China to restrict satellite TV stations to one foreign program

China to restrict satellite TV stations to one foreign program

Sun, Oct 20 2013

SHANGHAI (Reuters) – China will allow satellite television stations to buy the right to broadcast only one foreign program each year from 2014 as part of new restrictions to push “morality-building” and educational shows, state media reported on Monday. The official Shanghai Securities Journal, citing an order by the General Administration for Press and Publication to domestic television stations, also said foreign programs could not be broadcast in prime-time viewing hours from 7:30 p.m. to 10 p.m. during the year in which the broadcasting rights were purchased.The new rules are an intensification of an earlier policy announced in February, which capped the broadcast of foreign television series to 50 episodes, and will result in fewer foreign series being broadcast in China.

The campaign also could accelerate a wider trend: the migration of domestic viewers away from broadcast television toward pre-recorded shows downloaded from the Internet to computers and mobile devices.

The Chinese government is increasingly concerned about what it sees as rising vulgarity in domestic television programming. At the same time, it has been moving to limit domestic channels’ reliance on imported content.

The English-language Shanghai Daily said the new restrictions were intended to crack down on the growing practice of buying the copyright of proven foreign shows like “Britain’s Got Talent,” then localizing them without further modification, spawning shows like “China’s Got Talent.”

Such programming can be quickly monetised at minimal risk and is generally easy to sell to advertisers.

The new rules also stipulate that stations must increase the amount of public-interest programming such as documentaries, education and “morality-building” programs to not less than 30 percent of the total, and restrict the number of new musical talent shows to one every three months.

The Shanghai Daily quoted several programming directors at provincial television stations, which increasingly rely on advertising revenues instead of state subsidies, saying the new regulations would be tough on their operations.

Despite the government’s controls, popular foreign television shows are widely available as illegal downloads or on pirated DVDs.

In response to consumers’ shift toward watching downloaded content on mobile devices, many domestic television broadcasters have moved to make shows available online or have signed distribution partnerships with domestic video websites like Youku Tudou Inc’s Youku.com.

China committed to opening its domestic media sector to foreign competition during negotiations to join the World Trade Organization. Even so, it has maintained heavy restrictions on imported movies and television shows in order to provide room for state-controlled domestic producers.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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