In a circular published on its website, the State Administration of Radio, Film and Television (SARFT) wants TV stations to adjust advertising spot arrangements and reorganise ad schedules to ensure that commercials are removed from each forty-five minute drama episode, starting from the new year.
TV stations could be "severely punished" or face the suspension of their broadcast operations if they breach the rule. China's media regulator stressed the need to "improve the level of public cultural services" as an important responsibility that television broadcasters should bear.
A SARFT spokesman pointed out that television is a "spiritual and cultural product of the people", and the cancellation of TV commercials during dramas was in line with the interest of the masses.
The move is seen to have an impact on advertising revenue originally scheduled for 2012, as it comes after CCTV's annual auction that drew US$2.25 billion worth of advertising time slots for the year ahead. TV advertisers are likely to move money to other media such as online video and outdoor advertising, according to industry sources.