Min HANG Ph.D in Business and Economics. Stage Report of the Global Media Concentration Project: CHINA MAINLAND

Transcription

1 Stage Report of the Global Media Concentration Project: CHINA MAINLAND Min HANG Ph.D in Business and Economics Associate Professor of Media Management and Director of Business Journalism Program at Tsinghua University, China 1

2 Included in this stage report are: Preliminary results from China s Television sector Newspaper sector Radio sector Telecom (wireless) Telecom (wireline) Internet service provides (ISPs) 1. Television Sector 2

3 Data collection Measurement We use audience rating to measure the market share of television companies, instead of revenue. Data source We use data of audience rating from a leading media consulting company: China CSM Media Research Unit of study Channels instead of TV company Time frame We cover year 2001, 2002, 2003, 2004, 2005, and 2006, 2007 Calculation We calculate the top 15 leading channels, with the rest categorized as others China Television Market Concentration Index 3

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5 Preliminary Findings Decreasing level of concentration CR HHI Noam Index CR HHI Noam Index However, if we use TV company, not channel, as the unit of analysis, the result will be very different. 5

6 2. Newspaper Sector Data collection Measurement The market share is calculated by newspaper circulation number. We only include newspapers circulated national wide. Regional and professional newspapers are excluded. Data source Statistics are issued by the State Administration of Press and Publication. Time frame We cover year 1992, 1996, 2000, 2004, and 2007 Calculation We calculate the top 9 newspaper companies, with the rest categorized as others 6

7 Newspaper Titles Reference News 35.2% 31.5% 30.9% 29.3% 30.4% People s Daily 23.3% 23.5% 21.9% 20.8% 19.8% China Youth Newspaper 10.1% 8.5% 7.0% 4.8% 3.2% Worker s Newspaper 12.6% 8.8% 6.2% 3.4% 3.0% Economy Daily 5.0% 5.6% 5.1% 4.4% China PLA Daily 4.8% 5.2% 5.3% 5.2% Guangming Daily 3.4% 3.5% 3.5% 2.7% 2.7% China Children Newspaper 1.5% 1.4% 1.8% 1.0% 5.7% Global Times 4.7% Others 4.1% 17.6% 17.8% 23% 30.8% Total Annual Circulation (Millions) Number of State-level Comprehensive Newspaper C HHI Noam Index Preliminary Findings Decreasing level of concentration C HHI Noam Index Question: Define the market of competition? Region/types of newspaper 7

8 3.Telecom sector (wireline & wireless) Measurement We measure the market share according to revenue from wireline and wireless: 1 revenue of wireline =The monthly rental+ charge of local calls+charge of domestic long-distance calls +charge of International long-distance calls +charge of Hong Kong, Macao &Taiwan s calls 2 revenue of wireless=the monthly rental+ charge of local calls+charge of domestic long-distance calls +charge of International long-distance calls +charge of Hong Kong, Macao &Taiwan s calls 8

9 Measurement 3 Some of telecom companies hold a Personal Handy-Phone System (PHS)business ( 小灵通 ). Although PHS is mobile,it uses the wireline networks, and the government do not issue wireless licences to telecom companies that have PHS business. So,we include income of PHS business in the wireline category. Data sources - listed company s annual financial reports quarterly financial reports; - Yearbook of China's communication; - Yearbook of China's information; 9

10 Time frame There was state monopoly from year More companies emerged after Increasing competition can be seen since We cover year and Wireless Year Company China Mobile China Telecom China Unicom China Netcom China Railcom China Satcom China Jitongcom C HHI Noam Numberof Telecom Companys Note:In China Telecom(wireless)Market,there are only China Mobile China Unicom China Satcom three players(2000&2004);there are only China Mobile China Unicom China Telecom three players(2008) 10

