Vol 13, Issue 16, September 09, 2009

As CMM-I prepares to launch its new CMM Headlines service, we take a look back at some of the stories that defined the first year of publication, a time when we delivered our news analysis on analogue channels via fax and dial-up modems, but also a seminal year that revealed some of the early developments that we can trace right through to today and the biggest digital multi-media market in the world.

CMM-I first launched its China Media Monitor as a subscription service at the Sichuan TV Festival in September 1997. Developed originally as an in-house service for consultancy clients, it was the first independent B2B news source to focus on analyzing the fast developing Chinese media industry and it is the only publication to continuously track all the major changes since that time.

Just how far things have come is clear from a review of the major stories from that year. Indeed, the first ever China Media Monitor reported that Chinese peasants were still busy saving up for their first ever black & white TV set with 1996 sales reaching 12.5 million units. The same year saw the introduction to China of a new home entertainment disc format called DVD, thus defining the starting point for the likely 15 year business cycle for that generation of technology in major cities. That said, of course, we can rely on countryside sales to keep rising for a few years yet!

1997 also saw a number of meaningful production related breakthroughs, including China's first ever 3D animation project, Supercop in Space, as well as the first CCTV drama co-productions with Singapore and Hong Kong. We also reported on China's first ever international pre-sales agreement, a brand new financing concept that had producers at Beijing TV Arts Center jumping for joy. Meanwhile, Shanghai Paradise Film & TV Group became the first mainland-based film and TV production company to have its application for a domestic listing approved.

The big political news of the year was the hand back of Hong Kong and, in addition to several stories relating to coverage of the historic event and productions to celebrate the occasion, we also covered news that Hong Kong-based broadcasters were to receive limited re-broadcasts in southern Guangdong province. With HK terrestrials already receiving involuntary "spill over", Phoenix TV was the first to announce its addition to Guangdong cable nets and other Mandarin language channels were to follow. It is worth noting that no further breakthroughs in domestic distribution of foreign channels have been made in the last twelve years.

Another major news story from 1997 was the confirmation by central authorities of the operating license for a new ratings enterprise called CSM. A joint-venture between TNS and CCTV-owned CVSC, the fledgling operator entered into a fierce battle with AC Nielsen to become the sole ratings provider for China, a battle it finally won at the end of 2008 when Nielsen closed its ratings service on the mainland. A long war, but one that was certainly worth winning. In 1997, P&G, with its reliance on measurements (still considered strange by many local advertisers at the time) was already dominating the adspend chart.

1997 was also the year that we saw the first moves towards the emergence of today's consolidated state-owned regional media groups when Jiangsu province boldly announced the closure or merger of 50% of the province's radio, television and cable TV stations by the following year.

Alongside pre-WTO efforts to consolidate domestic assets, CMM reported on a number of bold projects initiated by hungry foreigners that promised so much, but ended up as case studies in over-exuberance. Among the notable examples was Singapore-based Channel KTV which announced its target to reach a quarter of China's cable TV homes by 2000 and Beijing-based Max Vision which completed a deal for exclusive rights to re-transmit horse races on Chinese television.

1997 was also the year China started talking about relaxing limits on foreign ownership of movie complexes, selecting Beijing, Shanghai and Guangzhou as pilot cities. At the time, we reported that US film companies Warner and Disney were among foreign companies to express interest in investing in cinema reconstruction in China. Warner took the plunge some years later, but withdrew from the business in 2006, citing government interference. The film sector, of course, is now one of the biggest success stories in Chinese media. Another Hollywood branded project announcing its premature arrival in 1997 was MGM Gold, a 24-hour entertainment channel that sank without trace.

Another Hong Kong-based channel which thought it had "cracked" the mainland back in 1997 was Robert Chua's China Entertainment Television Broadcast Ltd (CETV), which released news that a consortium of mainland enterprises would buy an 80% stake in the HK-based satellite broadcaster. In a fatal move, CETV announced that the then CCTV President would join the Board of Directors upon his retirement. By the end of the year, Chua was announcing that CETV would have to cease operations early in the New Year unless new investors could be found.

