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China / Cover Story

Spread the news - this story will run and run

By Jiang Xueqing and Zhang Lei (China Daily) Updated: 2014-03-13 08:44

The advantages offered by the Internet, such as differing modes of transmission characterized by interaction, fragmentation and segmentation, have led leading media players such as Ouyang to ponder the development of new apps that will facilitate better integration of traditional content and new media.

"I think good integration comes from making the content better meet the needs of the audience, making it easier for them to see and digest it. The traditional media shouldn't try to produce a new-media layout in isolation. Instead, it will have a greater chance of success through cooperation with the big Internet companies," he said.

"That's the first priority. The second is to develop a healthy industry chain via the Internet. For example, after the success of Dad, Where Are We Going? (a parenting reality program in which fathers and children have to complete a set of tasks without the aid of the mother) Hunan TV, the maker, came up with mobile games and a movie, which extended the program chain," Ouyang said.

Hunan TV's attempts to assess whether its content will integrate effectively with new media outlets are at an early stage, he said. Often, it's only when a program's first season has been successful that the producers will fund a second season and explore other products, such as games and movies. "Generally, the ability to assess programs lags behind the development of the industry chain, but I think that will improve over time," he added.

Financial headaches

Cost is still a headache for content producers. Video sites have yet to produce a mature business model and are still eating money. But traditional media content is expensive to produce, often because of the cost of employing celebrities to front or appear on programs. Dad, Where Are We Going? features five regular celebrity guests, one of whom is reputed to receive 6 million yuan ($977,000) per episode. Also, the rising costs of equipment and manpower have seen production costs increase and outstrip profits.

Ouyang said Hunan TV originally insisted that its output should be broadcast on TV before it was made available via new media players. However, the company relented because of concerns that pirated content would be uploaded onto the Internet. However, the fact that new media outlets, such as video-streaming sites, are willing to buy original content indicates that progress is being made.

"Now we have good content and have opened up the industry chain. As new media refines the traditional platform, traditional content can be distributed to a bigger audience," Ouyang said.

Zhejiang TV sold the Internet broadcast rights for the second season of its hit talent show, The Voice of China, to the online streaming site Sohu TV for 100 million yuan. The program attracted advertising revenue of 1.6 billion yuan, accounting for 16 percent of Zhejiang Radio and TV Group's total 2013 revenue.

Cheng Weidong, another of the vice-chairmen of the Chinese Television Artists' Association and a former editor-in-chief of Zhejiang Radio and TV, said when you come up with a quality program, you needn't fear any other media. In addition, Zhejiang TV produces high-quality videos that are made available via new-media providers, so it doesn't matter whether viewers watch the program on a computer or a phone, the content is always provided by the channel.

"I believe we are getting closer to a feasible operating and profit model that integrates new media. If The Voice of China became available on mobile terminals, telecom operators could charge viewers 3 yuan for a song on demand and the producers of the original content would receive 1.5 yuan from them every time the song is streamed," Cheng said.

"Complementary fusion" with new media has become a reform trend, but many industry leaders believe that a host of challenges lie ahead.

"A revolution will take place if we change our mind and let new media take the lead during the process of fusion," said China National Radio's Wang Qiu. "It will disrupt some of our operating patterns and procedures, including personnel, organizational structure and management."

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