2022年市場-電視產(chǎn)業(yè)行業(yè)研究China'sTVindustry英文

GE/960507/BJ/HXGE/960507/BJ/HXINTRODUCTIONThisisthefirstoffourdeliverablesoftheGEAmericomChinastudywhichanalyzesChina'scurrentTVbroadcastingindustry.ThedocumentincludescurrentTVbroadcasterrevenueandviewership,governmentregulations,industrystructureandcompetition.Inthenextphase,theteamwillworkaccordingtothestudyplananddelivertheremainingend-products:?Currenttranspondersupplyanddemand?EvolutionofChina'sTVbroadcastingindustryoverthenext5-10years?MarketentryscenariosforGEAmericomTheteamwillfocusonthevideodeliverysegmentduringtheremainderofthestudy,whileatthesametimemaintaina襜igpicture?perspectiveontheentirevaluechain.

中國電視產(chǎn)業(yè)行業(yè)研究China'sTVindustry

GE/960507/BJ/HXGE/960507/BJ/HXSUMMARYThecurrentprofileofChina'sTVindustryindicatesthedevelopmentofanattractivemarket.Multiplepotentialopportunitiesexistforcreativeforeignplayersacrosstheindustryvaluechain.Potentialparticipants,however,mustpossesstheabilitytoweatherChina'sstringentregulatoryenvironmentandfaceintensecompetitionfrombothforeignanddomesticplayers.?HighTVpenetration,rapidrevenuegrowthamidinsufficientcontentproductionandlimitedbroadcastingmediumsindicatehighpotentialforChina'sTVbroadcastingmarket.Moreover,Chineseviewersspendmuchoftheirleisuretimewatchingtelevisionintheevenings,primarilynews,drama,documentary,varietyshowsandsports(apatternsimilartoothermarkets).?China'sstricttelevisionbroadcastingregulationsarebothoutdatedanddifficulttoenforce.ForeignoperatorsandtheirChinesepartnerscreativelybypasstheseregulationsbyaddressingthegovernment'spolicyprioritiesofpreservingpoliticalstabilityandeconomicdevelopment.?China'sbroadcastingindustryisstate-ownedandcontrolled.ChinaCentralTelevision(CCTV)possessesamonopolyovernationalbroadcasts,whilecompetitionatprovincialandlocallevelsexistamongterrestrialandCATVplayers,andtoalesserextentsatelliteTVbroadcasters.Moreover,multipleplayerscreateacompetitiveenvironmentinChina'sTVbroadcastingequipmentmanufacturingsector.?AlthoughgovernmentownsandcontrolsChina'sTVbroadcastingindustry,competitionforviewershipandhenceadvertisingrevenueremainsfierce.Nevertheless,domesticTVstationsdocooperatethroughprogrambarteringandotherarrangements.

GE/960507/BJ/HXGE/960507/BJ/HXREVENUEANDCUSTOMERHighTVpenetration,rapidrevenuegrowthamidinsufficientcontentproductionandlimitedbroadcastingmediumsindicatehighpotentialforChina'sTVbroadcastingmarket.Moreover,Chineseviewersspendmuchoftheirleisuretimewatchingtelevisionintheevenings,primarilynews,drama,documentary,varietyshowsandsports(apatternsimilartoothermarkets).?ChinahashighTVpenetrationrateanditstotalTVoperatorrevenuesincreaseddramaticallyoverthelastfouryears,mainlydrivenbyTVadvertising

?TerrestrialTVisthemainbroadcastingmediuminChina,withCATVmakingsignificantinroadssincetheearly1990s.DomesticTVprogramproductioncapacity,despiteitsrapidgrowth,isinsufficienttomeetdemand.

