电视产业行业研究ChinasTVindustry(ppt55)英文(1).PPT

GE/960507/BJ/HX,GE/960507/BJ/HX,INTRODUCTION,ThisisthefirstoffourdeliverablesoftheGEAmericomChinastudywhichanalyzesChinascurrentTVbroadcastingindustry.ThedocumentincludescurrentTVbroadcasterrevenueandviewership,governmentregulations,industrystructureandcompetition.Inthenextphase,theteamwillworkaccordingtothestudyplananddelivertheremainingend-products:?Currenttranspondersupplyanddemand?EvolutionofChinasTVbroadcastingindustryoverthenext5-10years?MarketentryscenariosforGEAmericomTheteamwillfocusonthevideodeliverysegmentduringtheremainderofthestudy,whileatthesametimemaintaina襜igpicture?perspectiveontheentirevaluechain.,GE/960507/BJ/HX,GE/960507/BJ/HX,SUMMARY,ThecurrentprofileofChinasTVindustryindicatesthedevelopmentofanattractivemarket.Multiplepotentialopportunitiesexistforcreativeforeignplayersacrosstheindustryvaluechain.Potentialparticipants,however,mustpossesstheabilitytoweatherChinasstringentregulatoryenvironmentandfaceintensecompetitionfrombothforeignanddomesticplayers.?HighTVpenetration,rapidrevenuegrowthamidinsufficientcontentproductionandlimitedbroadcastingmediumsindicatehighpotentialforChinasTVbroadcastingmarket.Moreover,Chineseviewersspendmuchoftheirleisuretimewatchingtelevisionintheevenings,primarilynews,drama,documentary,varietyshowsandsports(apatternsimilartoothermarkets).?Chinasstricttelevisionbroadcastingregulationsarebothoutdatedanddifficulttoenforce.ForeignoperatorsandtheirChinesepartnerscreativelybypasstheseregulationsbyaddressingthegovernmentspolicyprioritiesofpreservingpoliticalstabilityandeconomicdevelopment.?Chinasbroadcastingindustryisstate-ownedandcontrolled.ChinaCentralTelevision(CCTV)possessesamonopolyovernationalbroadcasts,whilecompetitionatprovincialandlocallevelsexistamongterrestrialandCATVplayers,andtoalesserextentsatelliteTVbroadcasters.Moreover,multipleplayerscreateacompetitiveenvironmentinChinasTVbroadcastingequipmentmanufacturingsector.?AlthoughgovernmentownsandcontrolsChinasTVbroadcastingindustry,competitionforviewershipandhenceadvertisingrevenueremainsfierce.Nevertheless,domesticTVstationsdocooperatethroughprogrambarteringandotherarrangements.,GE/960507/BJ/HX,GE/960507/BJ/HX,REVENUEANDCUSTOMER,HighTVpenetration,rapidrevenuegrowthamidinsufficientcontentproductionandlimitedbroadcastingmediumsindicatehighpotentialforChinasTVbroadcastingmarket.Moreover,Chineseviewersspendmuchoftheirleisuretimewatchingtelevisionintheevenings,primarilynews,drama,documentary,varietyshowsandsports(apatternsimilartoothermarkets).?ChinahashighTVpenetrationrateanditstotalTVoperatorrevenuesincreaseddramaticallyoverthelastfouryears,mainlydrivenbyTVadvertising?TerrestrialTVisthemainbroadcastingmediuminChina,withCATVmakingsignificantinroadssincetheearly1990s.DomesticTVprogramproductioncapacity,despiteitsrapidgrowth,isinsufficienttomeetdemand.?TelevisionisthemediumwhereChinasviewersspendmostoftheirleisuretime.Viewersprefertowatchnews,drama,documentary,varietyshowsandsportsduringpeakeveningbroadcasthours.,GE/960507/BJ/HX,GE/960507/BJ/HX,TELEVISIONHOUSEHOLDPENETRATIONANDGROWTH,*NotethatcolorandB1995PanAsiaSatelliteandCableTV(PASCATV)Conference;McKinseyanalysis,ESTIMATE,1994TVoperatorrevenue*PercentofGDP,0.8%,0.1,USA,China,TVrevenuegrowthCAGR(90-94)Percent,TVoperatorrevenuegrewrapidlyoverthelastfouryears,andhasanenormousroomforfurthergrowth.,GE/960507/BJ/HX,GE/960507/BJ/HX,SIGNIFICANCEOFTVADVERTISEMENTFORBROADCASTERS,1994US$MILLION,PERCENT,Source:StatisticalYearbooks1995,1995PASCATVConference,McKinseyanalysis,US,China,Comments,100%=$53billion,100%=$0.7billion,?CATVandsomesatelliteTVaresubscription-basedinChina(e.g.CNNI,CNBC)?MajorityofsatelliteTVisfree-to-air,excepttohotelsandresorts?CATVchargessmallmonthlyfeeRMB?0-20/month?Estimated25-35millionCATVHH,and1millionsatelliteTVHHinChina,TVadvertisingincomemakesupthelionsshareofbroadcasterrevenue.,GE/960507/BJ/HX,GE/960507/BJ/HX,TVisanimportantadvertisingmedium.,COMPETITIONAMONGADVERTISINGMEDIA?1994,*Includesoutdoor,directresponseandothertypesofadvertisingSource:ChinaAdvertisingAssociation;AdvertisingandMediaFactBook;ChinaStatisticalYearbook1995,China,US,100%=$2.3billion,100%=$148.2billion,GE/960507/BJ/HX,GE/960507/BJ/HX,TOTALTELEVISIONADVERTISINGEXPENDITURESINCHINA?1990-94*US$MILLION,*CurrentpricesSource:Zenithmedia,1995,65,82,356,511,887,1990,1991,1992,1993,1994,CAGR=92%,Advertisingexpendituresincreaseddramaticallyoverthelastfouryears.,GE/960507/BJ/HX,GE/960507/BJ/HX,TOPADVERTISINGREVENUECONTRIBUTORSINCHINA-1994,Source:SRGChina,Spending,ProductCategory,RMBmillion,TVadvertiser,Spending,RMBmillion,Consumerproductsandtobaccocompaniesdominatethelistoftopadvertisingspenders.,GE/960507/BJ/HX,GE/960507/BJ/HX,TERRESTRIALTV,CABLEANDSATELLITEDISHHOUSEHOLDPENETRATIONINCHINA,1994MILLIONHOUSEHOLDS,*MostestimateputCATVHHaround25-35millionatendof1994Source:KagansAsiaPacificCable/PayTV,1996;PASCATVconference,1995;StatisticalYearbooks,163,187,191,205,229,100%=,99.4%,TerrestrialTVisthemainbroadcastingmediuminChina,whileCATVisrapidlygainingshare.,GE/960507/BJ/HX,GE/960507/BJ/HX,ANNUALTVPROGRAMPRODUCTIONINCHINATHOUSANDPROGRAMHOURS,*NeedUSfiguresforcomparisonSource:StatisticalYearbook1995,Educational,92,148,218,281,News,87,147,212,274,Others,58,100,156,209,1990,1992,1993,1994,CAGR(1990-1994)Overall:32%Educational:8%News:22%Others:39%,TVprogramProductioncapacityhasincreasedsubstantially.,GE/960507/BJ/HX,Lowaverageproductionhourperstation,andlimitedchannelselectionsinChinareflectinsufficientprogramproductioncapacity.,AverageProductionperStationProgramhourperyear,ComparisonofUSandChinaTVOfferingNumberofChannels,TerrestrialTV,CableTV,2050,ESTIMATE,Source:SRGMediaIndex,GeneralTVsurveyandconsultingCenter,interviews,1014,10,12,23,1015,3,5,35,0,GE/960507/BJ/HX,GE/960507/BJ/HX,ChineseviewersspendmuchoftheirleisuretimewatchingTV.,CONSUMERTIMESPENTONMEDIA?1994HOURSPERCONSUMERPERYEAR,*RoughestimatesbasedonpenetrationanddailyusageSource:StatisticalYearbooks1995;SRGChinaMediaIndex1995;McKinseyanalysis,100%=,1,705,1,539,ESTIMATE,GE/960507/BJ/HX,TVVIEWERSHIPGROWTHINSHANGHAI,Source:SRGMediaIndex,100%=,2.2,2.5,3.0,Averagedailyviewershiphours/day,DailyTVviewershipisincreasing.,GE/960507/BJ/HX,GE/960507/BJ/HX,TOPTENTVPROGRAMSINCHINA?1993PERCENT,*PercentofTVHHswhichviewtheprogramgenreSource:SRGChinaMediaIndex,EXAMPLES,Beijing,Shanghai*,Guangzhou,Averagedailywatchingminutes,171,148,171,News,drama,documentary,varietyshowsandsportsarepopularinChina.,TVViewership*,1995Viewershippreference,TVViewership*,GE/960507/BJ/HX,TVPROGRAMGENREINTEREST,SHANGHAI*PERCENT,*Samplesizeof1000based.Individualsaskedwhattypeofprogrammingtheyviewedyesterday.Source:SRGMediaIndex,News,Drama,Movies,Varietyshow,Sports,Music,Documentary,Cartoon,CAGR=5%,CAGR=1%,CAGR=11%,CAGR=-9%,CAGR=20%,CAGR=6%,CAGR=58%,CAGR=10%,DocumentaryandsportsprogramsareshowingthehighestgrowthinviewerinterestinShanghai.,GE/960507/BJ/HX,GE/960507/BJ/HX,TYPICALDAILYVIEWINGPATTERNS(PERCENTOFTVHOUSEHOLDS),Source:GeneralTVsurveyandconsultingcenter1995,CCTV-1(News),CCTV-2(Economics),Time,Time,EarlyeveningisTVprime-timeinChina.,6:00-23:45,6:00-23:45,GE/960507/BJ/HX,GE/960507/BJ/HX,REGULATION,Chinasstricttelevisionbroadcastingregulationsarebothoutdatedanddifficulttoenforce.ForeignoperatorsandtheirChinesepartnerscreativelybypasstheseregulationsbyaddressingthegovernmentspolicyprioritiesofpreservingpoliticalstabilityandeconomicdevelopment.?Chinashasstrictregulationsgoverningcable,satellite,terrestrialTVbroadcasting,andTVrelatedequipmentmanufacturing.Chinasregulatoryregimedatesbackto1993andasaresulthasnotbeenrevisedinlightofthedramaticchangestakingplaceinrecentyears.Further,thegovernmenthasdifficultiesenforcingitsdesiredtightcontrolovermediabroadcasting.?ForeignoperatorshavesucceededinexploringopportunitiesinTVbroadcastingbyaddressinggovernmentalinterestsandbyleveragingtheuseofeconomicincentives.Suchopportunitiesarepartlyaresultofthedivergentagendasofcentralandlocalgovernmentreflectedinthesimultaneousneedforeconomicdevelopmentandpoliticalcontrol.,GE/960507/BJ/HX,China誷strictregulationislargelyoutdated(givenrapidlyindustryevolution)anddifficulttoenforce.,Sector,Regulator,Regulation,Enforcement,Reasonforenforcementdifficulties,ContentSatellitebroadcastingTerrestrialbroadcastingCableTVEquipment,?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,literaturesearch,GE/960507/BJ/HX,Regulationsonsatelliteandearthsegmentsaremoststringent,involvingseveralgovernmentalagencies.,Regulator,EnforcingAgency,Regulations,MinistryofRadio,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?Individualsarenotpermittedtoinstalloruseearthstationsunlessapprovedbytheregulatorybody,REGULATIONS-SATELLITEANDEARTHSEGMENT,Source:StateCouncilDecreestet,MRFT,GE/960507/BJ/HX,CableTVregulationisalsolegalisticallyverystrict.,Regulator,EnforcingAgency,MainRegulations,MinistryofRadio,FilmandTelevision(MRFT),ProvincialandlocalMRFTbureaus,?OnepubicCATVstationpermittedpercity?PrivateCATVstationsoperatedbyinstitutionspermittedtodeliverprogrammingonlywithinitspremises?AllCATVstationsrequiredlicensefromMRFT?NoindividualpermittedtooperateCATVstations?NoforeignparticipationisallowedinbuildingandoperatingCATVstations?CATVcanchargeitsusersforinstallation,service,andprogramfee.FeelevelsdeterminedbythelocalMRFTbureauandlocalpricingbureau?CATVpermittedtotransmitpurchasedprograms,exchangeprograms,andownprogramsaftersatisfyingtransmissionrequirementsofCCTV,andprovincialandlocalTVprograms.?AllprogramsrequireMRFTcensorshipapproval?Regulatoryviolationsubjecttowarning,fine,revokingofbroadcastinglicense,CATVstationdissolution,andprosecution,REGULATIONS-CABLETELEVISION,Source:StateCouncilDecree1993,MRFT,GE/960507/BJ/HX,?Allimportedandco-producedprogramsrequireMRFTcensorshipapproval?CensorshipbasedprimarilyonprotectingsocietyfromWesternspiritualpollutionintermsofmoralityandpoliticalthought.?Foreigncontentnottoexceed25%ofdailybroadcasthours?Foreigncontentnottoexceed15%ofpeak-broadcastinghours?Violationofregulatoryrulessubjecttowarning,fine,revokingofbroadcastinglicense,CATVstationdissolutionandprosecution,Contentregulationsareprimarilyafunctionofcensorship.,REGULATIONS-FOREIGNPROGRAMCONTENT,Source:StateCouncilDecree1993,MRFT,ProvincialandlocalbureausofMRFT,MinistryofRadio,FilmandTelevision(MRFT),MainRegulations,EnforcingAgency,Regulator,GE/960507/BJ/HX,GE/960507/BJ/HX,REGULATION-FOREIGNBROADCASTERPERSPECTIVES,襉urprogrammingpolicyis詎osex,noviolence,nonews,buthumorousmaterialsforentertainment沼-RobertChua,CEO,ChinaEntertainmentTelevision(CETV)襍tarTVdroppedtheBBCnewsbroadcastsinresponsetoChinesepressuresregardingBBC誷詉ndependent?reportingofChinesedomesticaffairs.?-StarTVmanager,HongKong,InnovativeforeignplayerstypicallyhaveavaluepropositiongearedtoboththeChinesegovernmentandpotentialconsumers.,GE/960507/BJ/HX,Despitestrictregulationslimitingforeignparticipation,multinationalshavediscoveredvariousmeansofenteringChina誷lucrativeTVbroadcastingindustry.,Programming,SatelliteBroadcasting,EarthStation,CATV,SpaceSegment,NumberofJVs,2,?,2,3,1,TypicalActivities,?ProducelocalprogrammingMTA-EMCI;OutlookofElectronicsMarket,1996;McKinseyanalysis,ESTIMATE,1,718,28,GE/960507/BJ/HX,GE/960507/BJ/HX,INDUSTRYSTRUCTURE,Regulatoryauthority,Nationaloperator,Regionaloperator,Provincialoperator,Local,Broadcastinginfrastructureandservice,MRFTMPSMSS,?CCTV?ForeignsatelliteTVstations(e.g.StarTV)*,?ProvincialpublicTVstations?ForeignsatelliteTVstations(e.g.HKTVBI,StarTV)*,?ProvincialpublicTVstations(usuallyoneperprovince)?ForeignsatelliteTVstations*,?LocalTVstations(usuallyoneortwo)?LocalCATVstations(usuallyoneortwo)?ForeignsatelliteTVstations*,Equipmentmanufacturing,MEI,*OperateoutsideChinaandbroadcastviasatelliteintoChina*SeeTV,CableandSatelliteDishhouseholdschartinthispack.Source:MRFT,ChinasTVbroadcastingindustryisorganizedalongnational,regional,provincialandlocallevelswhereCCTVisthesolenationalTVbroadcaster.,GE/960507/BJ/HX,GE/960507/BJ/HX,FOREIGNPLAYERSACTIVEINCHINA,1995PERCENT,Source:Literaturesearch,Broadcasters,Satelliteoperators,Set-topboxmanufacturers,Total=,11,5,4,?Intelsat?PanAmSat,?AsiaSat?Asia-PacificSatelliteTelecommunications?Rimsat,?StarTV?AustralianTVinternational?CTV?CETV?PhoenixTV?TVBI,?CNNI?ANBC?MTVAsia?ESPN?ABC-ATV1,?PanAsianSystems,?Generalinstrument?ScientificAtlanta?TRWInc.,PRELIMINARY,MultipleforeignplayersinvolvedinTVbroadcasting,satelliteoperationandset-topboxmanufacturingareactiveinChina.,GE/960507/BJ/HX,GE/960507/BJ/HX,*MostofthestationsadministratedbyCCTV*Currently,mostlylocalSource:MTA-EMCI,Kagan;literaturesearch,TVStations*,CableTVoperator*,Satelliteoperator,DOMESTICPLAYERS,1995,ESTIMATE,Chinasbroadcastingindustryismonopolisticatthenationallevel,whilecompetitiveatthelocallevel.,GE/960507/BJ/HX,GE/960507/BJ/HX,DOMESTICEQUIPMENTPRODUCER?1994,PRELIMINARY,N/A,N/A,N/A,Numberofcompanies,Averageproductionpercompany(units),N/A,*Noclearsenseatthisstageofwhoisdoingwhat.Source:ChinaElectronicsIndustryYearbook,1995,Eachequipmentsegmenthasmanyplayers.,Majorcompanies*,?BeijingZhaogeMachineryandElectronicTechnologyCo.?ChengduHuashiElectronics?ChengduKangteElectronicsHighNewTechnologyCo.?NanjingLongyanElectronicTechnologyCo.?SichuanShidaGroupCo.?SumanPioneerGroup?WanlidaElectronics?ZhejiangTongguangElectronicsCo.Ltd.?ZhenjiangXingkeCommunicationFactory,GE/960507/BJ/HX,GE/