China Business News, 3/31/08
According to an informed source, SARFT will issue a "License for Publication of Audio-Visual Programs through Information Network" to approximately 10 companies in April. Three private operators, including video-on-demand sites Joy.cn, 51tv and Enlight Media's netandtv.com, are expected to obtain new licenses, while the remaining recipients will all be State-owned firms. Some of the licenses will be valid as of March 31. Tudou, 56.com, and other sites that focus predominately on facilitating user-generated video uploading and sharing have not appeared on the list of approved sites.
The source explained that the main reasons behind approval of Joy.cn and 51tv are that they primarily provide video on demand (VOD), thus avoiding copyright issues, and employ appropriate content monitoring, but said there were also other factors. Joy.cn is already engaged in content-based cooperation with 300 film and television production agencies, as well as more than 30 satellite and local television stations nationwide, including TVB, ATV, EMI, and Huayi Brothers.