China Media Booms

No one really knows how many television stations there are in China. Best estimates put the number at 5,000. Yet, just over ten years ago there were no more than 40. The number of newspapers has increased from around 200 to more than 2,500, radio stations have blossomed from a 100 to 1,200 and TV and radio penetration is now over 85 percent.

In just, 10 years, the media in has exploded. But it is still heavily regulated and owned and controlled by the state run Communist Party. Most local media is pro-China in its content and style and is used as a tool for control and influence over the country's huge population.

There are also limits on foreign journalists - where they can travel and to whom they can speak. Overseas media regularly have their offices screened and their activities are closely monitored.

Taiwan, Tibet and human rights issues are strictly off the editorial agenda.

Despite this, consumerism has well and truly arrived in China. There's now an increased sophistication in the market - and marketing communications, brand management and reputation building have become big business.

There is no such thing as privately owned media in China - and foreign companies are restricted. Consumerism is driving up advertising revenue. The dominant Chinese television network, CCTV is said to earn a total of 1 billion yuan or A$200 million a year.

So in this environment how can Australian companies effectively get their message across and plan marketing communications strategies in China?

The first thing to understand is how companies will have to work in a very complex and constantly changing regulatory environment.

"China is very conscious of reforming its media and has some relatively progressive thinking internally about where to take it," said Gary Davey CEO of Star TV in Hong Kong. "But it's going to take a very long time because they are equally sensitive about the importance of control."

An older generation of bureaucrats still sees the media, and television in particular, as a propaganda device and any attempt to reform it into a commercially driven business raises great suspicion amongst the Chinese leadership.

In the past the News Corporation owned STAR TV has upset Chinese authorities and Davey is quick to point out the sensitivities of the Chinese marketplace, especially when it comes to cultural differences.

"You might be able to run a successful State-run security operation by trying to force your own cultural values down someone else's throat, but you certainly can't run a business doing that."

STAR TV has had to develop strategies that fit these realities. "We've created new companies with Chinese partners to play a part in the evolution of the policy," Davey said.

The days of handing out long red envelopes filled with cash to journalists at press conferences in China could also well be over. The industry is trying to clean up its act and has recently released a new code of practice for both public relations professionals and journalists.

The local media is still very pro-China in its content and style but the practice of accepting cash and gifts in return for running positive stories is now being phased out.

Tony Turner has worked in corporate communications in China for over 25 years and is the Hong Kong based Chairman of the Rowland Company.

He says in the past there has been a degree of cronyism, corruption and lack of transparency in the media but that is changing as Western-based multinationals entered the market with a new set of communication standards.

"What we've got today in Hong Kong is a highly professional, highly inquisitive and free media," he said.

Turner believes many multinationals don't want their name tarnished by being caught for paying journalists.

"The opportunity for PR and professional PR is as great as it ever could be," Turner said.

This view is reflected in Beijing where Gua Hu-ming heads up the China International Public Relations Association. He says PR as a profession, started in China 15 years ago and first appeared in joint venture hotels.

In the past it has been standard practice for reporters to accept cash and gifts in return for running positive stories or even working in conjunction with investors to ramp up the stock market.

But this is changing Mr Gua believes the Chinese media and

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