?TelevisionisthemediumwhereChina'sviewersspendmostoftheirleisuretime.Viewersprefertowatchnews,drama,documentary,varietyshowsandsportsduringpeakeveningbroadcasthours.GE/960507/BJ/HXGE/960507/BJ/HXTELEVISIONHOUSEHOLDPENETRATIONANDGROWTH * NotethatcolorandB&WTVpenetrationarenotmutuallyexclusive Source: ChinaStatisticalYearbook758619921994UrbancolorTVpenetrationUrbanB&WTVpenetrationCAGR=7%383119921994CAGR=-10%5814199019921994RuralcolorTVpenetration405262199019921994RuralB&WTVpenetrationCAGR=29%CAGR=12%1994Nationaloverallaverage:86%ChinahasahighTVpenetrationrate.GE/960507/BJ/HXGE/960507/BJ/HXTVOPERATORREVENUEANDGROWTH * IndustryadvertisementandsubscriptionrevenueonterrestrialcableandsatelliteTV,in1994constantdollar Source: StatisticYearbooks1995;1995PanAsiaSatelliteandCableTV(PASCATV)Conference;McKinseyanalysisESTIMATE2%76USAChina1994TVoperatorrevenue*PercentofGDP0.8%0.1USAChinaTVrevenuegrowthCAGR(90-94)PercentTVoperatorrevenuegrewrapidlyoverthelastfouryears,andhasanenormousroomforfurthergrowth.GE/960507/BJ/HXGE/960507/BJ/HXSIGNIFICANCEOFTVADVERTISEMENTFORBROADCASTERS,1994US$MILLION,PERCENT

Source: StatisticalYearbooks1995,1995PASCATVConference,McKinseyanalysisUSChinaComments100%=$53billion100%=$0.7billion?CATVandsomesatelliteTVaresubscription-basedinChina(e.g.CNNI,CNBC)?MajorityofsatelliteTVisfree-to-air,excepttohotelsandresorts?CATVchargessmallmonthlyfeeRMB?0-20/month?Estimated25-35millionCATVHH,and1millionsatelliteTVHHinChina64%Advertising36SubscriptionTVadvertisingincomemakesupthelion'sshareofbroadcasterrevenue.GE/960507/BJ/HXGE/960507/BJ/HXTVisanimportantadvertisingmedium.COMPETITIONAMONGADVERTISINGMEDIA?1994 * Includesoutdoor,directresponseandothertypesofadvertising Source: ChinaAdvertisingAssociation;AdvertisingandMediaFactBook;ChinaStatisticalYearbook1995Newspaper25.0%TV22.3Radio2.5Magazine2.0Others*48.2ChinaUSNewspaper23.7%TV22.7Outdoor22.5Directresponse18.1Radio6.7Magazine5.4Other0.8100%=$2.3billion100%=$148.2billionGE/960507/BJ/HXGE/960507/BJ/HXTOTALTELEVISIONADVERTISINGEXPENDITURESINCHINA?1990-94*US$MILLION * Currentprices Source: Zenithmedia,1995658235651188719901991199219931994CAGR=92%Advertisingexpendituresincreaseddramaticallyoverthelastfouryears.EntertainmentCoverageChina'sTVbroadcastingindustryisorganizedalongnational,regional,provincialandlocallevelswhereCCTVisthesolenationalTVbroadcaster.GE/960507/BJ/HXCOMPETITIONAMONGADVERTISINGMEDIA?1994Sports,EntertainmentTVViewership**Source: MinistryofElectronicIndustryUnitedInternationalHoldingsInc.EnforcingAgencyState-ownedDatelaunchedBeijingRadioGE/960507/BJ/HXGE/960507/BJ/HXTOPADVERTISINGREVENUECONTRIBUTORSINCHINA-1994 Source: SRGChinaSpending337.4241.9195.2167.8166.3164.7153.2150.5145.1138.2TV/Video/Access.Tonics&VitaminsRetail/ServiceAirConditioner/DehumidifierIndustryEquipmentChineseOTCHomeElectronicsCommunicationsEquipmentDept.StoresHaircareProductCategoryRMBmillion45.426.926.721.220.618.418.3Marlboro555-StateexpressShengdaZhonghuaBeijingSamsungTVOKPanasonicTVMotorolaPagerArielWashingPowderSharpViewcamXiaobawangComputerYangshenhubaoSolutionTVadvertiserSpendingRMBmillionConsumerproductsandtobaccocompaniesdominatethelistoftopadvertisingspenders.GE/960507/BJ/HXGE/960507/BJ/HXTERRESTRIALTV,CABLEANDSATELLITEDISHHOUSEHOLDPENETRATIONINCHINA,1994MILLIONHOUSEHOLDS * MostestimateputCATVHHaround25-35millionatendof1994 Source: Kagan'sAsiaPacificCable/PayTV,1996;PASCATVconference,1995;StatisticalYearbooksSatelliteCable*7.38.7Terrestrial99.497.394.892.490.719901991199219931994163187191205229100%=99.4%TerrestrialTVisthemainbroadcastingmediuminChina,whileCATVisrapidlygainingshare.GE/960507/BJ/HXGE/960507/BJ/HXANNUALTVPROGRAMPRODUCTIONINCHINATHOUSANDPROGRAMHOURS*NeedUSfiguresforcomparison Source: StatisticalYearbook1995Educational92148218281News87147212274Others581001562091990199219931994CAGR

