Tom Group, which acquired a majority stake in CETV from AOL Time Warner in 2003, claims CETV's Q1 revenues this year hit HK$4 million (US$513,000), surpassing figures for the whole of 2002 when the channel was bleeding cash under Time Warner management.
According to a Tom Group spokesperson, the company is seeking to turn around the channel over the next three years and has set a revenue target of US$6 million for 2004. She said the revamp would include a hike in locally-produced programming to 40 per cent of all shows. "In terms of programming, prior to Tom undertaking management, approximately 25 per cent was original production. Our target year-end composition is 60 per cent acquired programmes versus 40 per cent original production," she said.
CETV has also put in place an internal sales team and appointed local advertising agencies Rui Long and Hairun. "Although the channel has been in operation for a long time, it is still in a start-up situation. We need to build sales and the marketing function from ground up. Its historical revenue (US$500,000 in 2002) was low compared to (rival channels) Phoenix and Xingkong. Brand awareness as compared with Phoenix is much lower in China because of a previous lack of marketing initiatives," said the spokesperson.
The 24-hour Mandarin-language satellite channel broadcasts in Guangdong, as well as in mid- to upscale hotels and compounds for foreigners in the country.
Lowe China media director Michael Cheung said its limited coverage was a factor: "Competition is fierce and the station is ranked relatively low in terms of its rating, ad revenue and marketshare. The set up of the internal sales team is good news. This should boost ad revenue and client service. By just using sales representatives, advertisers needs would not have been met, as there would have been less flexibility in service."