CCTV Latest to Reveal Separation Plans

BEIJING --- As China's TV stations grapple with the policy of separating production from broadcast (see CMM passim), China Central TV (CCTV) is the latest player to have its plans put under the microscope as news of the national network's reforms are leaked to the mainland press.

Quoting inside sources, papers including the Wen Hui Bao have reported that separation between production and broadcast began this April with CCTV-5 (Sports) and CCTV-8 (Drama) acting as trial cases. If successful, the reforms will be extended to other channels with the exception of news.

The separation of production from broadcast is the first in a three stage reform process being instigated by CCTV under the leadership of President Zhao Huayong. The second reform is to eliminate the slots with the lowest  ratings and the third is to develop multiple revenue streams rather than rely on advertising.

The paper also quoted analysts as saying that the first stage will contribute to the growth of "batches of professional TV program production companies". These companies, they say, will open the national production market to civil capital investment and play an active role as the traditional TV medium changes into a market based industry.  Despite the high sounding rhetoric, CMM-I analysts point to the large number of fundamental problems that state TV stations must overcome before they can be truly be declared separate according to international understanding of that concept.

Among the biggest problems is the basic paradox that faces all China's state TV resources. On one hand, everyone agrees that production forces must be able to develop their businesses according to market conditions. On the other hand, everyone also agrees that production forces must maintain "exceptional relationships" with state regulators and broadcasters if they are to retain their licenses and scheduled positions.

The result, say CMM-I analysts, is that a series of half measures are being instigated in many cases (see 'Guangdong TV Reforms Do Not Halt Decline of a Giant'). These quasi-independent production units may operate separately, but there is still a large jump from that to the independence that is required under international standards.

Indeed, by creating "half way production houses" in which employees are rewarded in the old ways and executive control remains with the state, TV stations are merely making it easier for top production talent to disappear into the truly independent sector which is now emerging.

With Beijing, Shanghai and Guangdong and now CCTV all moving ahead with their own versions of separation (see CMM passim), international players have yet to see the emergence of properties with real investment potential and may not do so in the short term

On the upside, even quasi-independent production units will be easier to work with on a project basis than TV stations and this does provide an opportunity to establish forward relations with key players. Indeed, for co-producers there are double benefits - partners with improved operational management systems AND special state relationships!