【正文】 . ?Domestic terrestrial TV and CATV stations share and relay programs in response to the domestic shortage of programming and government requirements. GE/960507/BJ/HX City Station Terrestrial Channels Cable Channels Program Bouquet Broadcast Period Beijing CCTV Beijing TV Tianjin TV Hebei TV Total 8 3 2 1 14 4 3 0 0 3 General Entertainment Drama, Movies News, Sports International, Cultural Educational Terrestrial and cable are generally 7:001:00 Shanghai STV Shanghai Oriental CCTV Total 4 2 4 10 5 5 4 5 Similar to above Similar to above Guangzhou Guangdong TV Guangzhou TV Shantou TV Guangxi TV Guizhou TV Hainan TV CCTV Total 3 1 1 1 1 1 4 12 n/a n/a n/a n/a n/a n/a 4 n/a Similar to above Similar to above * Excludes foreign satellite broadcasters Source: China Advertising Directory, 1996。 China Broadcasting Yearbook, 1995 COMPETITION IN MAJOR TELEVISION MARKETS* PRELIMINARY Multiple petitors in each of the major markets offer similar program bouquets and broadcast periods. GE/960507/BJ/HX TELEVISION BROADCASTER VALUE PROPOSITIONS Broadcaster Value Proposition CETV 褻 ETV is embraced by the Chinese ... because CETV is able to meet the programming taste of Chinese in Asia, understand the cultural and political sensitivities of the region, create wholesome family entertainment without sex and violence and CETV is a channel run by Chinese for the Chinese with local programs featuring some of the biggest names in television. CCTV 襑 e provide the widest coverage in China and state regulations require all local stations to rebroadcast our programs. Shanghai Oriental TV 襎 he most progressive television station in China ... vieweroriented and creative. STAR TV 襎 he only prehensive regional satellite television broadcasting pany in AsiaPacific. Domestic and foreign operators have value propositions which appeal to both customers and government. GE/960507/BJ/HX Major channels typically pete headtohead for viewership, as in Shanghai. DAILY REACH BY CHANNEL IN SHANGHAI ?199095 PERCENT OF INDIVIDUALS** * Established in 1993 ** Sample size of 1000 polled on whether viewed TV yesterday Source: SRG China Media Index 28 41 45 37 26 34 1990 1991 1992 1993 1994 1995 CCTV 1 (News) 48 39 38 1990 1991 1992 1993 1994 1995 Shanghai Oriental TV* (Variety) 44 57 56 59 47 47 1990 1991 1992 1993 1994 1995 Shanghai TV 1 (Variety) 30 27 12 18 22 35 1990 1991 1992 1993 1994 1995 Shanghai TV 2 (News, culture) N/A N/A N/A EXAMPLE GE/960507/BJ/HX ... and in Beijing. DAILY REACH BY CHANNEL IN BEIJING ?1993 PERCENT * Sample size of 1000 polled on whether viewed TV yesterday Source: SRG China Media Index。 Kagan Asia Pacific, 1994 61 70 61 67 1990 1991 1992 1993 CCTV 1 (News) 23 24 30 23 1990 1991 1992 1993 CCTV 2 (Economics) 7 8 5 19 1990 1991 1992 1993 CCTV 3 (Music) 38 56 54 49 1990 1991 1992 1993 BTV 1 (News, entertainment) 20 13 13 19 1990 1991 1992 1993 BTV 2 (Sports, entertainment) EXAMPLE GE/960507/BJ/HX TELEVISION ADVERTISING RATES, PEAK PERIOD, 1995 US$ PER 30S * CPM: Cost per thousand viewers Source: SRG China Media Index。 Central viewer Survey。 Consulting center。 TV station note cards 9,639 1,927 783 CCTV1 CCTV2 CCTV3 CCTV 2,600 1,000 850 800 Phoenix Chinese Star sports Star plus Channel V STAR TV 3,855 843 265 BTV1 BTV2 BTV3 Beijing TV 3,373 3,108 1,446 1,229 361 STV 1 Oriental STV 2 STV cable1 STV cable2 Shanghai TV CCTV誷 national coverage offers extremely low advertising rates in terms of cpm. CPM* (US? N/A N/A N/A N/A N/A CPM* (US? N/A N/A N/A N/A GE/960507/BJ/HX SHARING AND RELAY PROGRAMS AMONG TV STATIONS 襎 he central government requires that each provincial and local TV station spend 20% of its broadcast time relaying CCTV1 programs where refusal results in the revoking of the broadcasting license.? CCTV President Assistant 襑 e have extensive program purchase and exchange agreements with nearly all the major production studios and broadcasters around the world. In the case of domestic stations, we have extensive barter and cooperative relationships.? CCTV President Assistant 襑 e make some local programs ourselves, but it is not enough. Thus, we receive programs from CCTV via satellite and broadcast the programs directly on our work. We pay RMB?2 per subscriber per month and CCTV keeps all the revenue from advertisements contained within the program. This solves our program shortage, but as a result, customers have less viewing variety.? CATV manager in Eastern China Domestic TV stations share or rebroadcast programs due to government regulations and program shortages. GE/960507/BJ/HX APPENDIX ?Foreign content providers in China ?Foreign TV broadcasts reaching China ?Domestic Satellite TV broadcaster ?Satellite operators with China footprint ?Foreign CPE manufacturer activities in China ?TV channels with national coverage in China ?TV broadcasting petition in major cities ?China CATV in major cities GE/960507/BJ/HX Provider Ownership Date launched Type Program Content Broadcast medium Details ABC ATVI American Broadcasting Corporation 1994 Cable Supply programs for new cable TV works of 8 million subscribers in Guangdong and other parts of China Chinese Entertainment Television (CETV) Robert Chua (30%) 1994 Cable Apstar 1 Carriage and coproduction agreement with China TV pany (represents 37 local stations serving 170 mil