Public service broadcasting systems around the world face similar crises of declining audience share, erosion of public broadcasting identity, function overlaps with the commercial broadcasters, reduction of public funding and operation pressures arising from the digital transformation process. The public service broadcasting appears to be losing out in the burgeoning multi-media environment. In most countries, public service broadcasting is shaped by economic and technological factors. In contrast, political factors are at work in the case of Hong Kong. This article analyses the changing role of the Hong Kong Government in the development of public service broadcasting by examining the evolution of the city's quasi-public service broadcaster, the Radio Television Hong Kong (RTHK). This paper argues that RTHK is located in the centre of multi-layered political conflicts. These include conflicts arising from the "central-local" politics, incompatibility between an undemocratic government and the civil society; and tensions between the government desire of "re-nationalization" and the broadcaster's efforts to maintain editorial independence. This article also evaluates the future development of RTHK, and discusses how Hong Kong provides a unique model of public broadcasting in developed areas.