Media group Shifang Holding said it would continue expanding co-operation with newspapers in the second and third-tier cities on the mainland, believing the price of advertising in print in these cities would maintain double-digit growth this year.
The company also hoped government pressure to make formerly government-supported and wholly owned media fend for themselves would create opportunities for private players like Shifang to take stakes in mainland media groups.
Shifang provides editorial content mainly for newspaper clients and some online clients.
Chairman and chief executive Chen Zhi said Shifang would spend up to 200 million yuan (HK$237 million) acquiring shares of media companies, although this was not set in stone. 'It depends on whether the reforms are implemented smoothly,' he said.
Nearly 80 per cent of the company's revenue came from newspaper advertising and 12 per cent from online services. Chen said. 'This year, the proportion of digital media's contribution will increase, but newspapers will still dominate,' Chen said.
Chen said advertising in print would still grow in the next five to 10 years in second and third-tier cities where internet coverage could not satisfy local readers' needs.