SinoMedia, a private media advertising firm which offers advertising airtime on China Central Television, plans to invest in new media channels such as websites and mobile video over the upcoming years.
New media currently accounts for a tiny share of the firm's revenues, 90 per cent of which comes from producing advertising content and selling advertising slots on CCTV, according to its annual report last year.
'We will consider both acquiring operating companies and investing to start our own,' said chairman Chen Xin. Since the end of last year, SinoMedia had invested nearly 100 million yuan (HK$122 million) in its new media business and expected revenues from the business to surge 50 per cent next year, Chen said.
SinoMedia, which mainly sells advertising slots for seven CCTV channels - including its news and special report programmes - invested in two mobile video and mobile television firms this year. Lotour.com, a joint-venture tourism service website started last year, could break even next year, Chen said.
He said the impact of restrictive regulations on satellite television entertainment shows - issued in October by the broadcasting regulator - would not directly affect SinoMedia. However, people working in the industry would need some time to adapt to the new regulations, Chen said.
He supports the regulations limiting the number, frequency and duration of entertainment shows, and a mainland-wide ban on advertising during television dramas, saying they would improve viewers' enjoyment of television shows.