(1990-1994)Overall:32%Educational:8%News:22%Others:39%TVprogramProductioncapacityhasincreasedsubstantially.GE/960507/BJ/HXLowaverageproductionhourperstation,andlimitedchannelselectionsinChinareflectinsufficientprogramproductioncapacity.6.17.219931994AverageProductionperStationProgramhourperyearComparisonofUSandChinaTVOfferingNumberofChannelsBeijingShanghaiGuangzhouAverageChinesecitiesAverageUSAcitiesTerrestrialTVBeijingShanghaiGuangzhouAverageChinesecitiesAverageUSAcitiesCableTV20~50ESTIMATE Source: SRGMediaIndex,GeneralTVsurveyandconsultingCenter,interviews10~14~10~122~310~15353~50GE/960507/BJ/HXGE/960507/BJ/HXChineseviewersspendmuchoftheirleisuretimewatchingTV.CONSUMERTIMESPENTONMEDIA?1994HOURSPERCONSUMERPERYEAR * Roughestimatesbasedonpenetrationanddailyusage Source: StatisticalYearbooks1995;SRGChinaMediaIndex1995;McKinseyanalysisVideo/LD12Movie2Prints1516Radio2112TV6170China*US100%=1,7051,539ESTIMATEGE/960507/BJ/HXTVVIEWERSHIPGROWTHINSHANGHAI

Source: SRGMediaIndex<11715101-23327222-32628233-4151822>4hours91222199319941995100%=Averagedailyviewershiphours/dayDailyTVviewershipisincreasing.GE/960507/BJ/HXGE/960507/BJ/HXTOPTENTVPROGRAMSINCHINA?1993PERCENT * PercentofTVHHswhichviewtheprogramgenre Source: SRGChinaMediaIndexEXAMPLES26.322.32220.217.715.56.2?News?Focusinterviews?Documentary?Varietyshow?Dramaseries?Foreignmovie?Businessspecial?Sports?Movie?Childrenprogram827257464543311287?News?Dramaseries?Movies?Varietyshow?Sports?Music?Documentary?Cartoon?Childrenprogram?Housewifeprogram23.918.517.215.715.615.515.414.814.514.4?Drama(HK)?Drama(local)?Varietyshows?TVdirection?Socialfocus?TV&Audience?Sports?Familyguide?Avideoaday?NewsateightBeijingShanghai*GuangzhouAveragedailywatchingminutes171148171News,drama,documentary,varietyshowsandsportsarepopularinChina..TVViewership**1995ViewershippreferenceTVViewership**GE/960507/BJ/HXTVPROGRAMGENREINTEREST,SHANGHAI*PERCENT

