Chapter 318: Strategic Planning for the Television Industry
The Governor's advance notice might not offer much practical advantage in the coming competition for the TV license, but it still counted as a clear sign of confidence in Yang Wendong.
After returning to Changxing Tower, Yang Wendong immediately summoned Qin Zhiye from Changxing Media and Wang Zhiqun from Rongyao Electronics.
After the assistant served tea to the three of them, he left the room, leaving them in private.
"Old Qin," Yang Wendong said after taking a sip, "I've got good news for you. This morning the Governor told me that the wireless television station has been approved. The license is about to be officially announced."
"Really? That's fantastic!" Qin Zhiye said, visibly excited. "Once we have a TV station, Changxing Media will become the most influential media outlet in Hong Kong."
Without a television station, everything else was just surface-level. This had already been proven abroad.
When the economy is poor, people turn to newspapers. As things improve, radio becomes the dominant medium due to its real-time broadcasts.
But once television arrives, both radio and newspapers take a backseat.
Though radio and print would still exist, their influence and efficiency would never match TV.
Of course, TV had its drawbacks too—most notably, its fixed schedule. Unlike newspapers, which could be packed with constantly updating content, TV was bound by runtime limitations.
Still, it was clear that television's impact was far greater.
Yang Wendong shook his head and said, "Yes, the station's been approved. But the license won't be handed to us directly—we'll have to compete with other financial groups."
"Understood," Qin Zhiye nodded. "But our group is fully prepared. I've had the proposal and planning documents ready for a while now. That gives us a major advantage."
The competition would be fair, but being prepared ahead of time still gave them an edge—especially if the bidding began soon.
Yang Wendong asked, "If we win the bid, have you already picked the number and locations of the transmission towers?"
Qin Zhiye nodded. "Yes. I plan to place the main tower on Victoria Peak."
"Victoria Peak? Now that's a bold choice," Yang Wendong laughed. "That's where all the colonial elites live. Are you sure they'll allow it?"
Victoria Peak, historically called "Hard Head Mountain," and earlier known as Xianglu Peak, stood at 554 meters—Hong Kong Island's highest point.
From halfway up the mountain, one could overlook most of Hong Kong Island's commercial districts, Victoria Harbour, and the Kowloon Peninsula. That's why British colonial elites had long favored the area. Senior government officials, business moguls, and HSBC directors all resided there.
The first Chinese to live there was Ho Tung, though whether he truly counted as Chinese was still a matter of debate.
With Yang Wendong's current net worth, he could afford a villa there—but that would require timing. Properties on the Peak were rarer than commercial buildings in Central, and rarely came on the market. If he tried to force a deal, he'd be gouged mercilessly.
Qin Zhiye explained, "It's fine. The site I'm looking at is on the mountaintop, far from the mid-level residential areas. No interference.
At that height, the signal can cover all of Hong Kong Island."
"What about Kowloon?" Yang Wendong asked.
"For Kowloon's districts near Victoria Harbour, the signal still reaches," Qin Zhiye replied. "The quality might dip a bit, but I've had Japanese engineers assess it.
Most of Kowloon's major commercial zones are near the water, so the coverage should meet the majority's needs.
As for areas farther north or the New Territories, we'll wait until the population and economy grow. Then we can install another tower on a hill in the New Territories."
"Alright." Yang Wendong nodded. "Is the equipment also from Japan?"
"Yes," Qin Zhiye said. "Only Europe, the U.S., and Japan can produce broadcast equipment. Japan is cheaper and easier to work with for after-sales support."
"Then get a detailed proposal from the Japanese side. Once we win the bid, we'll go with them," Yang Wendong instructed.
In Hong Kong's bidding process—including land auctions—planning and execution were just as important as the money itself.
Real estate was simpler. As long as the proposal didn't stray too far from city planning guidelines, it was acceptable.
But for public utilities like TV stations, the standards were much higher. In many cases, the proposal mattered more than the bid amount.
"Understood," said Qin Zhiye.
"I'll handle the financing—you don't have to worry about that," Yang Wendong continued. "But this kind of project will attract many financial groups. You need to reach out to the big names in Hong Kong, especially the British firms, and invite them to participate.
I don't think they'll want control of the TV station. They're not familiar with how it works. Offer them a minority stake. We'll keep the majority and management rights."
While Yang Wendong preferred full control, public infrastructure projects like this one always drew many suitors. Going solo might backfire—it could lead major groups to ally against him, supporting a rival like Li's Group. That would lower his odds of success.
The priority now was to secure the license. Giving up some equity was fine—it was just a financial concession. In ten years, once British capital retreated, there'd be plenty of chances to buy it all back.