Another frequent component of the China Media Monitor is the story of the outlandish project, the venture that seems doomed before it starts. In 1997, we reported on an unusual advertising deal cooked up by Beijing TV (BTV) and Phoenix TV in which both broadcasters offered advertisers a three-for-two discount deal with free extra primetime repeats when booking at least one 30 second spot on both networks. As we noted at the time, "the offer has apparently not had many takers and BTV has indicated that it is unlikely to enter into such agreements in the future. It is unclear what prompted the agreement in the first place".

These examples show how things have changed and also how they have not. In terms of policy and regulation, the same rules apply. From next week, CMM Headlines are sure to still carry stories on the release of politically motivated productions around historic dates and China will continue to try to influence foreign companies to become more Chinese. In 1997, China was urging Western advertisers to promote a Communist Party campaign for socialist ethics, arguing that foreign advertisers should produce public welfare announcements promoting the latest spiritual civilization campaign. Although the entreaties are more subtle these days, there is less need for public government intervention since foreign companies have learned quickly that they too are meant to make 'spiritual civilization contributions' and tend to do just enough to avoid getting collared.

While the new CMM Headlines service is designed to better meet the demands of multi-tasking executives who require fast and accurate information in concise formats that suit their mobile lives, the CMM Archives have grown into an unrivalled depository of knowledge about the history of modern media development in China.

So, if you need to track the developments in certain sectors or trace the growth of a specific company or if you just want to avoid all the previous mistakes made in the name of progress, feel free to contact us about accessing the CMM Archives. We will leave you with a selection of further indicative headlines from the bumper year of 1997.

PLAN TO CONTROL FINANCIAL NEWS DROPPED - China has made an unequivocal commitment to abandon a controversial plan to force all foreign financial news agencies to distribute information through China's government-owned wire service, according to a US trade official.

WOWOW CHANNEL IN THE DOGHOUSE - Japan Satellite Broadcasting Inc, broadcaster of the popular WoWow movie and sports channel, announced on June 19 that Shanghai authorities had enacted a ban on the company's broadcasts because of questions over copyrights and program content.

SHANGHAI RFT ANNOUNCES CAPS ON TV DRAMA PRICES - The Shanghai RFT announced in late June that the price for domestically produced television drama episodes purchased by Shanghai TV and Oriental TV must not exceed RMB20,000 (US$2,410) without special permission from the bureau.

APPLIANCE GIANTS SMOKE PEACE PIPE - 68 leading domestic appliance manufacturers have agreed not to rubbish each other's name and products in advertising campaigns by putting their signatures to the China Home Appliance Industry Civilized Competition Accord, which will take effect on October 1.

MGM OWNER ALLEGES CLINTON, JIANG WANTED MOVIE OPENING DELAYED - US President Bill Clinton persuaded Hollywood studio Metro-Goldwyn-Mayer (MGM) to delay the US release of its latest film Red Corner until after last week's summit with Chinese President Jiang Zemin, claimed an MGM owner last Thursday.

MICROSOFT LOSES AD LAWSUIT IN BEIJING - Microsoft (China) was ordered by a Beijing court on March 18 to compensate Sangxia Advertisement Co RMB200,000 (US$24,000) for copyright infringement after its draft design of a Microsoft commercial had appeared in newspapers without permission.

CHINA REPORTS A-V PIRACY SENTENCING - Two managers at Suzhou Baodie Compact Disk Company in Jiangsu have been sentenced to 17 and 11 years' jail by the Supreme People's Court. The two masterminded the piracy of 3.13 million CDs and VCDs which generated illicit sales of RMB12 million (US$1.45 million).

BTV SUES HK MAGAZINE - Beijing TV has filed a writ against Hong Kong's Front-Line magazine which it claims has libeled one of its leading presenters, damaged BTV's image and cost the station more than US$600,000 in lost advertising revenue after it published an article about Open Your Heart presenter Ms. Du Yu.

BTV HOSTESS WINS PERSONAL DAMAGES - BTV former chat show hostess Du Yu has been awarded HK$150,000 (US$19,500) in personal damages by the Hong Kong High Court, which found Hong Kong magazine Front Line guilty of libel as charged. (see CMM, September 8, 1997). Miss Du has donated the money to a Children's Welfare Unit.

CITY-LEVEL TV STATION "AUCTION KING" DEFAULTS - The People's Intermediate Court of Weifang City in Shandong is currently investigating last year's winner of its city TV station "King of Auction" title after the Weifang Taiji Group failed to make any of its monthly payments.