* Samplesizeof1000based.Individualsaskedwhattypeofprogrammingtheyviewedyesterday. Source: SRGMediaIndex748219931995707219931995465719931995564619931995314519931995384319931995143519931995101219931995NewsDramaMoviesVarietyshowSportsMusicDocumentaryCartoonCAGR=5%CAGR=1%CAGR=11%CAGR=-9%CAGR=20%CAGR=6%CAGR=58%CAGR=10%DocumentaryandsportsprogramsareshowingthehighestgrowthinviewerinterestinShanghai.GE/960507/BJ/HXGE/960507/BJ/HXTYPICALDAILYVIEWINGPATTERNS(PERCENTOFTVHOUSEHOLDS) Source: GeneralTVsurveyandconsultingcenter199505101520253035067891011121314151617181920212223CCTV-1(News)01234067891011121314151617181920212223CCTV-2(Economics)TimeTimeEarlyeveningisTVprime-timeinChina.6:00-23:456:00-23:45GE/960507/BJ/HXGE/960507/BJ/HXREGULATIONChina'sstricttelevisionbroadcastingregulationsarebothoutdatedanddifficulttoenforce.ForeignoperatorsandtheirChinesepartnerscreativelybypasstheseregulationsbyaddressingthegovernment'spolicyprioritiesofpreservingpoliticalstabilityandeconomicdevelopment.?China'shasstrictregulationsgoverningcable,satellite,terrestrialTVbroadcasting,andTVrelatedequipmentmanufacturing.China'sregulatoryregimedatesbackto1993andasaresulthasnotbeenrevisedinlightofthedramaticchangestakingplaceinrecentyears.Further,thegovernmenthasdifficultiesenforcingitsdesiredtightcontrolovermediabroadcasting.

?ForeignoperatorshavesucceededinexploringopportunitiesinTVbroadcastingbyaddressinggovernmentalinterestsandbyleveragingtheuseofeconomicincentives.Suchopportunitiesarepartlyaresultofthedivergentagendasofcentralandlocalgovernmentreflectedinthesimultaneousneedforeconomicdevelopmentandpoliticalcontrol.GE/960507/BJ/HXChina誷strictregulationislargelyoutdated(givenrapidlyindustryevolution)anddifficulttoenforce.SectorRegulatorRegulationEnforcementReasonforenforcementdifficultiesContentSatellitebroadcastingTerrestrialbroadcastingCableTVEquipment?MRFT?MRFT?MPS?MSS?MRFT?MRFT?MRFT?MEI?Allforeignorco-producedcontentrequireMRFTapprovalinordertobeaired?ForeigncompaniescanformJVstudiosinChina?Governmentcontrolthroughgroundstationregulation?Allgroundstationsrequiregovernmentlicenses?Individualsareforbiddentoownsatellitedishes?AmbiguouswhetherforeignJVsareallowedingroundstations?Centrallycontrolled(CCTV)?Noforeignownership?Routinecensorshipofforeigncontent?NoforeignownershipandoperationpermittedinCATV?Routinecensorshipofforeigncontent?Foreignparticipationgenerallywelcomed?ForeignJVsandimport/exportsrequireMEIandMRFTapproval?Strict?Questionable?Strict?Questionable

?Flexible?N/A?Lackcapabilitytoenforcesatellitedishbanfromhouseholdtohousehold?N/A?Conflictbetweencentralpoliticalinterestsandlocaleconomicinterest?N/A

