Phoenix Satellite Television: The Art of Broadcasting in China

Phoenix Satellite Television Holdings ("Phoenix TV") was established in 2006 as a joint venture with News Corporation's ("News Corp's") STAR TV unit and Liu Changle, a Shanghai businessman and former military journalist, as the major stakeholders. Presenting its family of channels as the Chinese TV viewers' window to the world, Phoenix TV was able to capitalize on ambiguities in China's regulatory environment and (with tacit consent from the authorities) was the only foreign TV broadcaster to target news programming at mainland Chinese viewers. In China, where significant restrictions existed on audience measurement and advertising was still a young business, ad sales were largely driven by a media outlet's image. Phoenix TV claimed an audience comprising China's highly educated, high-income, urban elite. The broadcaster's access to the highly coveted Chinese market far surpassed that of foreign media groups such as Time Warner and Viacom. Yet its share of viewing, on a national basis, trailed behind that of the state broadcaster, CCTV, and large domestic media groups, who were raising production standards and winning over audiences with dramatic programming. Phoenix TV's management was mindful of looming developments on the horizon: the convergence of telecommunications and broadcasting, the further liberalization of China's media industry, and the gradual roll-out of digital TV networks around the country, which would increase demand for content and provide new possibilities for subscription-based TV. Above all, Phoenix TV's chairman, Liu Changle, was concerned that the broadcaster was overly dependent on advertising revenue. In June 2006, China Mobile acquired a 19.9% stake in Phoenix TV from News Corp. Through a new alliance, Phoenix TV hoped to branch out into new media as a content provider for China's largest mobile operator.

• Partnerships
• Corporate strategy
• Competitive strategy