JIANG WEN TO COURT FOR ALLEGED BREACH OF CONTRACT? - Leading Chinese actor Jiang Wen, famous for his contribution to some of China's most acclaimed movies and the hit series Beijngers in New York, is being sued by Shenyang Outer Space Group, which counts leading liquor advertiser Qinchi Liquor among its shareholders, for alleged breach of contract.

CETV BOSS CHUA RECEIVES ANOTHER MAINLAND HONOR - China Entertainment TV channel owner, Robert Chua, has been named guest professor of Nanjing University's faculty of news and media studies. The honor, presented on July 3 by NU president Professor Jiang Shusheng, was in recognition of Chua's achievements in the media industry of the People's Republic of China.

MURDOCH TO BEAM PARTY PROPAGANDA TO THE WORLD - CMM has learned from previously reliable Chinese sources that global media magnate Rupert Murdoch's latest attempt to break into the China market involves News Corp acting as a key component in the Chinese Communist Party's plans to broadcast propaganda to viewers in the Americas and Europe.

GARLIC ADS LEAVE PLEASANT AFTERTASTE - From May 27, CCTV will run a one month series of garlic advertisements paid for by the local government of Jinxiang county in Shandong. The ads will be shown on CCTV-2, the business and economics channel and CCTV-4, the international channel.

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Feature Interview

Anke Redl, CMM-I Managing Director

Keywords: China media, events, content trade, CMM-I

China Media Monitor Intelligence (CMM-I) Managing Director Anke Redl has worked at the forefront of the world's fastest growing media industry since joining the company as a partner in 1999. Before that, she worked for the China Bureau of Reuters TV, covering major events such as the death of Deng Xiaoping and the Hong Kong handover, as well as West Deutscher Rundfunk in Cologne, Germany and FT Media & Telecoms in the UK.

As we prepare to re-launch our China Media Monitor e-newsletter as a headlines service, we asked her to share her insights into China's media industry past and present.

When was CMM-I founded? How did your business expand from publishing to consulting and events?

CMMI was established over 10 years ago. It grew organically from what as originally a trade press publishing firm into a full consultancy that focuses on the broader needs of its clients, including events organization and consulting.

On the events side, CMM-I became the exclusive Reed Midem China agent for TV in 2003. We later took on the ATF in Singapore and we also operate the International Pavilion at the Shanghai International TV Festival.

At the same time, we started working with international media companies in order to help them implement specific media projects. We also worked with Chinese companies developing projects overseas. These three areas are all inter-related, allowing us to effectively work with companies from the time they first enter the market to the successful launch of their project.

For Reed MIDEM events such as MIPTV and MIPCOM, CMM-I works closely with the Chinese media industry, including broadcast industry regulator SARFT, to develop strategies that make TV broadcasters and producers stronger overseas. As part of this, CMM-I brings delegations of up to 400 senior Chinese mainland TV execs to Cannes every year. We've also organized two major China Day events in Cannes in conjunction with SARFT.

On the consulting side, we help a lot of large international content companies to build their projects in China. Our clients have included media companies such BBC, ITV, National Geographic, Detusche Welle and German Films with various projects.

What are some of the key things that foreign media companies need to understand about the China media market?

They need to know that the media market in China is opaque and not driven by the same fundamentals as many other media markets around the world. Although the media business here is market driven, it is also highly political which influences decision making process considerably.

Many foreign media companies don't realize that while the market is very demanding in its needs, it doesn't pay very much for Western programming unless it is unique and travels across cultures. Unique top programming can demand competitive rates however Western TV dramas etc need to be adapted to work here. To be successful, companies really have to engage the market and develop programming models that specifically address China's viewing needs.

Also building relationships and networks is immensely important, but you can only achieve this if you spend a significant amount of time nurturing these contacts.

One other point to keep in mind, is highly fragmented nature of China's media market. There's no such thing as an affiliated network of TV stations. Instead there are private distributors who created their own patchwork of syndicated networks. This makes sales into the market a lot more challenging.

CMM-I helps international media organizations to exhibit at the International film and TV market at the Shanghai International Film Festival. What challenges do Chinese media organizations face when they try to sell their content abroad?