REGULATORYENVIRONMENT(1993REGIME) Source: StateCouncildecreeof1993.MRFT,literaturesearchGE/960507/BJ/HXRegulationsonsatelliteandearthsegmentsaremoststringent,involvingseveralgovernmentalagencies.RegulatorEnforcingAgencyRegulationsMinistryofRadio,FilmandTelevision(MRFT)MinistryofPublicSecurity(MPS)MinistryofStateSecurity(MSS)MinistryofElectronicIndustry(MEI)ProvincialandlocalbureausofMRFTProvincialandlocalpublicsecuritybureauProvincialandlocalstatesecuritybureauProvincialandlocalbureausoftheMEI?SatellitegroundstationoperatorsmusthavelicensefromMRFT?CPEandearthsegmentequipmentmanufacturersandimporters/exportersrequirealicensefromMEI?Institutionspermittedtoapplyforgroundstationstoreceivedomesticprograms?Onlythefollowingareeligibletoapplyforgroundstationsinordertoreceiveforeignmedia.?Largescaleeducation,research,finance,news,tradeorganization蠬otels(minimum3-star),foreignhotel,foreignresidentialcomplex?IndividualsarenotpermittedtoinstalloruseearthstationsunlessapprovedbytheregulatorybodyREGULATIONS-SATELLITEANDEARTHSEGMENT Source: StateCouncilDecreestet,MRFTGE/960507/BJ/HXCableTVregulationisalsolegalisticallyverystrict.RegulatorEnforcingAgencyMainRegulationsMinistryofRadio,FilmandTelevision(MRFT)ProvincialandlocalMRFTbureaus?OnepubicCATVstationpermittedpercity?PrivateCATVstationsoperatedbyinstitutionspermittedtodeliverprogrammingonlywithinitspremises?AllCATVstationsrequiredlicensefromMRFT?NoindividualpermittedtooperateCATVstations?NoforeignparticipationisallowedinbuildingandoperatingCATVstations?CATVcanchargeitsusersforinstallation,service,andprogramfee.FeelevelsdeterminedbythelocalMRFTbureauandlocalpricingbureau?CATVpermittedtotransmitpurchasedprograms,exchangeprograms,andownprogramsaftersatisfyingtransmissionrequirementsofCCTV,andprovincialandlocalTVprograms.?AllprogramsrequireMRFTcensorshipapproval?Regulatoryviolationsubjecttowarning,fine,revokingofbroadcastinglicense,CATVstationdissolution,andprosecutionREGULATIONS-CABLETELEVISION Source: StateCouncilDecree1993,MRFTGE/960507/BJ/HX?Allimportedandco-producedprogramsrequireMRFTcensorshipapproval?CensorshipbasedprimarilyonprotectingsocietyfromWestern"spiritualpollution"intermsofmoralityandpoliticalthought.?Foreigncontentnottoexceed25%ofdailybroadcasthours?Foreigncontentnottoexceed15%ofpeak-broadcastinghours?Violationofregulatoryrulessubjecttowarning,fine,revokingofbroadcastinglicense,CATVstationdissolutionandprosecutionContentregulationsareprimarilyafunctionofcensorship.REGULATIONS-FOREIGNPROGRAMCONTENT Source: StateCouncilDecree1993,MRFTProvincialandlocalbureausofMRFTMinistryofRadio,FilmandTelevision(MRFT)MainRegulationsEnforcingAgencyRegulatorGE/960507/BJ/HXGE/960507/BJ/HXREGULATION-FOREIGNBROADCASTERPERSPECTIVES襉urprogrammingpolicyis詎osex,noviolence,nonews,buthumorousmaterialsforentertainment沼

