1. Chinese Broadcasting Media Scene and its Change in the Context of Globalization Dr. Hu Zhengrong Professor, Communication University of China Research Fellow, Harvard University huzhr@cuc.edu.cn, huzhr@hotmail.com October 28, 2005

2. I.Background and Chinese Broadcasting Media Scene II. The Issues of Broadcasting Media. Discussion as Conclusion

3. I. Background and Chinese Broadcasting Media Scene

4. 1, Background A, Media in China are not companies, but government-affiliated organizations. B, Chinese media are stated-owned organizations, but financially supported by advertising. C, Ratings and circulations are the critical factors for all media in China. D, Chinese media are not network-structured.

5. The Matrix Muddle (Lieberthal, 2004) Vertical structure: Lines (tiao ) (coordination from center to locality) The four-tier media structure. Nationwide -- central government Province -- provincial government City -- municipal government County -- county government

6. Horizontal structure: Pieces (kuai, ) (coordination between different sectors) Different government organizations are in charge of different media

7. Communications sector in China State Administration of Radio, Film and TV Radio TV Film Animation State Administration Of Press and Publication Newspaper Magazine Publication Ministry of Culture Art Entertainment Ministry of Information Industry Telecom. Wireless service Broadband State Councils Information Office Online Media Internet

8. political collaborators market competitors

9. E, Three stages in the transition of Chinese media institution –Marketization ( / ): since 1978 advertisingfinancially independent Gov. subsidies: 10.7% total income (2004)

10. –Conglomeration ( ) since 1995 less efficient allocation of resources and operation 2004, Total income of entire broadcasting sector: RMB 82.472 Billion (app. US$ 10 Billion)

11. –Capitalization ( ) since 2003 non-state investment stock market multi-financing sources

12. 2, Chinese Broadcasting Media Scene A, The scale of broadcasting media sector - Radio stations: 282; TV stations: 314 Broadcasting stations: 1913. - Cable households: 116 million

13. - Radio listeners: 1.22 billion; 94.50% of population TV viewers: 1.23 billion; 95.59% of population - Total income: 82.5 billion RMB Yuan (2004) (app. $ 10 billion) Advertising income: 41.5 billion RMB Yuan Radio: 0.35 billion RMB Yuan TV: 35.1 billion RMB Yuan - Time Warner: $41.1 billion (2004)

14. B, Digitalization of broadcasting media - Digital radio and TV pay channels: 145 digitalization by the end of 2015 - DBS: 2006, 80 channels. - Mobile TV on vehicles: Beijing, 4000 buses; Shanghai, 6000 buses - IPTV, Mobile phone TV.

15. C, Structural changes in the context of culture system reform. Culture System Reform--Decree No. 21. 2003: Public service sector ( ) Business sector ( ) the core concept is to categorize media sector according to the level of ideology, locating public service sector in ideological area while business sector into the market.

16. Public service units: media outlets - news, current affairs - political information - educational content Business units: media companies - production, distribution - transmission network - advertising business - entertainment, music, movie/TV drama sports lifestyle, science… - new media: IPTV, Mobile TV,

17. D, Diversifying financing resources such as being listed at stock market Beijing Gehua Cable Network, Ltd. E, Lowering market barriers such as more international and domestic investment Production/ distribution companies, cinema chains, cable network digitalization, channel leasing, outsourcing

18. II. The Issues of Chinese Broadcasting Media

19. A, The current policy and system is still hindering broadcasting media development Control: ideology, personnel, policy B, the relationship between ownership and management unchanged client-agency system ?

20. C, Structural obstacles in the media transition: –Four-tier media structure/ Media sector structure –Sector / tier / localism protectionism –Difficulties in cross-region & cross-media businesses

21. D, Conglomeration has been stymied by its distinct purpose, means, composition and nature. –Purpose: maximization of control over media for political function –Means: government administrative push and force

22. –Composition: administrator + media outlets (bureau + stations ) –Nature: public service unit groups

23. Cases: China Media Group (CMG, ) Dec. 6, 2001June, 2005 Beijing Media Group Division between Media outlets (stations) and media business companies Beijing radio & TV stations separated from BMG

24. E, Pressures from globalization coming in and going out - More international investors local business: production, channel… - CCTV-4 (Chinese): overseas Chinese CCTV-9 (English): Viacom-13000 hotel rooms in the U.S.

25. F, The shortage of content is becoming a bottleneck for broadcasting sector. Broadcasting outlets are able to produce Less than 70% of the program needed. 30% need to be got through program exchange.

26. . Discussion

27. 1, Audience as the public are changing. A, fragmentation/ diversification - social stratification B, ascending awareness of civil rights

28. 2, the Party-state A, The core purpose: - Control: legitimacy, stability - Openness: capacity, competitiveness

29. - To consolidate the legitimacy and leading role of the Party by strengthening its institutionalized controlideological & personnel, policy over media. - To develop state-owned mainstream media to obtain the continual political stability of the Party-state

30. - To speed up the pace of commercialization by applying market mechanism to the development of media capacity and competitiveness - To provide basic and necessary media services for the public who are at the low-end of social stratification - To provide basic and necessary media services for the public who are at the low-end of social stratification

31. B, De-ideologicalization + Re-ideologicalization A problem is that for Chinas media system, the absence of convincing and new ideology will leave a space for political power and capital power to erode the public interests and value system that have already been quite vulnerable.

32. C, Ideology: public = propaganda? The policy-makers will be likely or not to find the equilibrium among the politics, the economy and the society?

33. Thank You!