While China's massive media industry offers great opportunities to
both domestic and foreign investors, government and industry
leaders must continue to push market reforms on the industry to
secure its long-term growth, officials said yesterday at the
opening of the Shanghai Media Forum.
More than 100 party and government officials as well as industry
chiefs from home and abroad are attending the three-day forum to
discuss the future of China's media industry following the
country's entry into the World Trade Organization.
Several leaders and media representatives delivered speeches at the
forum yesterday.
"Chinese media operators are enjoying more opportunities and
freedom to perform and evaluate themselves under a global
environment after the country's WTO accession," said Zhao Qizheng,
director of the State Council's Information Office.
As
one of the world's biggest media markets, China is home to 900
million TV viewers and 54.4 million internet users. The country
runs more than 3,100 TV stations and publishes 2,100 newspapers,
8,800 magazines as well as 150,000 books annually.
Advertising income has maintained an average 21.38 percent annual
growth rate over the past five years, with the figure reaching 92
billion yuan (US$11.1 billion) last year, according to research
firm AC Nielsen.
"But equally, media operators here are feeling more pressure,
especially when the market is gradually opened to overseas
investment," said Zhao. "Our problems include limited investment,
lower management level and the lack of talented managers and new
ideas."
As
part of its WTO commitment, China has allowed a limited
distribution of foreign-produced TV programs in the country's
southern Guangdong Province starting early this year.
The country also increased the number of foreign movies it imports
every year to 20.
To
date, America Online Time Warner Inc., News Corp., Bertelsmann AG
and Vivendi Universal have all entered the Chinese market.
Jean-Louis Diefenbacher, chairman and chief executive officer of
Vivendi Universal Asia-Pacific Ltd, Hong Kong, suggested Chinese
media groups adopt appropriate organization planning.
"Such planning should be based on inter-institutional
understanding, creation of special management and operational
bodies and an interaction between public and private players in
project management and execution," Diefenbacher said.
He
also revealed that Vivendi is now in discussions with Chinese
authorities for the launch of two projects on the Chinese mainland,
including a theme park in Shanghai.
During yesterday's question-and-answer sessions of the forum,
attendants also discussed issues like China's future introduction
of content industry and multi-media investment.
(Eastday.com, December 6, 2002)