Phoenix Satellite Television says it is setting up a joint venture with Beijing People's Broadcasting Station, a move that will give the Hong Kong-listed broadcaster its first slice of the mainland radio advertising market.
At the sidelines of the Beijing-Hong Kong Economic Co-operation Symposium yesterday, the companies said they would jointly invest 30 million yuan to launch Beijing Tongbu Advertising Broadcasting. The new firm will start selling advertising airtime for radio stations - excluding Beijing People's Broadcasting Station - by the end of the year. Potential markets include Shandong, Shanxi, Sichuan and Yunnan.
'It is just a start,' said Wang Qiu, Beijing Tongbu chairperson and vice-director at Beijing People's Broadcasting. 'The business has much room to grow with sharing of resources and expertise between us and Phoenix TV.'
The joint venture is 55 per cent owned by Beijing People's Broadcasting and the remainder by Phoenix TV. The partners expect to break even within three years. According to Phoenix TV, the venture will package its programming - such as talk shows - with localised information such as news and weather and sell to local radio stations in return for advertising spots.
The venture will require government approval before it can start business, however.
Under current regulations, foreign parties are allowed to take up to 50 per cent of television advertising companies while Hong Kong firms can set up wholly owned subsidiaries on the mainland.
