Sep 20, 2002

Advertisers win bargaining edge in Hunan TV split

HUNAN: Advertisers stand to gain from better programming and rates after China's first market to centralise TV sales operations splintered into three competing stations.

Advertisers win bargaining edge in Hunan TV split

The break-up took place early this month. Media agencies said the fragmentation was a significant development in China's ongoing drive to consolidate its TV stations. "If anything can be learned it is how to plan for a more intelligent allocation of power and resources, said Zenith China's vice-president of strategic resources, Zoe Tan.

Agencies said advertisers would gain as the three stations compete against each other for viewers. "From a negotiating perspective, this is very good news. It indicates a shift from a state-run-like model to one based on supply and demand, said Simon Woodward, MindShare China's national buying and implementation director.

Emerging from the break-up are a satellite broadcaster; a second group of three channels offering lifestyle and financial programmes; and a third station, with entertainment and sports channels.

Source:
Campaign Asia
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