Well, they face all of the challenges I've outlined above for a start. They're also challenged to make western content relevant for the mainland market, while operating in a restrictive environment for programming imports. Documentaries work well, but Chinese buyers won't pay a lot. Feature films also work well, but the market is dominated by the United States and Asia. In fact, a lot of Chinese buyers prefer high quality content from Asia, because it has more cultural relevance than a lot of western content.

CMM-I helps to organize delegations of Chinese exhibitors to international content festivals, such as ATF, MIPTV and MIPCOM. What challenges do Chinese media organizations face when they try to sell their content abroad?

Relevance is also a big issue for Chinese exhibitors at overseas festivals. Most of the content coming out of China lacks contextual relevance for the western market because the cultural divide is still so large. Chinese producers use different story telling styles to most western producers and production values don't always meet international needs.

What major trends do you expect to emerge this year and in the near future?

I expect to see more format sales take place, though the overall number of imports this year will drop due to the propaganda push for 60th anniversary of the People's Republic of China on October 1. I also expect to see more and more Chinese companies attending international markets with increasingly sophisticated content.

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POLICY & REGULATION

SARFT Puts Limits on Inter-Station Drama Ratings Rivalry

Keywords: TV policy and regulation, content, TV dramas

BEIJING --- The State Administration of Radio, Film and TV (SARFT) has moved to stop satellite TV channels from broadcasting several episodes of the same TV drama series in one day, according to an Oriental Morning Post report on August 26.

Satellite TV channels will not be allowed to air more than six episodes from the same TV drama channels during day time hours, according to a recent SARFT directive. Channels have also been barred from airing more than two episodes of the same drama series during the prime time hours of 7pm to 9:30pm, or more than three episodes from 7pm to 1am. The total volume of TV drama episodes should not account for more than 45% of the airtime on any satellite channel on any day.

Satellite TV channels have so far only received a verbal directive on the policy change, but SARFT is expected to formalize the directive in an official document around National Day on October 1.
The move is aimed at preventing satellite TV channels from airing several episodes of a hot TV drama series in one day, an increasingly common tactic satellite TV channels have started employing in a bid to gain the ratings edge against their competitors. For example, Jiangsu Satellite TV aired up to 16 episodes of My Chief and My Regiment every day after the production company, Zhejiang Huayi Brothers Tianyi Film, sold the first round broadcast rights to three of its rival stations.

In response to the policy change, three channels - Anhui Satellite TV, Jiangsu Satellite TV and Zhejiang Satellite TV – have announced plans to produce more drama series instead of purchasing the series from independent production companies. The policy is expected to have a much more severe impact on independent TV drama production companies, as the industry is already in a state of oversupply.

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SECTOR REPORTS

Television

CCTV Unveils Timetable for HD Programming Switch

Keywords: TV content, broadcasters, HD, CCTV

BEIJING --- All CCTV channels will air high definition programming by the end of 2015, station Vice President He Zong told the Beijing International Radio, TV and Film Equipment Exhibition (BIRTV) in August.

According to the timetable He Zong outlined at the Exhibition, all CCTV channels will gradually introduce HD content over the next five years. CCTV launched the pay TV CCTV HD Movie Channel in January 2006, as well as a free-to-air terrestrial HD channel (CCTV-HD) in May 2008. The station will introduce HD programming to its flagship CCTV-1 (Comprehensive) channel from September 28 this year, in line with a recent directive from the State Administration of Radio, Film and TV (SARFT).

Six more CCTV channels - CCTV-3 (Variety), CCTV-5 (Sports), CCTV-6 (Movies), CCTV-8 (TV Drama), CCTV-10 (Science & Education) and CCTV-11 (Opera) – will started airing HD content between 2011 to 2012, according to He Zong. Four more channels will follow suit from 2013 to 2014: CCTV-2 (Economics), CCTV-7 (Military & Agriculture), CCTV-12 (Legal) and CCTV-14 (Kids).

CCTV's international channels - CTV-4 (International Mandarin), CCTV-9 (International English), CCTV-16 (Spanish), CCTV-17 (French), CCTV-18 (Arabic) and CCTV-19 (Russian) – will be the last to introduce HD content in 2015.
To meet the extra demand for HD content, He Zong said CCTV plans to start producing ten high definition programs every day. It will also expand its existing equipment and upgrade its facilities to include more HD production equipment.

