Foreign Media Giants Eye China's Mobile Market

Strategic Insights -

The rapid expansion of mobile television services in China presents a tantalizing opportunity for foreign media companies, eager to tap into the lucrative Chinese market. Rupert Murdoch's News Corp, Viacom's MTV Asia, and Time Warner's Turner International are among those seeking to capitalize on this emerging trend. Turner, which operates CNN and Cartoon Network, is planning to launch a mobile gaming service with video programs in China early next year, targeting the growing base of 3G users.

Key Takeaways:

  • Turner International aims to use mobile television services as a stepping stone into China, leveraging the platform to extend its branding from traditional media to new media.
  • The company expects China to have over 100 million 3G users, with mobile television technology allowing faster video and data downloads.
  • Developing localized content and partnering directly with mobile operators, rather than using agents, are key to success in the China market.
  • Cartoon Network's success in China includes a popular mobile-phone game featuring Tom and Jerry, which has attracted millions of players.
  • Next Media is launching its first free newspaper in Taiwan, Sharp, targeting 300,000 copies to be distributed daily at Taipei Metro stations.
  • Sharp aims to capture the free-daily market and prevent competitors from eating up advertising revenue for Taiwan Apple Daily.
  • Hong Kong Economic Journal's management team is working out ways to boost revenue and increase its product portfolio, leveraging its brand name and reputation.
  • Hong Kong Economic Journal executive director Morris Ho Kwok-fai is brainstorming new ideas, including a financial daily for working women and a lifestyle spending magazine.

Statistics:

  • Turner International expects over 100 million 3G users in China.
  • Cartoon Network's popular mobile-phone game featuring Tom and Jerry has attracted millions of players.
  • Next Media has HK$1.2 billion in revenue from Taiwan in the first six months, accounting for 37% of group turnover.
  • Sharp aims to distribute 300,000 copies per day at Taipei Metro stations.
  • Hong Kong Economic Times has a daily circulation of 80,000 copies, while Hong Kong Economic Journal's circulation is 20,000-30,000 copies.
  • Three Hong Kong Economic Times executive directors sold a total of 26 million shares at HK$2.40 each, earning HK$55 million.

Sources:

  • Ringo Chan, Vice-President of Turner's Asia-Pacific Wireless Development. ["We would like to use the mobile platform to extend our branding from traditional media to new media,"]
  • A source at Next Media. ["Our internal Taiwan creative team brought us the exciting name of the paper."]
  • A source at Hong Kong Economic Journal. ["We are always brainstorming new ideas to explore more business opportunities for the Journal."]
  • A broker. ["Sharp may lose money when it starts but it should help Taiwan revenue within a year."]
  • A source at Hong Kong Economic Times. ["What is the intention of them selling the stake at that moment? Are they feeling uneasy about facing the Journal's challenge?"]