11 Year Company Wireline China Mobile China Telecom China Unicom China Netcom China Railcom China Satcom China Jitongcom C HHI Noam Numberof Telecom Companys Note:In China Telecom(wireline)Market,there are only China Telecom China Netcom China Jitongcom three players(2000);there are only China Telecom China Netcom China Railcom three players(2004);there are only China Mobile China Unicom China Telecom three players(2008) Preliminary Findings The wireline concentration is decreasing C HHI Noam No. of Companies The trend of wireless concentration level is still unclear C HHI Noam No. of Companies

12 4 Radio Stations and Networks Data collection Data measurement We measure the market share according to the advertising revenue. Data source Information of the State Administration of Radio,Film and Television; China Radio, Film and Television Development Report; Yearbook of China Radio and Television Time frame We cover year Calculation We calculate the top 10 radio companies, with the rest categorized as others 12

13 China Radio Market Concentration Index Preliminary Findings Low concentration (1996,1999,2004,2008) C HHI Noam No. of players Yet, it is important to define the market 13

14 5 ISP Data collection Data measurement We measure the market share according to the internet income of ISPs. Data source Listed company s annual financial reports Yearbook of China s Communication Yearbook of China s information Time frame We cover year 2004 and Calculation We calculate the 3 ISPs 14

15 Preliminary Findings High concentration level C HHI Noam No. of ISPs 6 3 Number of market players was reduced to 3 in 2008, because of industry restructing. 15

16 Discussion How to define the market? How to measure the market share? Data availability? Thank you! 16

17 Telecom company profile China Mobile : since its establishment,its business is only to manage the mobile communications services in China. In 2008, Ministry of Industry and Information Technology of The People's Republic of China adjusts the telecommunications industry,and it becomes one of full-service-type ISPs. its business includes mobile communications, fixed telephony, broadband access, 3G service, etc. 17

18 China Telecom one of the earliest established telecom companies for fixed telephony, mobile communications and other related telecom services under a monopoly. In the late 90s of the last century,it was stripped of its mobile communications business,china Mobile was established. Into the 21st century, its business was mainly fixed-line telephone, broadband access, PHS and etc. into 2008,the government adjusts the telecom industry, It bought China Unicom's CDMA, so it can manage mobile communications business, becomes one of full-service-type ISPs China Unicom Operates two mobile communication networks: GSM and CDMA, the main business is operating mobile communication, but it also involves a small number of urban telephone long-distance business, the small proportion of their income can be ignored. Adjusting telecom industry in 2008, China Unicom&China Netcom merged into new China Unicom,and sold CDMA to China Telecom,and becomes one of full-service-type ISPs 18

19 China Netcom, was established in 1999, Businesses:Internet access, fixed-line telephone, IP phones, PHS and other businesses M & A Jitong Netcom. Acquired by China Unicom in 2008 China Railway, was established in December 2000, Businesses :fixed-line telephone, Internet, data communications, IP telephony etc. Merged by China Mobile in

20 China Satcom was established in 2000, Businesses:satellite mobile communications services, Internet services, VAST communications services, satellite-based transmission technology for voice, data, etc. In 2008 based telecom services into China Telecom, China Satcom into the China Aerospace Science and Technology Corporation. China Jitong, was established in 1994, construction, operation and management of national public economic information communication network (Golden Bridge Project), or CHINAGBN, and competes with China Telecom CHINANET. in 2003 merged into China Netcom 20

21 Main Radio Station profile China National Radio: China national radio station is one of the most influential mass media, as a national radio station, which in a radio marketizationroads and segments on the channel has done some useful attempts Radio Peking Into the 21st century, the largest radio advertising revenue in 2008, its advertising income: 371 million RMB 200 million RMB more than Radio Guangdong,which is second on the income rankings 21

22 Radio Guangdong: close to Hong Kong, Macao, a prosperous economy, there is reform and opening-up policy support, revision forceful, channel innovation strong, attracting a large audience, advertising income in 2008 in second place Other radio stations, The remaining top ten radio stations are most of the more developed coastal regions'radio stations, radio advertising income is still closely related to the local economic development level 22