-RobertChua,CEO,ChinaEntertainmentTelevision(CETV)襍tarTVdroppedtheBBCnewsbroadcastsinresponsetoChinesepressuresregardingBBC誷詉ndependent?reportingofChinesedomesticaffairs.? -StarTVmanager,HongKongInnovativeforeignplayerstypicallyhaveavaluepropositiongearedtoboththeChinesegovernmentandpotentialconsumers.GE/960507/BJ/HXDespitestrictregulationslimitingforeignparticipation,multinationalshavediscoveredvariousmeansofenteringChina誷lucrativeTVbroadcastingindustry.ProgrammingSatelliteBroadcastingEarthStationCATVSpaceSegmentNumberofJVs2?231TypicalActivities?Producelocalprogramming&advertising?Selltapedandpre-censoredprogramming?Foreign-basedstationbroadcastingintoChina?Revenueprimarilybasedonadvertising?Buildandoperateearthstations?BuildandoperatecableTVnetwork?Manufactureset-topboxes?LeasetranspondertobroadcastersExamples?ShanghaiPartnershipMediaCo.(TimeWarner)?StarTVandTianjinGoldenMainlandDevelopmentCompany(US$20million)?StarTV?ChineseEntertainmentTelevision?ChinaTelevisionNetwork?TVBS?UnitedInternationalHoldingsandHunanBroadcastBureau?YunnanKingModelTobaccoTelecomCerationwithScientificAtlanta?WharfCablehasa20%stakeinChengduCATV?AIM(HK)WuhanCableSystem?ScientificAtlantaShanghaiJVforCATVequipment?AsiaSat(CITIC,Hutchison,Cable&Wireless)FOREIGNPARTICIPATIONINTVBROADCASTING * Noforeignparticipationinterrestrialsegment Source: SuperhighwaysinAsia,MTA-EMCI,Kagan1994,literaturesearchPRELIMINARYGE/960507/BJ/HXGE/960507/BJ/HXINDUSTRYSTRUCTUREChina'sbroadcastingindustryisstate-ownedandcontrolled.ChinaCentralTelevision(CCTV)possessesamonopolyovernationalbroadcasts,whilecompetitionatprovincialandlocallevelsexistbetweenterrestrialandCATVplayers,andtoalesserextentsatelliteTVbroadcasters.Moreover,multipleplayerscreateacompetitiveenvironmentinChina'sTVbroadcastingequipmentmanufacturingsector.?Intermsofrevenue,China'sTVbroadcastingindustryremainsrelativelysmall.ThestateownsandcontrolstheindustrywithCCTVbeingthesolenationalTVbroadcaster(viasatellite).AlthoughforeignbroadcastersdoofferprogrammingtoChinaviasatellite,noforeign-ownedTVstationscurrentlyexistinChina.

?ProvincialandlocalgovernmentsownandoperateterrestrialTVstationsandanestimated500CATVstations.Inaddition,thereareapproximately600privatelyownedCATVstationscurrentlyinoperation.Usually,twotothreeterrestrialandCATVstationsoperateineachlocality.?AlargenumberofTVbroadcastingequipmentmanufacturerscovermostproductcategories.GE/960507/BJ/HXTherevenuesizeofChina誷TVbroadcastingindustryissmall.REVENUESIZEOFSELECTEDSEGMENTSINCHINA'STELEVISIONINDUSTRY,1994US$MILLION * AssumesUS$50perunit Source: ChinaStatisticalYearbook;MTA-EMCI;OutlookofElectronicsMarket,1996;McKinseyanalysis672518350150SubscriptionAdvertisingCablenetworkEquipmentSatelliteEquipmentSet-topbox*TotalRevenueESTIMATE1,71828GE/960507/BJ/HXGE/960507/BJ/HXINDUSTRYSTRUCTURE

