Hong Kong’s media stands at a crossroads, and how the city chooses to regulate it will shape not only the health of the industry but the vitality of “one country, two systems”. A robust, commercially viable media sector strengthens the city’s international standing. Licensing laws and regulations must therefore be treated as an integral part of efforts to build an ecosystem in which local media can grow, not just domestically but overseas.

Technological disruption has upended the economics of news and entertainment. The advertising-based model that sustained legacy outlets for decades has lost ground. It’s not all bad news. The proportion of Hong Kong respondents paying for online news increased by nearly five percentage points to 22.2 per cent, and the most common way to pay remains a direct, ongoing digital subscription or membership to a news service rather than through an aggregator. But for local Chinese-language media especially, subscription income remains stubbornly thin.

Against this backdrop, recent government moves are welcome. Hong Kong’s first five-year plan pledges to “strengthen the global reach of the mainstream media”. The government has also promised to help local media expand their networks overseas.

This week, the Executive Council renewed the free-to-air licences of TVB, HK Television Entertainment and i-Cable Hoy for 12 years. The broadcasters have committed to investing a combined HK$9.45 billion over the first six years. In return, they gain greater flexibility to air programmes in non-designated languages, reduced airtime for designated programmes, and streamlined administrative and complaint-handling procedures intended to lower compliance costs. The Communications Authority will consult the public on amendments to the industry’s code of practice before the end of the year, with implementation targeted for mid-2027. It says the review will adopt a principle-based model and remove outdated and prescriptive requirements, including, it is hoped, rigid controls on advertising placement.

These are sensible steps, but they should not be the last. The Broadcasting Ordinance dates back to 2000. Today, free-to-air broadcasters compete with internet platforms that face few equivalent obligations. Loosening some regulations can ensure fairer competition. Lee has vowed to ensure regulations keep pace with the times. The promised review of the ordinance should be comprehensive, extending from radio and television to online media.

There is a balance to strike. Licensing conditions exist to protect the public interest, and the new subtitling and local production requirements have merit. Lee’s mandate to tell “good stories of Hong Kong” may not always sit comfortably with commercial imperatives. Content that travels abroad succeeds only if it is credible to audiences spoilt for choice. Professional editorial judgment, not prescription, is what earns attention overseas.

To enhance public support for overseas expansion, alongside funds for the development of various sectors such as the movie industry, officials should consider an arm’s-length fund, to be independently administered. Such a media fund could facilitate outlets’ upgrades and technology adoption – especially the development and application of artificial intelligence, which requires substantial investment amid tech-driven competition – and extend partnerships and host meaningful events to connect Hong Kong and the world, without compromising their integrity and independence.

Besides a foreign audience with growing interest in information about China, including Hong Kong and the Greater Bay Area, there are millions of ethnic Chinese living overseas. Many have a lasting affinity for the city and are a natural audience for our media, which provide Chinese- and English-language services and events. The markets of Southeast Asia and Belt and Road Initiative countries offer room for expansion. Bilingual and well versed in both Chinese and international norms, our media are well placed to serve them.

A lighter, smarter regulatory hand can remove obstacles for businesses to innovate. The government should press ahead with an overhaul, so that Hong Kong’s media can thrive at home and compete abroad. But local media must also do their part to stay competitive besides asking for regulatory relaxation.