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SCMP Reporter

Three huge multimedia groups, each worth at least 10 billion yuan (HK$9.4 billion), have been proposed by authorities in the latest step to consolidate China's sprawling media industry.

The State Press and Publications Administration has submitted the plan to establish the groups - in Beijing, Shanghai and Guangdong - to the central Government and Central Leading Group for Publicity and Ideological Work.

Senior officials said the three cities were picked as pilot areas because of their political and economic strength.

The groups would cover television, radio, newspapers, Web sites and publishing houses.

Film production firms would not be involved in the initial stages.

'The proposal is controversial, as these media groups would involve the merging of municipal and provincial-run media organisations in different printing and broadcasting sectors,' an official said.

'The negotiations between media organisations have so far been terribly difficult.

'If everything works out smoothly, it is possible that formal documentation will be out in three months' time.'

The official said the groups would help the media industry become competitive once China joined the World Trade Organisation.

In another proposal, television, radio and film companies would join forces to enable them to better face challenges posed by new technologies such as the Internet and to tighten government control on content.

The State Administration of Radio, Film and Television has suggested a national media conglomerate resembling Time-Warner Brothers in the United States.

According to the administration's blueprint, China Central Television, China National Radio, China Radio International, Beijing Film Production and Web sites owned by these organisations would merge to form a stronger monopoly, official sources said.

The proposal is awaiting government approval.

'The integration plan proposed by the State Administration of Radio, Film and Television is easier and faster to accomplish than the plan proposed by the State Press and Publications Administration - since their integration plan involves parties of the same system, all under the governance of the State Administration of Radio, Film and TV,' a senior official of the State Press and Publication Administration said.

'The gigantic multimedia group proposal we are working on, once approved, would take at least three years to negotiate, as that involves different conflicting power bases and competing departments within the media industry.'

Provinces and municipalities including Beijing have already merged their leading radio and cable television channels into provincial TV stations. The merger is part of the State Administration of Radio, Film and Television's plan to unite all broadcast media businesses in China into one group.

The pooling of local broadcasters into regional media conglomerates is the first step towards such a national group, regulators say.

Officials said the mergers would optimise programming and development of human resources, allowing channels to become more specialised.

But some producers say the mergers are part of the Government's drive to take back editorial control of China's more than 3,000 cable and TV stations.

Meanwhile, four more newspaper groups have been approved - on top of the existing 16 groups.

The four newcomers are lead by Hangzhou Daily,  Xinhua Daily  of Jiangsu province, Chongqing Daily  and Hubei Daily.

According to official figures, the media revenue has grown 25 per cent a year over the past three years, with advertising revenue last year reaching 80 billion yuan, an increase of 20 per cent over 1999, with the highest growth in magazine advertising.



Giant multimedia groups proposed for three cities