Digital TV allows more TV programme channels to be carried than analogue broadcasting using the same amount of frequency capacity. Under the current analogue technology, a frequency channel of 8MHz is needed for carrying one TV programme service channel. By using MPEG-2 compression technology, the same bandwidth for transmitting one analogue programme channel can accommodate at least four digital standard definition TV (SDTV) programme channels or one high definition TV (HDTV) programme channel at a time. The exact number of TV programme channels that can be carried depends on picture quality and compression technology.

ATV and TVB are required to provide DTT services by 2007. According to the implementation framework promulgated by the Government in 2004, ATV and TVB will simulcast their existing four programme channels (i.e., ATV Home, ATV World, TVB Jade and TVB Pearl) in both digital and analogue format by 2007.

ATV and TVB have also committed to launch new TV programme services on the digital platform. ATV plans to provide a hybrid digital service of high definition TV (HDTV) and multi-channel broadcasting, being four new standard definition TV (SDTV) channels (namely, trendy culture, trade news and finance, shopping information, and showbiz news) and not fewer than 14 hours of HDTV programmes per week during prime time. That is, ATV will broadcast four SDTV programme channels most of the time and switch to one HDTV channel during prime time. TVB plans to provide an HDTV channel, which will include not fewer than 14 hours per day of HDTV programmes.