960507/BJ/HX,COMPETITION,AlthoughgovernmentownsandcontrolsChina誷TVbroadcastingindustry,competitionforviewershipandhenceadvertisingrevenueremainsfierce.Nevertheless,domesticTVstationsdocooperatethroughprogrambarteringandotherarrangements.?Inmajorcities,competinglocalandregionalterrestrialandCATVstationsoffersimilarprogrambouquetswithsimilarbroadcastingperiods.?Channelsinmajorcitymarketscompetehead-to-headforviewershipwhichisthenreflectedintheircompetitivelypricedadvertisingrates.?DomesticterrestrialTVandCATVstationsshareandrelayprogramsinresponsetothedomesticshortageofprogrammingandgovernmentrequirements.,GE/960507/BJ/HX,City,Station,TerrestrialChannels,CableChannels,ProgramBouquet,BroadcastPeriod,Beijing,CCTVBeijingTVTianjinTVHebeiTVTotal,832114,43003,GeneralEntertainmentDrama,MoviesNews,SportsInternational,CulturalEducational,Terrestrialandcablearegenerally7:00-1:00,Shanghai,STVShanghaiOrientalCCTVTotal,42410,5545,Similartoabove,Similartoabove,Guangzhou,GuangdongTVGuangzhouTVShantouTVGuangxiTVGuizhouTVHainanTVCCTVTotal,311111412,n/an/an/an/an/an/a4n/a,Similartoabove,Similartoabove,*ExcludesforeignsatellitebroadcastersSource:ChinaAdvertisingDirectory,1996;ChinaBroadcastingYearbook,1995,COMPETITIONINMAJORTELEVISIONMARKETS*,PRELIMINARY,Multiplecompetitorsineachofthemajormarketsoffersimilarprogrambouquetsandbroadcastperiods.,GE/960507/BJ/HX,GE/960507/BJ/HX,TELEVISIONBROADCASTER-VALUEPROPOSITIONS,Broadcaster,ValueProposition,CETV,褻ETVisembracedbytheChinese.becauseCETVisabletomeettheprogrammingtasteofChineseinAsia,understandtheculturalandpoliticalsensitivitiesoftheregion,createwholesomefamilyentertainmentwithoutsexandviolenceandCETVisachannelrunbyChinesefortheChinesewithlocalprogramsfeaturingsomeofthebiggestnamesintelevision.,CCTV,襑eprovidethewidestcoverageinChinaandstateregulationsrequirealllocalstationstorebroadcastourprograms.,ShanghaiOrientalTV,襎hemostprogressivetelevisionstationinChina.viewer-orientedandcreative.,STARTV,襎heonlycomprehensiveregionalsatellitetelevisionbroadcastingcompanyinAsia-Pacific.,Domesticandforeignoperatorshavevaluepropositionswhichappealtobothcustomersandgovernment.,GE/960507/BJ/HX,GE/960507/BJ/HX,Majorchannelstypicallycompetehead-to-headforviewership,asinShanghai.,DAILYREACHBYCHANNELINSHANGHAI?1990-95PERCENTOFINDIVIDUALS*,*Establishedin1993*Samplesizeof1000polledonwhetherviewedTVyesterdaySource:SRGChinaMediaIndex,CCTV-1(News),ShanghaiOrientalTV*(Variety),ShanghaiTV-1(Variety),ShanghaiTV-2(News,culture),N/A,N/A,N/A,EXAMPLE,GE/960507/BJ/HX,GE/960507/BJ/HX,.andinBeijing.,DAILYREACHBYCHANNELINBEIJING?1993PERCENT,*Samplesizeof1000polledonwhetherviewedTVyesterdaySource:SRGChinaMediaIndex;KaganAsiaPacific,1994,CCTV-1(News),CCTV-2(Economics),CCTV-3(Music),BTV-1(News,entertainment),BTV-2(Sports,entertainment),EXAMPLE,GE/960507/BJ/HX,GE/960507/BJ/HX,TELEVISIONADVERTISINGRATES,PEAKPERIOD,1995US$PER30S,*CPM:CostperthousandviewersSource:SRGChinaMediaIndex;CentralviewerSurvey;Consultingcenter;TVstationnotecards,CCTV,STARTV,BeijingTV,ShanghaiTV,CCTV誷nationalcoverageoffersextremelylowadvertisingratesintermsofcpm.,CPM*(US?,4.34,7.4,N/A,N/A,N/A,N/A,N/A,CPM*(US?,N/A,N/A,N/A,96.4,115.1,53.6,51.2,N/A,GE/960507/BJ/HX,GE/960507/BJ/HX,SHARINGANDRELAYPROGRAMSAMONGTVSTATIONS,襎hecentralgovernmentrequiresthateachprovincialandlocalTVstationspend20%ofit