Alex Abplanalp CEO, Zenith Media China
What does News Corp's reduction of its Phoenix stake and its alignment with China Mobile say about foreign media prospects in China? <br><br>
It highlights the challenges that foreign broadcasters have in getting access to a US$4.7 billion TV market where media ownership and content is government-controlled. It also indicates a change in News Corp's strategy there, which was built on the assumption that the broadcast sector would gradually open up. Murdoch is now betting on wireless media services.<br><br>
Given the difficulties foreign media broadcasters are facing in China, can we expect more to review their strategies in the market?<br><br>
Even at this point in time, foreign broadcasters have access to less than one per cent of total TV advertising and this not going to change in the near future. Murdoch still retains a foothold in the TV sector with a 17.6 per cent share in Phoenix TV, as well as gaining access to new media opportunities as telecommunications, media and the internet converge. <br><br>
How will the move affect China's local television networks? <br><br>
It will have minimal effect. The established Chinese TV networks generate over 99 per cent of total TV advertising expenditure and will continue to see dynamic growth as the sector further consolidates into powerful city, provincial and national broadcast conglomerates.<br><br>
Do foreign broadcasters have anything to offer advertisers?<br><br>
Very little, as they cannot deliver mainstream audiences across China. Overseas media groups such News Corp, Viacom and Time Warner are restricted either to landing rights in Guangdong province, upscale hotels, approved expatriate living areas or programme syndication arrangements. <br><br>
How can foreign media owners maximise their potential in a heavily regulated environment ?<br><br>
All of the media have different degrees of regulation, access and, therefore, potential. The most heavily regulated are TV and newspapers, which together represent 75 per cent of total China adspend — but are essentially off limits to foreign media owners. Outdoor is less restricted, while online and new media offer opportunities for foreign investment and partnerships. <br><br>
What will it take for China to relax current market regulations ?<br><br>
It would require the Government to loosen its control on broadcast and news media. This is not going to happen in the foreseeable future, because it is not in its best interests to do so, either politically or commercially. Furthermore, there were no obligations to deregulate mainstream media as part of the WTO agreement.<br><br>
Marcel Fenez Asia-Pacific leader, entertainment and media practice, PwC
What does News Corp's reduction of its Phoenix stake and its alignment with China Mobile say about foreign media prospects in China? <br><br>
Things have been difficult for foreign media players in China for the last year, but I do not believe that it is appropriate to draw any adverse conclusions just from this deal. It is a reflection of the ongoing pattern of content owners and telcos getting closer to exploit the opportunities of convergence. <br><br>
Given the difficulties foreign media broadcasters are facing in China, can we expect more to review their strategies in the market?<br><br>
Every global media player must have a long-term strategy. It requires media owners to take a more holistic view of the market and to identify ways of working with the local industry as it goes through further change in terms of commercialisation and rationalisation. <br><br>
How will the move affect China's local television networks? <br><br>
This deal is about telcos and content providers teaming up, which should give content developers more channels for distribution. However, getting the right business model for such a development remains an issue.<br><br>
Do foreign broadcasters have anything to offer advertisers?<br><br>
I would hope so. In the context of what is and is not possible, it is about translating existing brand values to the China market, which is often done through sponsorship and on-ground events. <br><br>
How can foreign media owners maximise their potential in a heavily regulated environment ?<br><br>
This is all about creating regulatory space, crafting and communicating a value proposition that encourages opportunities. To exploit these opportunities, media owners must create 'made for China' solutions, rather than replicating their home market strategies.<br><br>
What will it take for China to relax current market regulations ?<br><br>
China is keen to participate on a global level in all areas and industries. The domestic media industry still has to go a long way to be competitive; a full opening up of the media market may take some time. The implications of convergence may provide an opportunity for broader collaboration as regulations in such areas continue to evolve.<br><br>
