Photo/Taobao Live Screenshot

On the evening of March 7th, TVB started its first livestreaming marketing activity on Taobao Live, with the presence of celebrities Sharon Chan Man Chi and Moses Chan Ho. Most of the time, they used Cantonese to market, plus the special background of a Hong Kong-style seafood restaurant, some netizens said that it feels like watching a Hong Kong drama.

Can such a move on Taobao Live help curb TVB's losses?

TVB's parent company Television Broadcasts Limited recently announced that it had reached a cooperation intention with Taobao through TVBC. The two sides will cooperate to launch more than 48 livestreaming marketing events within 2023, which is expected to bring the Hong Kong-based company tens of millions of Hong Kong dollars in revenue.

Affected by the above news, Television Broadcasts Limited's stock price rose more than 51% last Friday. On March 6th, the stock rose more than 36% during the trading session, reaching a high in nearly one year. At the close, the stock rose 9.57%, closing at 6.41 Hong Kong dollars. The cumulative increase over two trading days was 66.06%.

This is not the first time that TVB tries to set foot in the livestreaming marketing industry. In April 2022, TVB opened an official account on Douyin, plus three accounts focusing on the livestreaming marketing of skincare products, food and beverage, and groceries, having had nearly 940,000 followers in total.

Founded in 1967, Television Broadcasts Limited is the most popular television media organization in Hong Kong. In recent years, TVB, which once swept Asia with many classic TV series, has continued to suffer losses, and extending its business reach to the livestreaming marketing is an important attempt to increase its profit. Since 2014, with declining profitability, Television Broadcasts Limited's  share price has fallen by 79%.

The interim report for 2022 showed that TVB reported revenue of 1.82 billion Hong Kong dollars, showing an increase of 45.82% year on year. Net loss attributable to parent company was 224 million Hong Kong dollars, showing a decrease of 20.89% year on year. The main reason for the loss was the operating costs of the television station and decline in advertising revenues.

It is noted that after opening Douyin accounts, the company's revenue from e-commerce is on the rise thanks to the popularity of TVB stars.

In the first half of 2022, the company's e-commerce revenue reached 461 million Hong Kong dollars, representing a 26-fold increase year on year and a 93.69% increase month on month.  

Market analysts believe that TVB has great viewer base in the mainland market. Choosing to market on Taobao Live can better amplify its influence and is conducive to the long-term and stable operation of TVB.