CCTV's drive to introduce HD programming is line with recent policy initiatives from SARFT. Earlier this month, the TV industry regulator released a notice instructing CCTV-1 and six other flagship satellite channels - Beijing Satellite TV, Dragon TV, Jiangsu Satellite TV, Hunan Satellite TV, Heilongjiang Satellite TV and Shenzhen Satellite TV - to start airing HD content by September 28. The channels need to ensure that HD content accounts for at least 50% of their programming before the end of 2009 and 100% of their programming within 3 years.

China currently has five channels that broadcast 100% HD content: CCTV-HD, CCTV-HD Movie Channel, Shanghai New Vision HD Channel and Shenzhen HD Channel.

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China International Film & TV Programs Expo Wrap Up

Keywords: TV events, international content markets

BEIJING --- More than 400 exhibitors from China and abroad set up stalls at the 7th China International Film and TV Program Exhibition, held in Beijing from August 26 to 28. The event was organized by the State Administration of Radio, Film and TV (SARFT), China Central Television (CCTV) and the China Radio, Film and TV Exchange Center.

Unsurprisingly, CCTV and subsidiaries such as the China International Television Corporation (CITVC) and China International Communications held the most prominent stalls at the front of the exhibition hall. Shanghai Media Group (SMG), Beijing TV, Jiangsu Broadcasting Corporation and Hairun Movie and TV Corporation were amongst the other broadcast and production groups with exhibits. New Media firms such as online video company Youku and Internet portal Sina were also present.

Exhibitors from outside the mainland included Hong Kong's TVB, BBC Worldwide, Bloomberg TV, the Hong Kong Trade Development Council, Televisa Internacional and Zee Entertainment Enterprises.

A number of events were held on the sidelines of the exhibition, including a forum on national TV cooperation for Shanghai Cooperation Organization (SCO) members. Embassy representatives and the heads of TV stations from Russia, Kazakstan, Kyrgyzstan and Uzbekistan attended the forum.

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Zhejiang TV Unveils New Drama Slate, Including High School Musical Remake

Keywords: TV content, TV dramas, local adaptations

BEIJING --- Zhejiang Satellite TV will invest more than RMB80 million (US$11.71 million) on four new drama series, including local adaptations of Disney's High School Musical plus Korean TV drama series My Sassy Girl and Tactical Assault.

Station Director Chen An announced his station would focus on producing its own TV drama series in 2009, when he spoke at a TV programming forum in Beijing. Zhejiang Satellite TV established a new subsidiary called Blue Super Star Media Company on August 28 to focus on TV drama production, organize events and act as a talent agency.

Zhejiang Satellite TV has purchased the rights to create Chinese language, mainland versions of High School Musical, My Sassy Girl and Tactical Assault, according Chen An. The station will start production on High School Musical before any of the other series, drawing the lead actors from the winners of its talent show Singing and Dancing. The station also plans to launch a new talent show to find the cast for Tactical Assault in October.

The fourth major new drama series on the boards for the station will be based on Do You Remember (Wo Ai Ji Geci), Zhejiang Satellite TV's popular American Idol-style talent show. The program will star the talent show winners and be loosely based on the US sitcom Friends.

All four drama series are set to air in the 2010 summer holidays, said Chen An.

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CCTV Partners with 36 Local TV Stations for National Day Gala

Keywords: TV content, variety shows, 60th PRC anniversary

BEIJING --- State-run national broadcaster will partner with 38 local TV stations across the country to produce an ambitious variety show to celebrate the 60th anniversary of the People's Republic of China on October 1, the National Day public holiday.

Chen Lichun, the director of the 2008 Spring Festival Gala, said the 12 hour show will be produced on a larger scale than any variety show ever produced in China before. Each local station will produce a segment showcasing its regional culture and traditions. The entire program is expected to air live from 9m to 9pm.

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CCTV.com Launches Live Streaming Channels for International Viewers

Keywords: Internet content, CCTV, live streaming video

BEIJING --- CCTV.com, China Central TV's New Media arm, launched two new Mandarin language streaming TV channels targeting international viewers in August: CCTV-4 Europe and CCTV-4 America.

The launch brings the total number of live streaming channels for international viewers on CCTV.com up to six, including CCTV-4 Asia (Mandarin), CCTV-Arabic, CCTV-E (Spanish) and CCTV-F (French).

