The State Administration of Press Publications Radio Film and Television (SAPPRFT) came down hard today on China's growing market for Over-The-Top (OTT) television service providers.
There currently exist 7 companies licensed by SAPPRFT to sell Internet enabled set-top-boxes in China that allow for content to be streamed directly to television sets. Those companies are China Network Television, Shanghai Media Group, Wasu , Southern Media Corp., Hunan Television, China Radio International and China National Radio.
Local reports have SAPPRFT re-iterating to those players that they may not provide direct access to online video sites such as Youku-Tudou through their interface, nor may they offer foreign content provided by online video websites that has not been specifically approved by SAPPRFT. The companies have a deadline of July 21 to remove these links and any 'unauthorized' content.
The move sheds doubt on the longevity of a number or recent partnerships announced by Hollywood players with these companies. For example, Lionsgate announced two days ago a tie up with Alibaba for subscription streaming service for mainland China that will offer the “Twilight” films, “The Hunger Games: Catching Fire,” “Divergent” and “Mad Men.” A press release issued by Lionsgate noted the service would be called Lionsgate Entertainment World, and will be available in August exclusively through Alibaba’s set-top box.
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