According to China's State Administration of Radio, Film and Television (SARFT), China's TV and radio broadcasting industry revenue exceeded RMB 210 bln in 2010, with CCTV, Shanghai Media Group (SMG), and Hunan Broadcasting System (HBS) each taking in over RMB 10 bln in revenues.
According to an SMG executive, SMG saw 2010 revenues reach RMB 11.3 bln, continuing to surpass HBS, while SMG parent company Radio and Television Shanghai (RTS) had total ad revenues of RMB 4.55 bln, also exceeding HBS.
Although SMG subsidiary Dragon TV's ad revenue did not match HBS subsidiary Hunan Satellite TV's RMB 3.6 bln, thanks to the Shanghai 2010 World Expo and the 2010 World Cup in South Africa, RTS's total ad revenue still exceeded HBS's revenue by RMB 300 mln.
In terms of traditional TV advertising revenues, SMG and HBS remained the top two provincial operators, followed closely by Zhejiang Radio and TV Group with RMB 3.21 bln, Beijing Radio and Television with RMB 3.1 bln, Jiangsu Broadcasting Corporation with RMB 3 bln, and Anhui Radio & Television with RMB 2.14 bln. CCTV's total traditional TV ad revenue for 2010 was RMB 17 bln, nearly as much as the top ten provincial cable TV operators' revenues combined.
The revenue of top three operators (CCTV, SMG, and HBS) in 2010 accounted for 45% of total industry revenue. While combined revenue for the top ten operators rose 15% YoY, revenue for China's more than 1,000 other operators fell, bringing overall industry growth to less than 9% YoY.
SMG's Oriental CJ Shopping Channel saw 2010 revenue reach RMB 5 bln, while HBS's TV and online shopping channel Happigo completed RMB 250 mln in funding in preparation for an IPO. CCTV's national online TV station, CNTV, reported approximately RMB 500 mln in World Cup related revenues, two-thirds of which came from licensing of video broadcasting rights, while the remainder came from advertising and mobile properties.
The joint IPTV service between SMG subsidiary BesTV and China Telecom (NYSE: CHA; 0728.HK) took in nearly RMB 400 mln in revenue, with net profit exceeding RMB 200 mln.
Wu Chunyong, analyst at Beijing-based online broadcasting industry news portal Sarft.net, said that it is unclear how active CCTV is in the IPTV space since it must coordinate with local broadcasters, and that if CNTV begins to aggressively pursue IPTV it will indicate that SARFT has found a suitable method for CCTV to coordinate with local stations.
Keywords: national statistics market size growth rate Beijing Radio and Television Anhui Radio & Television Wu Chunyong regulation China Telecom 2010 World Expo Shanghai Media Group TV advertising Radio and Television Shanghai IPO IPTV funding revenue television Oriental CJ Happigo cable TV CCTV Hunan Satellite TV SARFT BesTV Dragon TV Jiangsu Broadcasting Corporation 0728.HK CHA Hunan Broadcasting System CNTV Zhejiang Radio and TV Group TV shopping channel