Chinese Broadcasting Media Scene and its Change in the

Context of Globalization

Dr. Hu Zhengrong

Professor, Communication University of ChinaResearch Fellow, Harvard University

huzhr@cuc.edu.cn, huzhr@hotmail.comOctober 28, 2005

I. Background and Chinese Broadcasting Media Scene

II. The Issues of Broadcasting Media

Ⅲ. Discussion as Conclusion

I. Background and Chinese Broadcasting Media Scene

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.

The Matrix Muddle (Lieberthal, 2004)

Vertical structure: Lines (tiao 条 ) (coordination from center to locality)

The four-tier media structure. Nationwide -- central government Province -- provincial

government City -- municipal government County -- county government

Horizontal structure: Pieces (kuai, 块 )(coordination between different sectors)

Different government organizations are in charge of different media

Communications sector in China

State Administration

of Radio, Film and TV

Radio TV

Film Animation

StateAdministrationOf Press andPublication

NewspaperMagazine

Publication

Ministry of Culture

ArtEntertainment

Ministry ofInformation

Industry

Telecom.Wireless service

Broadband

State Council’s

Information Office

Online MediaInternet

political collaborators market competitors

E, Three stages in the transition of Chinese media institution

– Marketization ( 市场化 /产业化 ): since 1978

advertising—financially independent

Gov. subsidies: 10.7% total income (2004)

– Conglomeration ( 集团化 )： since 1995 less efficient allocation of resources and

operation

2004, Total income of entire broadcasting sector:

RMB 82.472 Billion (app. US$ 10 Billion)

– Capitalization ( 资本化 )： since 2003 non-state investment stock market multi-financing sources

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

- 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)

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.

C, Structural changes in the context of culture system reform.

Culture System Reform--Decree No. 21. 2003:

Public service sector ( 公益性事业 )Business sector ( 经营性产业 ) 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.

Public service units: （ media outlets 事业单位） - news, current

affairs - political

information - educational

content

Business units:（ media companies 企业单位） - production,

distribution - transmission network - advertising business - entertainment,

music,movie/TV

drama ， sports ， lifestyle, science…

- new media: IPTV, Mobile TV,

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

II. The Issues of Chinese Broadcasting Media

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 ?

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

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

– Composition:

administrator + media outlets

(bureau + stations 局＋台＝集团 )

– Nature:

public service unit groups

Cases:

China Media Group (CMG, 中国广播影视集团 ) Dec. 6, 2001—June, 2005

Beijing Media Group Division between Media outlets (stations)

and media business companies Beijing radio & TV stations separated from

BMG

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.

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.

Ⅲ. Discussion

1, Audience as the public are changing.

A, fragmentation/ diversification

- social stratification

B, ascending awareness of civil rights

2, the Party-state

A, The core purpose:

- Control: legitimacy, stability- Openness: capacity, competitiveness

- To consolidate the legitimacy and - To consolidate the legitimacy and leading role of the Party by leading role of the Party by strengthening its institutionalized strengthening its institutionalized control—ideological & personnel, policycontrol—ideological & personnel, policy—— over media.over media.

- To develop state-owned mainstream - To develop state-owned mainstream media to obtain the continual political media to obtain the continual political stability of the Party-statestability of the Party-state

- To speed up the pace of To speed up the pace of commercialization by applying market commercialization by applying market mechanism to the development of mechanism to the development of media capacity and competitivenessmedia capacity and competitiveness

- To provide basic and necessary media - To provide basic and necessary media services for the public who are at the services for the public who are at the low-end of social stratificationlow-end of social stratification

B, De-ideologicalization + Re-ideologicalization

A problem is that for China’s 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.

C, Ideology: public = propaganda?

The policy-makers will be likely or not to find the equilibrium among the politics, the economy and the society?

Thank You!