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TV stations cooperate in new venture

By Liu Wei (China Daily)
Updated: 2010-05-27 11:14

BEIJING - Two TV stations have joined hands to launch a trend that will likely lead to a more market-driven TV industry in China.

Qinghai Satellite TV announced the start of its new programming on Wednesday, based on a close cooperation with Hunan Satellite TV, which has made its name in entertainment programs.

The deal is the first such cooperation between two provincial satellite TV stations in China.

The two have co-founded a production company in which Qinghai TV holds 51 percent of the shares and Hunan 49 percent, says Nie Mei, a top official of Hunan TV who is co-leading the project.

The company not only makes TV programs, but also handles the business operation of Qinghai TV.

Qinghai TV will continue to produce its local news, but will buy other programs mainly from the joint company.

Among the company's staff, so far those from Hunan make up the majority. Staff from the two TV stations will create a joint committee to decide which programs to release.

The deal, which is contracted to last for 15 years, benefits both, said Miao Di, professor of Communication University of China.

"I see it as progress in China's TV industry, which may lead to a new trend," Miao said.

"For a long time China's TV stations were seen as affiliations to local governments, but this cooperation shows that they are becoming more market-oriented and innovative in exploring new development modes."

Only satellite TV stations can air programs across the whole country, Miao explained.

Thanks to Hunan TV's strong ability in producing TV content, most of the new company's output will be made by Hunan staff.

So the cooperation offers Hunan TV an additional broadcasting platform covering the country.

Meanwhile, Qinghai TV will learn from the experienced Hunan staff in producing and promoting TV programs, and will strengthen its influence, thanks to Hunan's power in the industry.

Nie emphasized, however, Qinghai TV is not simply a broadcasting platform for Hunan TV.

"With the cooperation, Qinghai TV will better confront the fierce competition in the industry," she says.

Jin Heqing, head of Qinghai TV, agrees.

"Qinghai boasts amazing scenery, natural resources, a rich culture of multi-ethnic groups, and a national broadcasting platform, while Hunan, the leading player in the TV industry, excels in management, innovation, talent and technology," he said.

The first show the new Qinghai TV is strongly promoting is "Blossoming Flowers," a girls' talent contest show. This genre is what Hunan TV is adept in, experts said.

A girls' singing contest named "Super Girls" is how Hunan began its reputation as an entertainment show giant.

China has about 30 provincial TV stations. Except for a few, including Hunan TV and Shanghai Dragon TV, most are small in scope and influence.

Qinghai used to be among those that were poorly run. The intense competition and heavy cost was the main obstacle, TV insiders said.

Qinghai turned to several partners before Hunan, including Murdoch's Star TV in 2005. Star co-produced some shows and broadcast them in Qinghai TV, but due to the limitations on foreign capital's entry into local TV, the cooperation lasted only several months.