The Great Corporate Kow-Tow: Time Warner's Sympathetic Approach to China

Strategic Insights -

Gerald Levin's company, Time Warner, organized the Global Forum in Shanghai, where corporate leaders such as Jack Welch, Jacques Nasser, and Michael Dell discussed their ambitions in China. Levin, a close friend of Chinese President Jiang Zemin, has secured his company's position in the rapidly growing Chinese media market. Levin's connections have already yielded benefits, including a glowing introduction on state-controlled China Central Television and smooth passage for Time Warner's private jets through sensitive military areas. However, western media moguls have historically struggled to navigate China's state-owned media landscape, where personal relationships and favorable treatment are essential for success.

Key Takeaways:

  • Gerald Levin's Time Warner organized the Global Forum, bringing together corporate leaders to discuss their ambitions in China.
  • Levin's close relationship with Chinese President Jiang Zemin has secured Time Warner's position in the Chinese media market.
  • Levin's connections have yielded benefits, including a glowing introduction on China Central Television and smooth passage for Time Warner's private jets.
  • Media moguls like Rupert Murdoch and Sumner Redstone have also sought to build connections with Chinese officials to secure success in the market.
  • Levin's approach is expected to yield significant advantages for Time Warner in the Chinese market.
  • The Chinese media market is characterized by state ownership, which makes personal relationships essential for success.
  • MTV, a Viacom subsidiary, has achieved success in China through collaborating with officials.
  • Time Warner's current interest in China is negligible compared to its international peers.

Statistics:

  • More than one television is present in every urban home in China, making it the world's fastest-growing and biggest potential media market.
  • Phoenix, a part-owned channel by Rupert Murdoch, is the most successful offshore broadcaster in China.
  • MTV has reached 43m homes in China through collaborating with officials.

Sources:

[1] "The Financial Times" (1999)

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