HONG KONG, Sept. 15 /PRNewswire-Asia/ -- Qin Jia Yuan Media Services Company Limited (Stock Code: 2366, hereinafter referred to as the Group or QJY) announces that it will invest RMB 50 million in the planning and production of 500-hour non-script programs in the second half of 2009 to 2010, including but not limited to situational dramas, column dramas, interviews, talk shows, variety shows and documentaries. The intended investment is in line with the encouragement of marketization of non-script program by the authorities of the State Administration of Radio, Film and Television of the PRC (SARFT). In the past year, in its meeting with TV stations under SARFT and TV production service-providers, SARFT clearly indicated that TV stations in Mainland China should have the responsibility of providing a wider range of TV programs other than large-scale TV dramas to the mass TV audiences. In the symposium on the reform of cultural system of China in August 2009, leaders from the authorities again explicitly encouraged the TV stations in Mainland China to spend not less than 30% of their program purchase budget for 2010 in the "outsourcing" of non-script TV programs, with the aim of introducing more new forces to the market to produce a variety of TV programs. "Outsourcing" means that TV stations should purchase TV programs from non state-owned TV production units, instead of investing and producing TV programs by themselves. The non state-owned TV program production units in Mainland China can also co-operate with their foreign counterparts in planning, investing in and producing TV programs for sales to TV stations. This message undoubtedly indicates the best sales channel for finished products of non state-owned TV production units will effectively bring enormous business opportunities to professional TV program production units.
In her analysis of the situation, Dr. Anita Leung Fung Yee, the Chief Executive Officer of QJY said "The total TV program broadcast in China was 30 million episodes/hours in 2008, in which non-script TV programs accounted for 58%, i.e. 17.40 million hours, represented a 17% increase comparing to previous year. 30% of those non-script TV programs are "outsourced" programs, i.e. over 5 million hours of non-script TV program distribution rights were purchased by TV stations in Mainland China. This figure is extremely encouraging. QJY accurately predicted this new trend in the TV program production market at the beginning of 2008, and reduced significantly its investments in large-scale TV series and switched to the deployment and planning of non-script TV programs with lower investment and quicker return. It is expected that QJY will be among the first providers in supplying the TV stations in Mainland China with various non-script TV programs, and secure its position in the market at the earliest time possible."
Dr Anita Leung added that the 500-hour non-script TV programs planned by QJY will include several situational dramas and column dramas with 60 episodes per drama, and for the situational drama which is well received domestically, it can be extended to 1,000 episodes and become a long-lived program. These situational dramas and column dramas will not rely on the highly-paid famous artists, but is the quality of the script and concept that counts. The first situational drama of QJY will be broadcast across China as early as December 2009, and its investment can be recovered in the first half of 2010. It is expected that generally the gross profit margin can reach 25% or above. QJY will only commence to acquire one to two finished products of large-scale TV series from next year onwards, in order to avert the risks arising from the long payoff period.
In the current challenging environment, quality TV program production can be very lucrative. Newly-produced TV programs only meet 18% of the TV programs demanded across China for the whole year, which reflects 82% of TV program demand needs to be filled by the rebroadcasting quality TV programs. All the high quality TV program content libraries will be invaluable. QJY has a content library of as 5,000 hours with proven market value, and the distribution revenue generated from QJY's content library will be not less than RMB 20 million a year.
For enquiries, please contact:
Canny Liu
Senior Account Executive
Trimaran Corporate Communications
Tel: +852-3101-4684
Katherine Chan
Account Executive
Trimaran Corporate Communications
Tel: +852-3101-4683
