In early trading on November 28, TVB (00511) opened more than 8% higher and was up 4.03% as of press time. On the news,On November 27, TVB announced that it would reorganize its television broadcasting and e-commerce businesses and will cut more than 300 people in total, equivalent to 8% of the total number of 3,599 employees at the end of June.

TVB said it will reorganize channels and programs and launch a new comprehensive channel called "TVB+". The new channel will combine the content of the existing J2 channel and the financial and sports information channel to create a series of diversified young audience content (including drama and variety shows), sports and information programs. Through TVB+, free TV content will be combined with interactive content on its digital platforms (such as myTVSUPER and TVB social media accounts) to provide viewers with a new and rich viewing experience. Finance-related content currently broadcast on the Financial Sports Information Channel, including programs related to the Hong Kong stock market and real estate market, will be reallocated to the existing Jade Channel and the planned TVB+ channel.The company believes this will boost viewership and coverage of its financial programming, thereby increasing the value proposition for advertisers.

As a result of the restructuring reallocating production resources, overall programming hours will be reduced. The company will continue to invest heavily in prime-time production, while cutting production budgets for marginal content and discontinuing programs that do not meet audience expectations or commercial impact. therefore,In addition to the annual cost savings of HK$260 million announced in March this year and planned to be achieved by the end of this year, it is expected to save another HK$100 million in content costs in 2024. At the same time, more than 200 employees in this business segment will be reduced.

Some employees said that they felt sorry for the layoffs, but after the reorganization, with fewer programs, the quality might be better. Some employees also said that the economic outlook is uncertain and the layoffs are expected. They believe that merging channels will help pool resources and may increase ratings.

It is reported that,The above restructuring plan requires approval from the Hong Kong Communications Authority. TVB stated that it has submitted an application to the Communications Authority on November 27 and will implement the plan once approved. However, within the scope of the existing local free television program service license,Content and programs will be adjusted in stages starting from December this year, gradually transitioning to a new four-channel lineup. The company expects to know the outcome of the application in the first quarter of next year.

In terms of e-commerce business, the current online platforms "Shiduo" and "Linzhumai" will be merged, and "Shiduo" will become an integral part of the "Linzhumai" platform. By merging "Shiduo" and "Linzhumai", we can not only achieve a more capital-efficient business model, but also create a customer base that combines 1 million registered users. This restructuring plan is expected to be completed by the end of December this year.The Group expects that the annual fixed costs and operating expenses after the restructuring of the e-commerce business will be reduced by approximately HK$50 million to HK$60 million. "Shiduo"'s website and mobile application will cease operations on December 19 this year, and about 100 current "Shiduo" employees will also leave the group.

TVB said that "Neighbor Buy" will introduce higher-value luxury goods and will be more closely integrated with its subsidiary in mainland China, Nidudui, to provide Hong Kong goods and services, including dining experiences, to mainland Chinese tourists through China's live e-commerce project. Overall, these combined efforts are expected to bring significant GMV growth to Neighborsbuy over the next 3 to 5 years.

TVB Executive Chairman Xu Tao sent an internal letter to employees stating that in order to prepare for future development, two major operational restructurings will be carried out in the TV broadcasting and e-commerce businesses.It will inevitably affect the company's personnel structure, and approximately 300 employee positions will be affected.

Xu Tao pointed out that this is because the company hopes to persist in further reforms to adapt to market changes and challenges. The company is drawing a new development blueprint for TVB. While optimizing resources, it will also focus on the development of future diversified businesses and implement a sustainable cost management strategy to operate. In this moment of change,Every member of TVB must continue to provide high-quality cross-platform entertainment, news and information content to viewers and users, and ensure that TVB successfully enters a more forward-looking business model.

Xu Tao said that in the third quarter of this year, the company's free TV advertising business showed an upward trend, and the average price of TV advertising during prime time on Jade Channel increased by 46% year-on-year. Many Hong Kong and multinational blue-chip corporate customers have returned to TVB after the epidemic.At present, myTVSUPER has become the leader of OTT platforms in Hong Kong. The company's TV advertising business continues to recover and its digital advertising business is growing rapidly. TVB currently holds 80% of Hong Kong's TV audience.

In the secondary market, TVB stock prices continued to rebound at the end of October. As of press time, the cumulative increase during the period was close to 30%.