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Broadcasting in China

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Submitted By kthu2u
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China : A lot of press releases but not a lot of action

Production
• • • • • • • • Enlight Joy Media Huayi Brothers Qin Jia Yuan (listed) Canxing (Star TV) eeMedia (Hunan) Shixi Media China Vision Media (listed)

Network
• • • • • • • CCTV SMG Star TV Phoenix Satellite Jiangsu TV Hunan Satellite Travel Satellite
• • • • • •

Platforms
Beijing Gehua Shanghai OCN Guangzhou CATV Hunan CATV Zhejiang Huashu BesTV (IPTV)

Key Players





The Chinese broadcasting & cable TV market has experienced very strong overall growth in recent years, with a total revenue of US$19.1bn in 2011, representing a compound annual growth rate (CAGR) of 11.7% between 2007 and 2011. The performance of the market is forecast to accelerate, with an anticipated CAGR of 14.6% for the five-year period 2011 – 2016, which is expected to drive the market to a value of US$37.8bn by the end of 2016.

HH TV HH DTT HH Pay TV Pen Broadband Pen TV Adv Pay TV ARPU p.a. 5 years CAGR

411M 381M 63M 56% 38% $9.4Bn $10.7Bn $37 12% 1

China Market Trends – more detail on networks
Advertising prices (ratecard in USD per 15s)
Channel Jiangsu TV Hunan TV Peak value $36,667 $28,571

Audience ratings ranking in 2011
Channel CCTV1 (General) Hunan TV CCTV6 (Movies) CCTV5 (Sports) CCTV3 (Variety)

CCTV1 (General)
Dragon TV Liaoning TV CCTV2 (Economy) CCTV5 (Sports) CCTV3 (Variety) Dongnan TV •

$26,349
$23,810 $19,048 $17,143 $15,873 $15,524 $13,571

Jiangsu TV
Zhejiang TV CCTV-News CCTV4 (International) Anhui TV • • CCTV is supported by the Chinese government as the national champion, acting as the official media conduit Provincial channels such as Hunan TV and Zhejiang TV’s success usually stem from successful variety shows they bring in.
2



Entertainment shows typically result in top advertising income for the TV stations CCTV is still the dominant national network while the provincial satellites have seen some good growth

Competitors in China
China Warners News Corp Production
• • • • CAV Warner Home Ent 19.9% stake in Bona Film (China film producer and distributor) Collaboration with China Media Capital with CMC having a controlling stake in News Corp’s Xing Kong subsidiaries CMC also controls Canxin, the producer of the Chinese version of “the Voice” Tencent collaboration • Airing of the China version of “The Voice” on Zhejiang TV
(VOD deal “You on Demand” syndication)

FTA channels

Pay channels
Pay content through Youku-Tudou Star TV; Channel V; Phoenix TV;

Disney





Limited airing on majority of regional satellite TVs children’s channels including BTV, STV, Jiangsu TV, Guangdong TV etc

Disney Channel;

Sony Viacom

• • •

JV with subsidiary of China Film Group - the first Sino-US television and film co-production JV JV with SMG on TV production, with Nickelodeon (Viacom’s children’s channel) providing its brand and content free to the JV JV with BTV to produce Chinese language music and entertainment programmes Collaboration with China Film Group on film production, including “The Mummy – Tomb of the Dragon Emperor” Collaboration with China Intercontinental Communication Center (CICC) on production of shows including “China’s Man Made Marvels” • Limited airing on local channels including BTV-8, Dalian TV, STV Documentary Channel etc • Airing of children’s programmes on more than 30 FTA channels in China

Pay content through Youku-Tudou MTV; Nickelodeon Children’s Channel

NBC Universal Discovery

• •

CNBC Discovery channel

CBS Dreamworks (Reliance)
• JV with China Media Capital on animated production (including Kongfu Panda 3)

Conclusion China : top line message about entry ..

Production

Networks Partner • Suggestions for companies to approach or entry strategy eg • License brand • On air branded block • Channel segment • Buying into a specific company channel

• •




China’s TV industry in undergoing significant advances in production capability Acceptance to foreign formats growing Every TV station executive is searching for new and fresh ideas that will turn into the next big hit Opportunities exist in this space

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