SATELLITE & CABLE: MTV Mandarin forecasts break-even point to be reached in just three years

MTV Mandarin is capitalising on its flourishing growth in

penetration and advertising sales in China, where the nation's

successful bid to join the World Trade Organisation will be a

significant revenue driver for the network.

"China is the most important market and we are doing things within the

legality of China policy," said MTV North Asia senior vice-president and

managing director Harry Hui.

In the past five years, Mr Hui said MTV had maintained "good corporate

citizenship" in China, where the network has carefully monitored its

programming frame by frame to ensure the channel is operating within the

mainland's legal framework.

The music network is forecasting that it will break even in China in two

to three years' time, according to Mr Hui, who said that MTV expected to

generate triple-digit advertising revenue growth over the next year,

buoyed by sponsorship and airtime sales.

Advertisers on board with MTV China include Lipton, Vidal Sasoon,

Adidas, Nokia, Rejoice and Swatch.

Reaching 45 million mainland households through day-part distribution,

Mr Hui said MTV was the largest distributed foreign network following

ESPN, and the number of system operators delivering the channel had

grown by 31 per cent, to 38 cable suppliers.

With localisation the key to attracting viewers, Mr Hui said MTV had

created three tailor-made programmes: MTV Countdown, MTV Tian Lai Chu

and MTV English.

The network also recently signed a distribution pact with terrestrial

station Beijing TV, reaching 20 million homes, with advertising revenue

to be shared by both parties.

The 1999 CCTV-MTV Music Honors, sponsored by Carlsberg and Siemens AG

Private Communications Systems, recorded average ratings of 4.2 per cent

in Beijing.

The broadcast of music awards show had earlier been put on hold because

of the Nato's bombing of the Chinese embassy in Belgrade; the programme

finally aired on CCTV 1, 3 and 4 last November, reaching 12.5 per cent

of the targeted 15-to-24 age group.

"We will air portions of the show on MTV's global network, reaching more

than 300 million households across 83 territories," said Mr Hui.