HBO in major deal for CCTV airtime

The move is seen as a major development as it has the potential to take HBO nationwide while other foreign broadcasters are limited to Southern China. It is also a boost to China's pay-TV industry, which has been struggling to increase penetration.

According to Jonathan Spink, CEO at HBO, the move will see three HBO films broadcast across the country each day. The deal comes into effect in January. "This is a very significant move as before we only had business in hotels and foreign housing compounds," said Spink.

ZenithOptimedia's vice-president for strategic resources, Zoe Tan, described the deal as a "significant development" for both HBO and China's pay-TV industry.

"HBO exemplifies the Hollywood capitalistic ideology which was typically not endorsed here in China. Making it part of the media diet (even selectively) represents a major change in the beginning of satisfying consumers needs first not the Party's needs," said Tan.

"It is also significant for the pay-TV industry in China because they will see that 'giving the audience what they want' rather than 'giving them what the suppliers have' is the only effective means of generating media dependency and ultimately business revenue."

While subscriber figures of CCTV's pay-TV channel are not available, viewer numbers are believed to be "very small". Noted Tan: "People who are willing to pay extra to get additional programming are not the proverbial people on the street; they are already getting more than 40 channels for an average of monthly Rmb10 or less."

Potential viewers, she added, may already have access to international programming through the installation of Ku-band satellites. "Pay-TV will compete against satellite dish owners (legally or illegally), just like in the West."

In a separate development, CCTV has launched a new 24-hour channel (CCTV-E&F) providing viewers with Spanish- and French-language programming, including news, documentaries, and dramas.