CCTV.com plans to launch live streaming versions of CCTV-4 Europe and CCTV-4 America based on Content Delivery Network (CDN) technology next, in order to offer viewers easier access and higher quality video services.

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Radio

CRI, Guangxi Foreign Radio Launch Channel for Southeast Asia

Keywords: Radio content, international channel launches

NANNING --- China Radio International (CRI) and Guangxi Foreign Radio launched a new multi-lingual radio channel targeting south-east Asian listeners on August 18, according to China News.

The Guangxi-based Beibu Radio channel broadcasts programming in Mandarin, Cantonese, English, Thai and Vietnamese. It currently airs only in the Guangxi Autonomous Region but the stations plans to extend coverage to other southeast Asian countries in the future.

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Film

Sony Pictures Classics Invests in New Zhang Yimou Film

Keywords: Domestic films, international investment

BEIJING --- Sony Pictures Classics, the art house division of Sony Pictures Entertainment, has invested in mainland director Zhang Yimou's new film, Amazing Tales: Three Guns (Sanqing Paian Jingqi).

Sony announced that it has formed a "production partnership" with Zhang Yimou but publicist Bebe Lerner declined to say how much Sony is investing. Sony has also bought the distribution rights in North America, Latin America, Australia and New Zealand. The mainland distributor, Beijing New Picture Film, told Chinese media that the film will be distributed on a minimum guarantee and profit-sharing basis.

Based on the Coen Brother's 1984 release Blood Simple, the new film will follow the story of a Chinese noodle shop owner who plots to kills his wife and her lover. Currently in production and slated for a 2010 release, Amazing Tales is Zhang Yimou's first movie since he oversaw the opening and closing ceremonies for last year's Beijing Olympics.

Sony Pictures Classics has cooperated with Beijing New Picture Film to distribute a number of Zhang Yimou's former releases, including House of Flying Daggers (Shimian Maifu) and Curse of the Golden Flower (Mancheng Jindai Huang Jinjia).

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Beijing Issues Discounts for Patriotic Films Ahead of 60th Anniversary

Keywords: Local films, policy initiatives, 60th anniversary of the PRC

BEIJING --- Beijing cinemas will issue 800,000-900,000 coupons to encourage people to watch patriotic, propaganda films released around the 60th anniversary of the People's Republic of China on October 1, according to an August 26 announcement.

From September 1 to 20, cinemas will give movie-goers one discount coupon every time they purchase a full-price ticket, under a new scheme introduced by the Beijing Municipal Bureau of Radio, Film and TV.

The coupons will allow holders to watch a mainland film or co-production for just RMB10 (US$1.46) between October 1 to November 30, a substantial discount as the average movie ticket in China costs around RMB70 (US$10.24).

A number of patriotic, propaganda films will screened in October and November as part of China's 60th birthday celebrations. The Founding of A Republic (Jianguo Daye) is one of the most highly-anticipated releases. Co-directed by China Film Group Chairman Han Sanping and Huang Jianxin, the film has an all-star cast including Jet Li, Jackie Chan, Zhang Ziyi, Chow Yun-Fat, Andy Lau, John Woo and Chen Kaige.

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Imported Films Drive Summer Holiday Takings to Record Highs

Keywords: Imported films, box office, summer holidays

BEIJING --- China's cinemas scooped more than RMB1.73 billion (US$253.29 million) at the box office over the summer holiday months of June, July and August, thanks to a swathe of popular imported releases.

Cinemas reported total box office takings of RMB630 million (US$92.24 million) in July, making it the second most profitable month of the year after January. The box office takings for June totaled RMB400 million (US$58.57 million). The summer holiday box office is expected to top RMB1.5 billion (US$219.62 million) by the end of August, a substantial gain on the RMB980 million (US$143.48 million) recorded over the same period last year.

Imported films showing in cinemas in August included Haeundae (Korea), State of Play, Up, Doraemon: Nobita and the Green Giant Legend, My Girlfriend Is a Cyborg (Korea/Japan), Transformers: Revenge of the Fallen, Ice Age: Dawn of the Dinosaurs, G.I. Joe: Rise of Cobra and Harry Potter and the Half-Blood Prince.

