The Asia Times: Sex and the City (and China' s media crackdown)
"So far, foreign media companies have had two basic ways to participate in China's TV market: either through licensing of content or through broadcasting. The presence of import quotas and scarcity of cash available from most TV stations to pay for program licenses has prompted large foreign media companies to aggressively pursue the broadcasting option."
"Advertising expenditure in China has been growing an average of 40% per annum over the last five years, with 2004 ad spending estimated at $23.3 billion and TV ads accounting for an estimated 50% of the total. Companies such as Viacom, News Corporation and Time Warner have therefore been very keen to set up some form of channel presence in the market as a way to tap into the pool of investments available and, at the same time, build up broadcasting assets in what is already the largest TV market in the world in terms of the number of viewers."
"There is, however, a problem: regulations do not allow foreign channels into the country, and ownership of local channels by foreign companies is strictly prohibited. That is why, over the years, some foreign media companies have become very proficient in learning alternative ways to get on local TV sets."
"It is important to note that these media companies are unlikely to have done anything illegal. Rather, they have learned how to fulfill market needs and rely on local third partners to do any necessary ' spadework' . This is a common approach for foreign businesses in China, since the opacity of regulations makes it easier to ask for forgiveness than to ask for permission. Below are some of the most common workarounds adopted to distribute foreign channels into China."
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