China's media rush   2002-11-04 11:22:44 The landscape of China's media has been changing dramatically. Over the past decade, media companies have mushroomed and revenue has soared. There's also been a trend towards cross－media mergers as a way to build conglomerates and embrace increasingly fierce competition. This is a typical newspaper stand in Beijing. At least 200 newspapers compete for readers' attention in the capital. In 1987, there were fewer than 200 newspapers around the country. But since then, one newspaper has hit the stands every three days. Beijing Times is a newcomer. Established last year, it swept away many veteran newspapers and is now the third best－selling publication in Beijing. It replaced the Beijing Morning Post but the cost has been high. "The media competition is increasingly fierce. And newspaper companies are growing ever stronger. Thus the threshold for market entry stacks high. In 1998, Beijing Morning Post rose to number three by spending 20 million yuan, but last year, we maintained our position in Beijing with a 50 million yuan input," said Wu Haiming, Beijing Times chief executive. The media is going through a similar boom elsewhere in China. Currently, the country has more than 2,000 newspapers, 8,000 periodicals, 290 radio stations and 420 TV stations. The Internet, called the fourth media, has also hooked 30 million netizens. Profits and publications have roared in the last 12 years. Just four years ago, the sector became the country's fourth biggest taxpaying sector. But there's still more room for expansion － a point not missed by international media groups. "The situation that most people work for nowadays is growth. And in many parts of the media activities across the world, there is a decline. There is a mature market that is not showing opportunities for growth. I think hence the great interest here in China," said Ian Ritchie, chief executive associated of Press Television News. According to China's pledges to the WTO, non－news foreign programs will eventually be permitted to broadcast in the country. And a number of foreign media magnates like News Corp. has already tapped in. Yu Guoming, expert on media industry, warned domestic media companies of the upcoming threat, as they are far from sophisticated. "Our media companies are too dependent on advertising revenue. For example, 85 percent of China's newspaper profits come from ads. But the international average is only 65 percent. Like Walt Disney, it makes money not only from the box office but also by－products including VCDs, books and toys. Our media should search for more diversified profit－generating channels," said Dr. Yu Guoming, professor of Journalism School of Renmin University of China. In the last few years, Chinese media have been honing their competitive edge over outside competition by merging among themselves. The latest cross－media merger involves CCTV, China Central Radio and China Radio International. It formed a national media conglomerate, which helps the group not only expands in size but also in scope. China's media industry only accounts for 0.8 percent of the country's GDP. That's less than half the world average. Industry watchers say that means there's more scope for growth and the opportunity to do big business.