Tougher Foreign Content Import Restrictions on the Way

BEIJING --- The already restricted market for the importation of foreign TV content is about to get even tougher with a number of new policies coming down from the State Administration of Radio, Film and TV (SARFT) aimed at "supporting the development of the local production industry."

First on the slate of new policies in the pipeline is an unofficial ban on the importation of Korean and US TV dramas through the last half of this year. The impetus comes under the banner of "supporting content from around the world," but is simply aimed at curbing the runaway success in the market that Korean TV dramas have enjoyed over the past few years. US TV dramas generally draw extremely low ratings but are included in the ban so that the unofficial policy will not seem to be strictly aimed at Korea.

While no regulations or circulars will be issued, CMM-I has learned that broadcast approval licenses (guanbo xukezheng), for Korean and US TV dramas will not be denied, but will simply not be approved. Broadcast approval licenses are essentially the censorship approval process that imported programming must undergo prior to broadcast. It is a lengthy, cumbersome process many broadcasters try to avoid by only purchasing the re-broadcast rights for foreign content that has already received censorship approval.

However, that will now change.

Second on the list of new policies is a circular expected to be issued in August stipulating that all imported programming must pass censorship approval and receive a broadcast license from SARFT each and every time it airs on a new TV station.

Previously those series that had already received broadcast approval did not need to receive approval for re-broadcast, resulting in a decent market for sale of re-run programming to provincial and other local broadcasters.

SARFT officials have noted that the policy is aimed at preventing broadcasters from airing pirated programs and have classified the new policy as helping in China’s continuing drive to combat piracy. As piracy of broadcast content is fairly limited in China, the real effect of the regulations is that foreign re-runs will now be just as difficult to get approval for as new content.

The third policy statement that is likely to be issued fairly soon will affect foreign programming indirectly, albeit in a fundamental fashion.

The current practice of running domestic TV drama series in prime-time from 5:00 pm to 10:00 pm  (foreign dramas are not allowed in that timeslot) is to air four episodes back to back each night until the series is finished. SARFT is now mulling regulations that will limit broadcasters to carrying just two episodes of a drama series in prime time per evening.

The likely effect is that broadcasters will continue to air four or more episodes per night, with two in prime time and the rest immediately following. The slot immediately following prime time is generally when broadcasters air foreign series, so the new policy squeeze out preferred foreign content slots, leaving even less room for international content on Chinese channels.

While the past years have seen great interest on the part of foreign content owners in securing broadcast rights for their content in China, the fact remains that outside of co-produced programming, direct importation of foreign content will continue to be viewed with suspicion by SARFT and any successes will be cut off at the knees.