Qin Zhiye considered it. "Among our close British contacts, HSBC is the best bet."
"I'll talk to Saunders," Yang Wendong nodded. "We've got other projects coming up too. You just handle the rest—maybe reach out to Hang Seng and Bank of East Asia. Even if they're not interested, it wouldn't hurt to let them in for a small stake."
TVB, as it would later be known, didn't have limitless profit potential. It wasn't like the factories Yang Wendong had built from creative foresight. Letting others share in the ownership wouldn't hurt.
"Understood," Qin Zhiye nodded.
Yang Wendong turned to Wang Zhiqun. "Old Wang, now that we've got a TV station in sight, you know what we're still missing, right?"
Wang Zhiqun grinned. "Of course, Mr. Yang. What we lack is affordable televisions."
"Exactly," Yang Wendong said. "When radios were expensive, they held back the popularity of radio. Now, the same is true for TVs—and even more so, since TVs are more costly."
Wang Zhiqun replied, "I've been negotiating with RCA over the past few months. At first, they refused to share CRT manufacturing technology, but after I started talking with Thomson in France, things changed.
Thomson is willing to sell us a full tech package. That spooked RCA, so now they're more open. I'm negotiating with both for pricing, IP transfer, and supply chain support."
"What's the difference between the two?" Yang Wendong asked. "Pros and cons?"
"RCA's tech is mature and broadly compatible," Wang Zhiqun said. "Thomson has decent tech too, but French standards don't always align with international norms.
If we go with them, we'd be locked into their supply chain. Changing suppliers later would be a nightmare."
"That's not ideal," Yang Wendong frowned. "Do you know which system Japan uses?"
"American," Wang Zhiqun answered. "They initially imported tech from Europe and the U.S., but eventually settled on the American system—mostly because the U.S. is the largest market.
Later on, Japan developed its own improvements—colorization, miniaturization, etc. But the foundation is still American."
"Then we'll go with the American system," Yang Wendong decided. "Follow the mainstream—it's the safest route."
He was a time traveler, yes—but he knew nothing about CRT technology. He didn't even know the proper terminology. This was one of those non-transferable knowledge gaps.
But following the market mainstream was always a safe bet. Japan in this era hadn't yet developed its later habit of doing everything differently.
"Understood. I'll prioritize RCA. Thomson will be our backup—for price leverage," Wang Zhiqun said.
Yang Wendong asked, "Once we get the tech, can we produce CRTs in Hong Kong?"
"Some parts, yes," Wang Zhiqun said. "But not all. The four core components of a CRT are high-purity glass, phosphor powder, metal components, and getter agents.
We can process the metal components locally. The rest will have to be imported.
In the future, we might be able to make the glass in Hong Kong. But phosphor and getter production won't be feasible here."
"Can Japan produce all of these?" Yang Wendong asked.
"Yes. Japan has the full industry chain. They might still import some raw metal, but otherwise, they're self-sufficient."
"What about Taiwan?" Yang Wendong asked again.
"No," Wang Zhiqun shook his head. "Taiwan has Sampo TV, which makes radios, TVs, washing machines, etc., but it's just assembly. They import all the core components from Japan."
"Then we'll follow that model for now," Yang Wendong said. "Build an assembly plant first. Then work on localized production. For components we can't make, find multiple overseas suppliers. That way we avoid getting choked."
TV manufacturing was much more complex than radio. Full vertical integration in Hong Kong was impractical in the short term.
Partial localization would be enough. Everything else could be imported—as long as they weren't dependent on just one supplier.
Besides, in a few years, RCA would set up a major color TV plant in Taiwan, and the industry chain would develop there too. That would make things even easier later.
"Got it. I'll work on finalizing the RCA deal," Wang Zhiqun said.
Yang Wendong added, "Their production line has massive capacity. We didn't plan to buy it at first, but now that we've decided, we need to prepare our distribution network early."
The line could produce 500,000 units annually—far more than Hong Kong's market could absorb.
"Don't worry," Wang Zhiqun said. "Thanks to the mosquito swatter, we already have distribution channels in Southeast Asia. I've spoken to them. As long as the TVs are affordable and decent quality, they're willing to try them."
"Good. Looks like the mosquito swatter was worth more than we thought," Yang Wendong chuckled.
New products were always the easiest way to enter new markets—no competition, so it was easy to open conversations.
Even if the product didn't sell much, making those connections was worth it. Later, when more traditional appliances launched, they could reuse the same channels. It wouldn't guarantee placement—but it would make negotiations easier.
Of course, that initial advantage wouldn't last forever. Keeping those distributors long-term still came down to price, quality, and later on, technical innovation.
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