories, we will not consider it for the time being. When the population and economy there increase in the future, we can also choose to install signal towers on high mountains in the New Territories. "
"Okay." Yang Wendong asked again: "Is the equipment also from Japan?"
Qin Zhiye said: "Yes, the only countries that can make communication equipment are Europe, America and Japan. Choosing Japanese ones is much cheaper and easier for after-sales service."
"That's fine." Yang Wendong nodded and said, "Let the Japanese come up with a better proposal. As long as we win the bid, we can choose them."
The Hong Kong government’s auctions, including real estate, are not just sold first and then discussed later. Instead, they all require detailed follow-up development plans.
However, real estate is relatively simple. There will be no problem as long as it is not too different from the Hong Kong government's planning. However, projects like public services have much higher requirements. In many cases, planning is even more important than the amount of bidding funds.
"Okay." Qin Zhiye agreed.
Yang Wendong added: "I will be in charge of the funding, you don't have to worry about it, but many financial groups will be interested in this kind of project, so you need to visit some large financial groups in Hong Kong, especially British financial groups, and let them participate.
I don’t think these British investors will seek management rights for the TV station. They don’t understand that the cooperation model is that I will be the majority shareholder and manager, and the rest of the shares will be given to them.”
Although I want to have the best deal alone, there are bound to be many participating consortiums in this kind of public project. If I go it alone, many large consortiums will help others like Li Jia, and my chances of success will be low.
The most important thing right now is to get it first. Giving up part of the equity is just pure economic benefit. When the British capital withdraws in a dozen years, there will be plenty of opportunities to take it back.
Qin Zhiye thought and said, "The British company with which we have a good relationship is HSBC."
"I'll go talk to Sanders about this." Yang Wendong nodded and said, "There are some other cooperation opportunities later. You can contact other British companies, or Hang Seng and Bank of East Asia. If they are not interested, they can also participate a little."
TVB's future economic potential is limited, unlike a factory built with future creativity, so there is no pain in giving up shares.
"Okay." Qin Zhiye nodded. Yang Wendong looked at Wang Zhiqun again and said, "Old Wang, now that we have a TV station, you should know what else is missing, right?"
Wang Zhiqun smiled and said, "I understand, Mr. Yang. Hong Kong society is still in need of cheap televisions."
"Yes." Yang Wendong said, "When radios were more expensive, it seriously affected the radio audience. Now the same is true for televisions, and it will only be more serious because televisions are more expensive."
Wang Zhiqun replied: "I have been negotiating with RCA for the past few months. At first, they still refused to give up the production technology of picture tubes. Later, I discussed cooperation with Thomson Company of France, and they were willing to sell the whole set of technology to us.
Then RCA relented, and now I am negotiating with both companies on price, technology transfer, and some supply chain issues.”
Yang Wendong asked: "Apart from the price, are there any obvious differences between the two? Or advantages and disadvantages?"
Wang Zhiqun said: "RCA has no obvious shortcomings, and their technology is relatively mature. Thomson has a problem. Many French technologies are not compatible with international standards.
We have built a supply chain for them in Hong Kong, so we have no choice but to stick with their technology or we have to start all over again.”
"That's not good." Yang Wendong frowned and asked, "Do you know what technology the Japanese are using?"
Wang Zhiqun said: "It is also from the United States. It is said that Japan also introduced technology from Europe and the United States, and finally chose the United States, mainly because the United States is the largest market.
But later, Japan conducted research and development in many aspects, including colorization and miniaturization, so that their technology is almost catching up with or surpassing that of the United States, but the foundation is still American technology. "
"Then we should also give priority to American technology." Yang Wendong thought for a while and said, "It is the most correct thing to follow the needs of the mass market."
As a time traveler, he knew nothing about this outdated technology, cathode ray tubes. He didn't even know the name of the technology. This was a blind spot in terms of non-competitive advantage.
But it is always right to follow the popular line. Japan at this time was not as stubborn as it would be decades later, always liking to be different from others.
Wang Zhiqun agreed and said, "Okay, then I will focus on negotiating with RCA, and Thomson will be a backup to lower the price."
Yang Wendong asked again: "Then, with the technology, can we produce the core components of the cathode ray tube in Hong Kong?"
Wang Zhiqun replied: “Some parts are not available and may need to be imported. The four core components of the cathode ray tube are high-purity glass, phosphor, metal material and getter.
At present, only metal materials can be purchased and processed in Hong Kong, and the rest have to be imported.
However, if we build an industrial chain in Hong Kong in the future, high-purity glass can be produced in Hong Kong, but phosphors and getters cannot be produced in Hong Kong.”
"Do they have them in Japan?" Yang Wendong asked.
Wang Zhiqun nodded and said, "Yes, Japan can basically make these things, maybe just the most basic metal element materials, Japan may need to import them. It can be said that Japan has a complete industrial chain."
Yang Wendong thought for a moment and asked again: "Is there a TV industry chain in Taiwan?"
Wang Zhiqun shook his head and said, "No, there is a Sampo TV company in Taiwan that is engaged in communications, televisions, radios, washing machines and other businesses, but it is a complete assembly. Except for some outer shell parts, the core is imported from Japan."
Yang Wendong said, "Okay, let's do this first. We will build the assembly plant first, and then consider localizing production gradually. For some products that cannot be localized, we will try to find more suppliers overseas to balance demand and avoid being strangled by suppliers."
Televisions are much more complex than radios. It is unrealistic to carry out full industry chain production in Hong Kong in a short period of time.
If part of it can be achieved, that is enough. For the rest, we can only buy it overseas like other factories. As long as there are multiple suppliers, it is acceptable.
And as far as he knows, RCA will invest in a large color TV factory in Taiwan in a few years, and there should be a corresponding industrial chain, which will be convenient for him.
"Okay, I will reach an agreement with RCA as soon as possible." Wang Zhiqun replied.
Yang Wendong went on to say: "RCA's production line has a large capacity. We had not considered buying it before, but now that it is almost ready, with such a high capacity, we need to prepare for the channel early."
A production line with an annual output of 50 units is definitely not something Hong Kong can afford.
Wang Zhiqun said: "Don't worry about this, Mr. Yang. I have already established my own channels in Southeast Asia through electric mosquito swatters. I have also communicated with them. As long as the quality and price of our TVs are acceptable, they can try to introduce them."
"Okay, it seems that the electric mosquito swatter is really valuable." Yang Wendong smiled.
A new product is the easiest to open up new markets because there are no competitors, so it is easy to connect with various channels.
Therefore, even if the demand for electric mosquito swatters themselves is not very high, it is worth it to get to know the channel partners through this opportunity, even if it does not make money. When other normal home appliances of your own are launched in the future, I cannot say that you will be able to use these channels, but at least communication will be much more convenient than just getting to know each other.
Of course, this kind of help is limited and only effective in the initial stage. Whether the channel can be stabilized ultimately depends on price and quality, that is, cost-effectiveness, or if there is capability in the future, high technology will also be ok.
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(End of this chapter)