Chapter 274 Lin Haoran's Idea
Lin Haoran had not expected the reason Shao Yifu sought him out.
In his view, with Shao Yifu's abilities, managing TVB at this stage should have been a simple matter!
Thus, after becoming the major shareholder, Lin Haoran naturally intended to remain a hands-off boss, with no plans to get too involved.
For him, TVB's profits were never something he particularly cared about.
He would only utilize TVB when necessary.
Moreover, the identity of being TVB's boss could bring him certain benefits.
"Good suggestions and strategies?" Lin Haoran frowned, not speaking immediately, but sat in his chair and pondered.
"Sixth Uncle, do you have the company's financial reports? I'd like to analyze them to see if I can come up with some suggestions," Lin Haoran finally asked after a moment's thought.
"Of course, we have the financial reports, not just annual reports but monthly reports too. I'll get them for you!" Shao Yifu said, retrieving a folder from the bookshelf behind him and handing it over.
Lin Haoran took the folder and quickly flipped through it, turning straight to the last page.
The folder contained not only last year's annual report and this year's mid-year report but also monthly reports from the past two years.
The last page was the 1979 annual report for TVB.
Monthly reports were not particularly useful for analysis—after all, each month's expenses and income varied. Sometimes, several shows were filmed back-to-back in a month, naturally increasing costs and leading to temporary losses, since those shows had yet to generate revenue.
Only the annual report could provide a comprehensive overview.
Lin Haoran carefully scrutinized every figure in the annual report.
As Shao Yifu had said, TVB's revenue was almost entirely dependent on advertising, with very little income from other sources.
For instance, overseas broadcasting revenues were minimal due to low ratings abroad and the revenue-sharing process during transmission, leaving TVB with hardly anything substantial.
"Sixth Uncle, why is our income limited solely to TV advertising? Isn't there any other form of advertising revenue?" Lin Haoran asked, puzzled as he looked at the report.
"Other forms of advertising revenue? Haoran, what exactly do you mean? I don't quite understand," Shao Yifu responded, confused.
"Television ad slots are naturally the main source, but surely there are many other ways to boost advertising income?" Lin Haoran said, his mind filled with doubt.
From his memory, having grown up watching television, there had been many forms of advertising revenue aside from commercials during shows.
"Haoran, explain more specifically," Sixth Uncle asked, curiosity piqued.
"For example, most of our TVB dramas are produced internally, and there are plenty of opportunities for monetization within them.
In modern urban dramas especially, where household appliances, cars, and other products appear, we could sign sponsorship deals beforehand with companies, promising close-up shots of their products. I believe many brands would be interested.
For instance, if we're filming a police drama involving car chases, it's a perfect opportunity to promote car brands.
We could negotiate with car companies in advance, have them sponsor us, and feature their vehicles prominently during filming.
Moreover, TV stations can also collaborate with famous brands, hosting events like galas, singing contests, beauty pageants, etc.
Such collaborations not only bring sponsorship revenue but also increase audience engagement and loyalty.
Take our TVB flagship show 'Miss Hong Kong Pageant.' Simply inserting commercials during the show is a huge waste.
Since it's the most well-known and popular variety show in Hong Kong with consistently high ratings, we should secure sponsors even before the show airs.
At the event's start, we could heavily promote our sponsors. I'm sure many advertisers would be eager.
Done right, the revenue from sponsorships could rival or even exceed the income from ad slots.
Besides the 'Miss Hong Kong Pageant,' we could plan more quality variety shows, boosting viewership while gaining more program sponsors.
And apart from advertising, the dramas we produce are valuable assets.
We could license their broadcast rights to overseas TV stations and generate considerable copyright income.
With enough licensing deals, the production costs could be entirely offset by these revenues.
Furthermore, we could use the television platform to sell products directly, promoting them on TV and allowing viewers to order via phone calls, thus converting viewership into sales and profits.
