FREE-TO-AIR TV CHANNELS (Telecasts of old movies and TV programmes)

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FREE-TO-AIR TV CHANNELS:

(Telecasts of old movies and TV programmes): 3.

Mr Steve Chia Kiah Hong asked the Minister for Information, Communications and the Arts (a) what are the reasons for repeat telecasts of old movies and other TV programmes on our free-to-air TV channels lately, especially during the recent public holidays; (b) if there has been a decrease in viewership of TV programmes telecast by MediaCorp since its merger with MediaWorks; (c) how much television licence fees are collected from households annually and whether the money collected is used to buy new movies; and (d) why is the penalty fee for late payment for TV licences disproportionately high in relation to the licence fee charged.

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The Minister for Information, Communications and the Arts (Dr Lee Boon Yang): Mr Speaker, Sir, commercial entertainment TV stations regularly carry repeat programmes in their schedules as no station has the resources to run unlimited fresh programming. MediaCorp, as a commercial broadcaster, is no different.

When MediaCorp acquires its programmes, it usually does so with the licence to broadcast these programmes more than once. This enables MediaCorp to run repeats off the prime-time, which is usually in the mornings, afternoons or late at night. Repeats are also broadcasted at a later date or during public holidays and festive periods, such as Christmas and Chinese New Year. MediaCorp's repeat programmes during public holidays and festive occasions usually include perennial favourites, which is again a common practice.

Sir, the Media Development Authority does not impose any repeat restrictions on MediaCorp's programming. However, MediaCorp has to comply with public service broadcast requirements which require them to carry more than 6,500 hours of first-run Mandatory and Additional Public Service Broadcast funded programmes every year. MediaCorp clearly understands its obligations as a recipient of Public Service Broadcast funds and also the competition coming from cable TV offerings. It is well aware that, if it cannot offer viewers acceptable programming, it will lose market share. This is the law of the market.

Sir, the overall viewership of MediaCorp TV channels has remained largely unchanged following the merger of MediaCorp and MediaWorks. Compared to 2004 pre-merger viewership, Channel 5's average ratings fell minimally by about 0.1%, ie, about 4,000 viewers, in 2005. Channel NewsAsia, Central and Suria

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maintained their viewership. Channel U's average ratings dipped by 0.5%, ie, about 18,000 viewers, from 2.1% in 2004 to 1.6% in 2005. Average ratings for Channel 8, on the other hand, grew by 0.4%, ie, about 16,000 viewers, from 4% to 4.4% during the same period.

The decline in Channel U's viewership could be attributed to MediaCorp's re-positioning of the channel from a mass channel to a niche channel. Under SPH, Channel U competed directly with Channel 8 for the same mass audience. After the merger, the channel was repositioned to complement Channel 8 by targeting bilingual young adults aged 15 to 35 who are cosmopolitan in outlook.

Sir, the total collection of TV and radio licence fees was about $111 million in FY04/05. The licence fees funded more than 3,000 hours of public service programmes on TV and ensured that our local audiences have access to a significant amount of quality programmes in the four official languages. These include current affairs, information, arts and culture, local sports, local drama, children, and minority language programmes in Malay and Tamil.

The bulk of Public Service Broadcast funding is channelled towards the production of local programmes in various genres. Local programmes are costly to make but are needed to keep Singaporeans informed about issues of relevance to our society, promote better appreciation of social issues and strengthen community bonding. Some examples of Public Service Broadcast programmes supported in the past year include: "40 on 40", a documentary series which traces the significant trends and developments in Singapore over the last 40 years; "First Mums", a drama series on first-time mothers; and "Manam", a drama on the plight of those suffering from mental illness.

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Public Service Broadcast funds are also used for National and community interest programmes, such as National Day Rally and National Day Message broadcasts, to communicate critical national messages to Singaporeans. Movies shown on mass entertainment channels, such as Channels 5 and 8, are not supported with Public Service Broadcast funds, as these are generally commercially viable. However, from time to time, MDA does support foreign dramas, including movies, on the minority-language channels, such as Suria and Vasantham Central. Approximately 8% of Public Service Broadcast funding goes towards supporting foreign movies and dramas. These programmes are usually not commercially viable but are enjoyed by a significant number of viewers. They complement local programmes shown on these channels.

Sir, on the penalty fee, the TV licences for households are valid from January to December, and renewable annually by 31st January of the following year. Before the TV Licence expires, licencees would receive a combined Property Tax and TV Licence fee bill from the Inland Revenue Authority of Singapore (IRAS) or a TV Licence

Payment Advice from the MDA in December annually. Licensees have one month's grace period until 31st January to pay their licence fee of $110.

Payments can be made by cheque, via GIRO or on-line (electronic) means and cash/NETs payment at any of the 63 SingPost offices island wide. There are thus multiple convenient payment channels and ample grace period provided for licensees to pay their licence fee. Currently, about 92% of the licensees pay their TV licence fees before onset of the late payment period.

The late payment fee of $25 is about 23% of the TV licence fee. This late payment fee essentially serves as a deterrent for late payment which may

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result in the issue of a writ of summons as well as warrant of arrest against licensees. Based on past records, about 8% of licensees are served with a late payment notice and 50% of those served responded before a writ of summons is issued. I would like to point out that even at the summons stage, composition payment is offered for compounding the offence. This means that the offender can pay up the licence fee and late payment charges due as full settlement of the arrears.

Sir, our assessment is that the amount of late payment fee levied has served the intended purpose of ensuring the majority of the licensees pay their TV licence fees on time. In administering the late payment fee, due consideration is also given to licensees who may have inadvertently forgotten to pay their licence fees by the due date. Such requests for waiver of the late fees are assessed on a case-by-case basis, especially if they have been prompt in past payments. Similarly, licensees who faced financial difficulties may be offered instalment payments and even waiver of the penalty fees.

Mr Steve Chia Kiah Hong: Sir, of the amount of licence fees collected, what is the percentage that is actually used for purchase of movies versus the percentage that is used for development of local programmes? The other question is, for houseowners who are on cable and subscribing to Cable Vision, can they request to waive these licence fees because they are already paying through Cable Vision?

Dr Lee Boon Yang: Mr Speaker, Sir, as I have said, about 8% of the Public Service Broadcast fund goes towards supporting foreign movies and dramas, particularly those on minority channels where these movies are not commercially viable, in other words, they cannot attract

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sufficient advertisers to pay for the cost of screening these movies. So about 8% of PSB fund goes towards supporting these programmes.

With regard to those who are subscribers of Cable Vision, they are also able to receive through Cable Vision free-to-air channels. Therefore, they should also pay their TV licence fees like other viewers who are also watching free-to-air television channels through broadcast reception.

Mr Steve Chia Kiah Hong: Sir, can any citizen, who declares that he does not watch free-to-air television channels, ie, he just has a TV and he watches only DVDs or whatever, request not to pay these licence fees?

Dr Lee Boon Yang: Mr Speaker, Sir, if somebody has a TV receiver at home, it is extremely difficult for him to declare that he does not turn to the free-to-air channels, whether it is Channel 5, 8, Vasantham Central or Arts Central, and to waive the licence fee. As long as he possesses a TV receiver that is capable of receiving free-to-air television broadcast or television signal broadcast through the cable system, it is reasonable to expect that he should contribute to this cost of supporting the programmes that are commercially not viable to broadcast in the greater interest of society's needs.