The oldest TV broadcaster in Hong Kong, TVB, has laid off over 100 workers amid company restructuring and digital transformation. TVB was under fire from all sides, including the public and the staff members who criticized TVB as being heartless and inconsiderate. Is such a large-scale of redundancy Inevitable or avoidable?

Insights from TVB’s cutback

Although the traditional “Jade” remains to be the most watched platform, TVB has started new-media businesses a few years ago such as over-the-top services myTV SUPER, the social media platform Big Big Channel and the e-commerce platform Big Big Shop to maintain competitiveness. Digital platforms attract a vast viewership because they can provide any content, anytime, anywhere and on any kinds of devices, which accord with the modern lifestyle.

Digital media-driven revenue soared as reflected in statistics

According to the annual report 2017 of TVB, the revenue in the Digital new media business increased from $230M to $306M in 2017, indicating a drastic growth of 33%. Although the traditional TV broadcasting sector still observes an increase in revenue from $2,707M to $2,870M, the growth percentage of 6% is manifestly way less significant than that of the new media business. 
 

The Chairman of TVB Mr. Charles Keung acknowledged that the proliferation of content on the Internet had impacted TV consumption behavior profoundly, and the company is operating against a disruptive market as a result of rapid advancements in technology.

Demand for IT & Digital talents rises significantly

The TVB’s recent layoff serves as a digital awakening to other corporations, making them rethink work. The ultimate success of a company hinges upon the reduction of overlapping functions and the enhancement in overall efficiency through flexible resources allocation. Meanwhile, the job vacancies in digital marketing have soared over the last few years given the changing business environment.

Digital transformation is impacting every sector. IT talents are destined to become the leaders of digital transformation. Be prepared and harness your know-how by taking one of the IT courses of Venturenix LAB.