中国电视产业行业研究ChinasTVindustry(ppt55)英文(1)

GE/960507/BJ/HXGE/960507/BJ/HXINTRODUCTIONThisisthefirstoffourdeliverablesoftheGEAmericomChinastudywhichanalyzesChina'scurrentTVbroadcastingindustry.ThedocumentincludescurrentTVbroadcasterrevenueandviewership,governmentregulations,industrystructureandcompetition.Inthenextphase,theteamwillworkaccordingtothestudyplananddelivertheremainingend-products:?Currenttranspondersupplyanddemand?EvolutionofChina'sTVbroadcastingindustryoverthenext5-10years?MarketentryscenariosforGEAmericomTheteamwillfocusonthevideodeliverysegmentduringtheremainderofthestudy,whileatthesametimemaintaina襜igpicture?perspectiveontheentirevaluechain.中国电视产业行业研究China'sTVindustryGE/960507/BJ/HXGE/960507/BJ/HXSUMMARYThecurrentprofileofChina'sTVindustryindicatesthedevelopmentofanattractivemarket.Multiplepotentialopportunitiesexistforcreativeforeignplayersacrosstheindustryvaluechain.Potentialparticipants,however,mustpossesstheabilitytoweatherChina'sstringentregulatoryenvironmentandfaceintensecompetitionfrombothforeignanddomesticplayers.?HighTVpenetration,rapidrevenuegrowthamidinsufficientcontentproductionandlimitedbroadcastingmediumsindicatehighpotentialforChina'sTVbroadcastingmarket.Moreover,Chineseviewersspendmuchoftheirleisuretimewatchingtelevisionintheevenings,primarilynews,drama,documentary,varietyshowsandsports(apatternsimilartoothermarkets).?China'sstricttelevisionbroadcastingregulationsarebothoutdatedanddifficulttoenforce.ForeignoperatorsandtheirChinesepartnerscreativelybypasstheseregulationsbyaddressingthegovernment'spolicyprioritiesofpreservingpoliticalstabilityandeconomicdevelopment.?China'sbroadcastingindustryisstate-ownedandcontrolled.ChinaCentralTelevision(CCTV)possessesamonopolyovernationalbroadcasts,whilecompetitionatprovincialandlocallevelsexistamongterrestrialandCATVplayers,andtoalesserextentsatelliteTVbroadcasters.Moreover,multipleplayerscreateacompetitiveenvironmentinChina'sTVbroadcastingequipmentmanufacturingsector.?AlthoughgovernmentownsandcontrolsChina'sTVbroadcastingindustry,competitionforviewershipandhenceadvertisingrevenueremainsfierce.Nevertheless,domesticTVstationsdocooperatethroughprogrambarteringandotherarrangements.GE/960507/BJ/HXGE/960507/BJ/HXREVENUEANDCUSTOMERHighTVpenetration,rapidrevenuegrowthamidinsufficientcontentproductionandlimitedbroadcastingmediumsindicatehighpotentialforChina'sTVbroadcastingmarket.Moreover,Chineseviewersspendmuchoftheirleisuretimewatchingtelevisionintheevenings,primarilynews,drama,documentary,varietyshowsandsports(apatternsimilartoothermarkets).?ChinahashighTVpenetrationrateanditstotalTVoperatorrevenuesincreaseddramaticallyoverthelastfouryears,mainlydrivenbyTVadvertising?TerrestrialTVisthemainbroadcastingmediuminChina,withCATVmakingsignificantinroadssincetheearly1990s.DomesticTVprogramproductioncapacity,despiteitsrapidgrowth,isinsufficienttomeetdemand.?TelevisionisthemediumwhereChina'sviewersspendmostoftheirleisuretime.Viewersprefertowatchnews,drama,documentary,varietyshowsandsportsduringpeakeveningbroadcasthours.GE/960507/BJ/HXGE/960507/BJ/HXTELEVISIONHOUSEHOLDPENETRATIONANDGROWTH*NotethatcolorandB&WTVpenetrationarenotmutuallyexclusiveSource:ChinaStatisticalYearbook758619921994UrbancolorTVpenetrationUrbanB&WTVpenetrationCAGR=7%383119921994CAGR=-10%5814199019921994RuralcolorTVpenetration405262199019921994RuralB&WTVpenetrationCAGR=29%CAGR=12%1994Nationaloverallaverage:86%ChinahasahighTVpenetrationrate.GE/960507/BJ/HXGE/960507/BJ/HXTVOPERATORREVENUEANDGROWTH*IndustryadvertisementandsubscriptionrevenueonterrestrialcableandsatelliteTV,in1994constantdollarSource:StatisticYearbooks1995;1995PanAsiaSatelliteandCableTV(PASCATV)Conference;McKinseyanalysisESTIMATE2%76USAChina1994TVoperatorrevenue*PercentofGDP0.8%0.1USAChinaTVrevenuegrowthCAGR(90-94)PercentTVoperatorrevenuegrewrapidlyoverthelastfouryears,andhasanenormousroomforfurthergrowth.GE/960507/BJ/HXGE/960507/BJ/HXSIGNIFICANCEOFTVADVERTISEMENTFORBROADCASTERS,1994US$MILLION,PERCENTSource:StatisticalYearbooks1995,1995PASCATVConference,McKinseyanalysisUSChinaComments100%=$53billion100%=$0.7billion?CATVandsomesatelliteTVaresubscription-basedinChina(e.g.CNNI,CNBC)?MajorityofsatelliteTVisfree-to-air,excepttohotelsandresorts?CATVchargessmallmonthlyfeeRMB?0-20/month?Estimated25-35millionCATVHH,and1millionsatelliteTVHHinChina64%Advertising36SubscriptionTVadvertisingincomemakesupthelion'sshareofbroadcasterrevenue.GE/960507/BJ/HXGE/960507/BJ/HXTVisanimportantadvertisingmedium.COMPETITIONAMONGADVERTISINGMEDIA?1994*Includesoutdoor,directresponseandothertypesofadvertisingSource:ChinaAdvertisingAssociation;AdvertisingandMediaFactBook;ChinaStatisticalYearbook1995Newspaper25.0%TV22.3Radio2.5Magazine2.0Others*48.2ChinaUSNewspaper23.7%TV22.7Outdoor22.5Directresponse18.1Radio6.7Magazine5.4Other0.8100%=$2.3billion100%=$148.2billionGE/960507/BJ/HXGE/960507/BJ/HXTOTALTELEVISIONADVERTISINGEXPENDITURESINCHINA?1990-94*US$MILLION*CurrentpricesSource:Zenithmedia,1995658235651188719901991199219931994CAGR=92%Advertisingexpendituresincreaseddramaticallyoverthelastfouryears.GE/