RegulatoryauthorityNationaloperatorRegionaloperatorProvincialoperatorLocalBroadcastinginfrastructureandserviceMRFTMPSMSS?CCTV?ForeignsatelliteTVstations(e.g.StarTV)*?ProvincialpublicTVstations?ForeignsatelliteTVstations(e.g.HKTVBI,StarTV)*?ProvincialpublicTVstations(usuallyoneperprovince)?ForeignsatelliteTVstations*?LocalTVstations(usuallyoneortwo)?LocalCATVstations(usuallyoneortwo)?ForeignsatelliteTVstations*EquipmentmanufacturingMEI * OperateoutsideChinaandbroadcastviasatelliteintoChina ** SeeTV,CableandSatelliteDishhouseholdschartinthispack. Source: MRFTChina'sTVbroadcastingindustryisorganizedalongnational,regional,provincialandlocallevelswhereCCTVisthesolenationalTVbroadcaster.GE/960507/BJ/HXGE/960507/BJ/HXFOREIGNPLAYERSACTIVEINCHINA,1995PERCENT Source: LiteraturesearchGlobalplayer5Regionalplayer6BroadcastersSatelliteoperatorsSet-topboxmanufacturers2331Total=1154?Intelsat?PanAmSat?AsiaSat?Asia-PacificSatelliteTelecommunications?Rimsat?StarTV?AustralianTVinternational?CTV?CETV?PhoenixTV?TVBI?CNNI?ANBC?MTVAsia?ESPN?ABC-ATV1?PanAsianSystems?Generalinstrument?ScientificAtlanta?TRWInc.PRELIMINARYMultipleforeignplayersinvolvedinTVbroadcasting,satelliteoperationandset-topboxmanufacturingareactiveinChina.PanAsianSystemsEnforcementRuralcolorTVpenetrationGE/960507/BJ/HXGE/960507/BJ/HXtrunkamplifyingequipmentInthenextphase,theteamwillworkaccordingtothestudyplananddelivertheremainingend-products:TYPICALDAILYVIEWINGPATTERNSFree-to-airBroadcasterGE/960507/BJ/HXCHINACABLETELEVISION,1993-1995ShanghaiFibreOpticTelecommunicationsEngineeringCo.TYPICALDAILYVIEWINGPATTERNSChina誷strictregulationislargelyoutdated(givenrapidlyindustryevolution)anddifficulttoenforce.GE/960507/BJ/HXGE/960507/BJ/HX * MostofthestationsadministratedbyCCTV ** Currently,mostlylocal Source: MTA-EMCI,Kagan;literaturesearchTVStations*CableTVoperator**National1Provincial25Local616Publicoperator~500Privateoperator~600State-owned1SatelliteoperatorDOMESTICPLAYERS,1995ESTIMATEChina'sbroadcastingindustryismonopolisticatthenationallevel,whilecompetitiveatthelocallevel.GE/960507/BJ/HXGE/960507/BJ/HXDOMESTICEQUIPMENTPRODUCER?1994PRELIMINARY~140~80~6040~19CATVequipment(exceptset-topbox)BroadcastingequipmentStudioequipmentEarthsegmentequipmentSet-topbox~0130,000N/AN/AN/ANumberofcompaniesAverageproductionpercompany(units)N/A~ * Noclearsenseatthisstageofwhoisdoingwhat. Source: ChinaElectronicsIndustryYearbook,1995Eachequipmentsegmenthasmanyplayers.~Majorcompanies*?BeijingZhaogeMachineryandElectronicTechnologyCo.?ChengduHuashiElectronics?ChengduKangteElectronicsHighNewTechnologyCo.?NanjingLongyanElectronicTechnologyCo.?SichuanShidaGroupCo.?SumanPioneerGroup?WanlidaElectronics?ZhejiangTongguangElectronicsCo.Ltd.?ZhenjiangXingkeCommunicationFactoryGE/960507/BJ/HXGE/960507/BJ/HXCOMPETITIONAlthoughgovernmentownsandcontrolsChina誷TVbroadcastingindustry,competitionforviewershipandhenceadvertisingrevenueremainsfierce.Nevertheless,domesticTVstationsdocooperatethroughprogrambarteringandotherarrangements.?Inmajorcities,competinglocalandregionalterrestrialandCATVstationsoffersimilarprogrambouquetswithsimilarbroadcastingperiods.?Channelsinmajorcitymarketscompetehead-to-headforviewershipwhichisthenreflectedintheircompetitivelypricedadvertisingrates.?DomesticterrestrialTVandCATVstationsshareandrelayprogramsinresponsetothedomesticshortageofprogrammingandgovernmentrequirements.