That's what I can think of for now. Honestly, I believe there are countless ways for a TV station to generate income—especially as television sets become more widespread and audience exposure grows.
Traffic is money; it just depends on whether we know how to utilize it.
Diversifying revenue streams can greatly broaden the station's profitability.
Relying solely on ad slots during shows naturally leads to low overall income," Lin Haoran patiently explained, based on television programming he had seen in his previous life.
At that time, the advertising model for television was indeed very simple, only diversifying from the mid to late 1980s.
Shao Yifu listened intently, his expression changing from curiosity to shock to sudden realization.
"Haoran, inviting you here was absolutely the right decision. I've learned so much from your words. I never realized there were so many ways for a television station to profit!" Shao Yifu exclaimed.
Sixth Uncle himself was a brilliant businessman; otherwise, he wouldn't have achieved such status.
He quickly grasped and understood Lin Haoran's suggestions.
It was foreseeable that once TVB implemented these ideas, both its revenue and profits would significantly increase.
Moreover, as TV ownership became more common, advertising value would naturally rise, making TVB's future development truly promising.
At this moment, Shao Yifu felt immensely grateful he had fought hard to secure TVB's leadership.
Even if Shaw Brothers Film Company declined, he now had a solid fallback.
"I'm merely offering casual ideas. Whether they work out will depend on you, Sixth Uncle.
As you know, I'm extremely busy—I'll be traveling to the UK next week.
Of course, as a TVB shareholder, I certainly hope the station earns buckets of money—because then my own returns will increase as well," Lin Haoran smiled, not revealing that he preferred staying a hands-off owner.
In the public eye, Lin Haoran controlled multiple enterprises—Ching Chau Cement, Hongkong Electric, Towngas, Kowloon Motor Bus, Oriental Press Group, and more—so his busyness was understandable.
Thus, Shao Yifu didn't doubt his words.
He himself had felt the workload surge after taking over TVB, managing both Shaw Brothers and TVB simultaneously.
"You're still young; being busy is natural. I was the same when I was young and felt very fulfilled.
But now I'm over seventy, and I often wonder how many years I have left," Shao Yifu said sentimentally.
Perhaps he didn't know then that he would eventually live to 107 years old, becoming both one of the wealthiest and longest-living elders.
Maybe it was karmic reward for his lifetime of charitable deeds.
Lin Haoran didn't mention any of this, only smiled and changed the topic.
"Sixth Uncle, when is our next 'Miss Hong Kong Pageant' scheduled?" Lin Haoran asked curiously.
"We've already arranged it—it's planned to start on October 26. In fact, preliminary selections are already underway across Hong Kong," Shao Yifu replied.
Lin Haoran nodded. With more than two months to go, preparations were indeed necessary.
He was curious to see the famous 'Miss Hong Kong Pageant' up close.
The two chatted happily in the office, and over an hour passed unknowingly.
Finally, Lin Haoran stood to leave.
With Shao Yifu overseeing TVB, there was little for him to worry about.
Even without his intervention, TVB would still succeed.
And now, after offering so many suggestions, TVB's future revenue was bound to grow even more.
Listing on the stock market was inevitable.
Although TVB's current profits didn't particularly impress Lin Haoran, he still looked forward to a substantial market value when it went public.
Thus, if one day he no longer valued TVB's influence in the media and wanted to sell his shares, he could do so at a satisfactory price.
"Sixth Uncle, I'll leave the company matters in your capable hands. If there's anything, feel free to call me. I'll help as much as I can," Lin Haoran said with a smile before leaving.
"I know you're busy. Unless absolutely necessary, I won't bother you!" Shao Yifu laughed heartily.
"Then I'll be going now," Lin Haoran waved goodbye, ready to leave Kowloon Tong.
"Alright, go ahead. I'm going to find Director Yu and discuss implementing the suggestions you just mentioned, to see how we can further boost the company's revenue and profits!" Shao Yifu said, getting up to escort him.
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