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Huabiao Film Awards Honor Chen Kaige, John Woo and Zhang Ziyi

Keywords: Film events, awards

BEIJING --- High profile directors Chen Kaige and John Woo joined actors Donnie Yen and Zhang Ziyi in the honors at the government-sponsored Huabiao Awards on August 29, one of the highest honors Chinese film professionals can receive in mainland China.

Sponsored by the State Administration of Radio, Film and TV (SARFT), the awards have tended to focus on propaganda films in the past. However, the rise of China's film industry has increased the focus on commercial films in recent years. This year saw increased participation from Chinese actors and directors from Hong Kong and Taiwan, including action star Jackie Chen.

The best director award went to two mainland directors: Chen Kaige for Forever Enthralled, his biopic of Peking Opera star Mei Lanfang, and Feng Xiaogang for Assembly, a film about China's civil war. Hong Kong director John Woo received the prize for an ethnic Chinese director from outside mainland China for Red Cliff, parts one and two.

The best actress award went to two mainland stars: Zhang Ziyi for her performance in Forever Enthralled and Fan Zhibo for her performance in the drama Emergency. The best ethnic Chinese actress from outside mainland China award went to Shu Qi from Taiwan for her turn in If You Are the One.

Two mainland men also shared the best actor award: Zhang Hanyu for Assembly and Guo Jingling for Yuan Longping, a biopic about the agricultural scientist who developed hybrid rice. Best ethnic actor from outside mainland China went to Hong Kong action star Donnie Yen for Ip Man.

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Print

Over 1600 Publishers to Attend BIBF

Keywords: Print events

BEIJING --- The 16th Beijing International Book Fair bucked the global financial crisis and increased in scale, according to the event organizer, China National Publications Import and Export Corporation (CNPIEC).

More than 628 mainland publishers and 1,000 international organizations set up exhibits at the far, including major publishers such as Elsevier, Springer, Harper Collins and Penguin Group. Spain, the guest of honor, is hosting a number of exciting events including forums and seminars with 15 well-known Spanish authors.

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Hangzhou Publishing Sets Up US JV with Yum! Brands

Keywords: Publishing, international expansion, US

HANGZHOU --- Huangzhou Publishing House has set up the joint venture publishing company called Huawen Publishing USA Inc with US-based Yum! Brands Inc, reports Hangzhou Daily.

The new company will publish and distribute books on traditional Chinese culture in the United States. It will also organize a series of events to promote Hangzhou to US residents, beginning with an exhibition on the city's culture and business at the end of 2009.

Yum! Brands partnered with the China Publishing Group to set up the first overseas Xinhua Bookstore, a joint venture between the two companies, in August 2008.

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New Media

Online Video Sites Flaunt SARFT Directive on Content

Keywords: Online policy and regulation, online video, licensing

BEIJING --- Mainland online video sites are brimming with illegal, pirated TV dramas from the US, Korean and Japan despite the State Administration of Radio, Film and TV's efforts to tighten control of online content in April this year, reports Guangzhou Daily.

The broadcast industry regulator issued a circular in April stating that online video sites must not host any content unless it had received a license for Internet distribution from SARFT. Popular foreign TV drama series, such as 24 and Prison Break, were outlawed from mainland video sites under the new policy. Many online video operators deleted their unlicensed content after receiving the circular, but the illegal content now is back in volume on most major sites.

To combat the flood of unlicensed and pirated content online, an unnamed industry source suggested SARFT should speed up the rate its which it vets and licenses foreign TV dramas and films so more sites can offer legitimate, copyrighted material. He said many Internet users would pay to watch licensed, copyrighted content if it offered better quality viewing at a reasonable price.

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SARFT Urged to Support Internet TV, Relax Controls

Keywords: New Media policy and regulation, Internet TV, IPTV, licensing

BEIJING --- The China Video Industry Association (CVIA) has urged the State Administration of Radio, Film and TV (SARFT) to support the Internet TV industry by relaxing recently released controls.

The broadcast industry regulator issued an August 14 circular requiring all companies offering Internet TV or IPTV services to end-users with TV sets or set-top boxes to obtain a license.

However, many Internet TV set manufacturers have asked the CVIA to petition SARFT to relax the new rules on their behalf. They say they fear they will be unable to obtain a license and sales of their equipment will be blocked as a result.

CVIA Secretary-General Bai Wemin said he believed the new SARFT policy would block the development of the IPTV industry. Instead, he asked SARFT to formulate effective measures to support, guide and regulate the industry.

