By Gordon Chu | October 13, 2009
Recent news came out from China stating that they plan to spend billions of dollars in the next few years to develop media and entertainment companies to that of global media conglomerates such as News Corporation and Time Warner.
With top-level guidelines set by China’s State Council, the overall plan envisions the creation of entertainment, news, and culture companies that depend less on government backing, and more on private investments both local and abroad. In short, China will finally open up doors to foreign investments and control.
A bit of background on the China media market – for years, the market has been tightly controlled by the Chinese government. With influence both on the content creation process as well as on distribution, the Chinese government really has had full-reign and control on the entire media market in China. With CCTV on-hand and a number of large provincial players (i.e. Shanghai Media Group, Beijing TV, etc.) that are also state-run, international media companies such as Time Warner or News Corporation have had many difficulties effectively penetrating the Chinese market.
However, with this announcement, China is taking the first step towards evolving their media industry.