【正文】 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 mill。 Central viewer Survey。 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。 literature search TV Stations* Cable TV operator** National 1 Provincial 25 Local 616 Public operator ~500 Private operator ~600 Stateowned 1 Satellite operator DOMESTIC PLAYERS, 1995 ESTIMATE China39。 McKinsey analysis 672 518 350 150 Subscription Advertising Cable work Equipment Satellite Equipment Settop box* Total Revenue ESTIMATE 1,718 28 GE/960507/BJ/HX INDUSTRY STRUCTURE Regulatory authority National operator Regional operator Provincial operator Local Broadcasting infrastructure and service MRFT MPS MSS ?CCTV ?Foreign satellite TV stations (. Star TV)* ?Provincial public TV stations ?Foreign satellite TV stations (. HK TVBI, Star TV)* ?Provincial public TV stations (usually one per province) ?Foreign satellite TV stations* ?Local TV stations (usually one or two) ?Local CATV stations (usually one or two) ?Foreign satellite TV stations* Equipment manufacturing MEI * Operate outside China and broadcast via satellite into China ** See TV, Cable and Satellite Dish households chart in this pack. Source: MRFT China39。 MTAEMCI。s TV broadcasting industry remains relatively small. The state owns and controls the industry with CCTV being the sole national TV broadcaster (via satellite). Although foreign broadcasters do offer programming to China via satellite, no foreignowned TV stations currently exist in China. ?Provincial