GE/960507/BJ/HXCityStationTerrestrialChannelsCableChannelsProgramBouquetBroadcastPeriodBeijingCCTVBeijingTVTianjinTVHebeiTVTotal83211443003GeneralEntertainmentDrama,MoviesNews,SportsInternational,CulturalEducationalTerrestrialandcablearegenerally7:00-1:00ShanghaiSTVShanghaiOrientalCCTVTotal424105545SimilartoaboveSimilartoaboveGuangzhouGuangdongTVGuangzhouTVShantouTVGuangxiTVGuizhouTVHainanTVCCTVTotal311111412n/an/an/an/an/an/a4n/aSimilartoaboveSimilartoabove * Excludesforeignsatellitebroadcasters Source: ChinaAdvertisingDirectory,1996;ChinaBroadcastingYearbook,1995COMPETITIONINMAJORTELEVISIONMARKETS*PRELIMINARYMultiplecompetitorsineachofthemajormarketsoffersimilarprogrambouquetsandbroadcastperiods.GE/960507/BJ/HXGE/960507/BJ/HXTELEVISIONBROADCASTER-VALUEPROPOSITIONSBroadcasterValuePropositionCETV褻ETVisembracedbytheChinese...becauseCETVisabletomeettheprogrammingtasteofChineseinAsia,understandtheculturalandpoliticalsensitivitiesoftheregion,createwholesomefamilyentertainmentwithoutsexandviolenceandCETVisachannelrunbyChinesefortheChinesewithlocalprogramsfeaturingsomeofthebiggestnamesintelevision.CCTV襑eprovidethewidestcoverageinChinaandstateregulationsrequirealllocalstationstorebroadcastourprograms.ShanghaiOrientalTV襎hemostprogressivetelevisionstationinChina...viewer-orientedandcreative.STARTV襎heonlycomprehensiveregionalsatellitetelevisionbroadcastingcompanyinAsia-Pacific.Domesticandforeignoperatorshavevaluepropositionswhichappealtobothcustomersandgovernment.GE/960507/BJ/HXGE/960507/BJ/HXMajorchannelstypicallycompetehead-to-headforviewership,asinShanghai.DAILYREACHBYCHANNELINSHANGHAI?1990-95PERCENTOFINDIVIDUALS** * Establishedin1993 ** Samplesizeof1000polledonwhetherviewedTVyesterday Source: SRGChinaMediaIndex284145372634199019911992199319941995CCTV-1(News)483938199019911992199319941995ShanghaiOrientalTV*(Variety)445756594747199019911992199319941995ShanghaiTV-1(Variety)302712182235199019911992199319941995ShanghaiTV-2(News,culture)N/AN/AN/AEXAMPLEGE/960507/BJ/HXGE/960507/BJ/HX...andinBeijing.DAILYREACHBYCHANNELINBEIJING?1993PERCENT * Samplesizeof1000polledonwhetherviewedTVyesterday Source: SRGChinaMediaIndex;KaganAsiaPacific,1994617061671990199119921993CCTV-1(News)232430231990199119921993CCTV-2(Economics)785191990199119921993CCTV-3(Music)385654491990199119921993BTV-1(News,entertainment)201313191990199119921993BTV-2(Sports,entertainment)EXAMPLEGE/960507/BJ/HXGE/960507/BJ/HXTELEVISIONADVERTISINGRATES,PEAKPERIOD,1995US$PER30S * CPM:Costperthousandviewers Source: SRGChinaMediaIndex;CentralviewerSurvey;Consultingcenter;TVstationnotecards9,6391,927783CCTV-1CCTV-2CCTV-3CCTV2,6001,000850800PhoenixChineseStarsportsStarplusChannelVSTARTV3,855843265BTV-1BTV-2BTV-3BeijingTV3,3733,1081,4461,229361STV-1OrientalSTV-2STVcable-1STVcable-2ShanghaiTVCCTV誷nationalcoverageoffersextremelylowadvertisingratesinterm