The decision of Hong Kong authorities to terminate the broadcast license of one of the city’s oldest TV stations will shake its media industry, at least one industry expert said.

On Wednesday, the Hong Kong government announced that it will not renew the free-to-air license of broadcaster Asia Television after it failed to provide a restructuring plan before the deadline. 

This is the first time Hong Kong has decided against renewing a broadcast license. The broadcaster will be allowed to operate until April 1 next year. 

ATV said in a statement Wednesday morning that it was shocked and angered by the government’s decision, and will continue to fight on and will not rule out taking legal action. 

Philip Ching, a production manager at ATV, told the Global Times on Thursday that ATV staff are upset over the sudden announcement. Some of them protested outside the government headquarters on Wednesday. 

Chinese University media studies professor Clement So York-kee said the ATV decision will become an opportunity for the local media industry to start an overhaul and improve the industry’s structure. 

“ATV’s reputation has been suffering from low quality production standards, lack of public support, and a huge deficit. It has received many complaints from the public in recent years [over the lack of new productions],” said So. 

The Hong Kong government also said Wednesday that it will grant a 12-year free-to-air license to HK Television Entertainment Co., a subsidiary of PCCW Ltd. The company is owned by Hong Kong tycoon Richard Li and already operates a cable network in the city, Now TV.

So believes it may be a challenge for the newcomers to produce high-quality programs to fill 24-hours-a-day broadcasts. 

Founded in 1957, ATV is the world’s first Chinese-language broadcaster and one of Hong Kong’s two free-to-air TV stations. 

The cash-strapped broadcaster has failed to keep up salary payments to its staff and has been struggling to find a new investor. 

Its last-minute deal with its white knight, AID Partners Capital Holdings, was too late to save the ailing station, as the contract includes a condition that the transaction would be completed only if ATV’s license was renewed.