China Securities Journal, 4/14/08
Television ad agency and media services firm China Television Media (600088.SH) has announced it is to quit operating CCTV's paid HDTV channel, canceling its agreement with China Digital Media. However the company indicated it intends to be involved in CCTV's free-to-air HDTV channels.
The agreement between the two companies saw China Television Media take a 70% cut of advertising income once local networks had taken their share, with China Digital Media receiving the remaining 30%, and was to run from January 1, 2007 to the end of 2011. However, according to China Television Media, current performance indicates an unpromising outlook for CCTV's paid HDTV output.
Editor's Note: In its recently released 2007 earnings report, China Television Media provided details on revenues from CCTV's premium HDTV channel. To view these details, please see "China Television Media Reports 22% Profit Growth in 2007", MD 4/11/08 issue.