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Rumor: SARFT to Ban Cooperation between Video Websites, TV Makers

Netease Tech, 7/20/09

Industry sources have claimed that China's State Administration of Radio, Film & Television will restrict cooperation between online video websites and television set manufacturers, saying the government agency is currently discussing penalties and could soon issue a decision as to what is permissible.

One industry insider believes the move is very likely because Beijing's Haidian District People's Court previously sent a court notice advising SARFT that due to concerns over piracy, China is ill-suited for free online video services.

Another industry source said SARFT has already contacted numerous consumer electronics manufacturers including Haier (1169.HK), TCL (000100.SZ), Hisense (600060.SH) and Changhong (600839.SH) as well as websites that hold audiovisual network access permits to inform them they may not cooperate, but this news has yet to be confirmed.

A third source expressed doubts, saying that these rumors had already circulated briefly within the industry but the situation is still unclear. The source said that the Ministry of Industry and Information Technology (MIIT) is in talks with SARFT and the entire industry awaits their final decision.

Other prominent members of the industry, however, said they had heard nothing of this matter.

Keywords: 000100.SZ MIIT Changhong consumer electronics Haier Hisense Internet online video SARFT TV set 1169.HK 600060.SH 600839.SH regulation Internet TV Beijing Haidian District People's Court

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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