The CVIA is affiliated with the Ministry of Industry and Information Technology (MIIT).

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Online Video Site 56.com Launches C2C VOD Platform

Keywords: Online video, business models

BEIJING --- Popular mainland online video site 56.com announced the launch of a new pay-to-watch channel on August 18, according to 21st Century Business Herald.

The new channel – called Kan Kan, meaning "to watch" in Chinese – will allow content producers to upload their own content, create a preview video and set the price they want to charge viewers to access their material. They will receive 90% of the revenues generated by people watching their material, while 56.com will keep the remaining 10%.

"Most video-on-demand sites are B2C sites," said 56.com CEO Wang Jianjun. "The online video site operator buys the content and then offers it to the consumer. However, our site is a C2C site. Anyone who produces content, whether they're professional or amateur, can upload it to the site and offer it to our users."

He said he hopes the new channel will provide 56.com with a much-needed new model for generating revenue.

"We can not generate profits through advertising only so we need to try other ways to make revenues," said Wang Jianjun, the CEO of 56.com.

Although the mainland online video industry has been developing for around 4 years, very few sites generate profits. Most online video sites offer free content and rely on advertising to generate revenues, creating a situation where many find it increasingly difficult to return enough profits to cover their operating costs. Advertising costs on online video sites are generally lower than advertising costs on Internet portals, although the portals are much cheaper to run.

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Advertising

SARFT Releases New Regulations on Radio and TV Ads

Keywords: Advertising policy and regulation, broadcast sector

BEIJING --- The State Administration of Radio, Film and TV will plans to increase its oversight of radio and TV ads when a new draft regulation comes into effect on January 1 next year, according to Caijing magazine.

The new regulation, released in mid-August, will replace the interim provisions SARFT released in September 2003. It introduces a number of strict new rules governing the what kind of ads may and may not be aired on mainland radio and TV.

For example, broadcasters will be banned from airing any ads for fortune-telling services or chat-lines from the start of 2010. SARFT will also impose stricter requirements on TV shopping programs, as well as ads for pharmaceutical products and financial services.

Broadcasters will also be banned from naming news and current affairs shows after their sponsors. They will also be responsible for ensuring that all the content they air complies with the new rules.

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STATISTICS

Box Office Statistics from the China Film Group

Keywords: Imported films, domestic films, co-productions, box office

Note: These box office statistics cover the week from August 24-August 30.

Rank	Screening Days	Film	Weekly Audience Numbers	Weekly Box Office Takings	Accumulated Box Office Takings	Distribution Company
1	18	Sophie's Revenge (Feichang Wanmei)	782,778	RMB24 million (US$3.51million)	RMB78 million (US$11.42 million)	CFG
2	13	Metallic Attraction：Kungfu Cyborg (Jiqi Xia)	675,195	RMB19 million (US$2.78 million)	RMB40 million (US$5.86 million)	CFG
3	24	G.I. Joe: Rise of Cobra	608,779	RMB19 million (US$2.78 million)	RMB113 million (US$16.54 million)	CFG/Huaxia
4	3	Gasp (Qichuan Xu Xu)	596,816	RMB18 million (US$2.63 million)	RMB18 million (US$2.63 million)	Enlight Media
5	27	Up	270,513	RMB12 million (US$1.76 million)	RMB78 million (US$11.42 million)	CFG Digital
6	11	Empire of Silver (Baiyin Diguo)	284,203	RMB8.60 million (US$1.26 million)	RMB15.20 million (US$2.23 million)	Polybona
7	6	Haeundae	178,021	RMB5.20 million (US$761,202.14)	RMB5.20 million (US$761,202.14)	Huaxia
8	13	State of Play	158,505	RMB5.05 million (US$739,244.38)	RMB13.65 million (US$2.00 million)	Huaxia
9	33	On His Majesty's Secret Service (Danei Mitan Lingling Gou)	101,925	RMB2.70 million (US$395,239)	RMB99.40 million (US$14.55 million)	CFG
10	6	China Idol Boys (Lehuo Nanhai)	64,532	RMB2.50 million (US$365,262)	RMB2.50 million (US$365,262)	CFG Digital

Source: CFG, from Pacific Ocean Web

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Vol 13, Issue 16, September 09, 2009

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