Competition and Innovation: Independent Production in the Chinese TV Industry by Rui Liu Art BA /Journalism MA A thesis submitted in fulfilment of the requirements for the degree of PhD Creative Industries Faculty Queensland University of Technology 2011 Competition and Innovation: Independent Production in Chinese TV Industry Competition and Innovation: Independent Production in Chinese TV Industry Abstract Independent television production is recognised for its capacity to generate new kinds of program content, as well as deliver innovation in formats. Globally, the television industry is entering into the post-broadcasting era where audiences are fragmented and content is distributed across multiple platforms. The effects of this convergence are now being felt in China, as it both challenges old statist models and presents new opportunities for content innovation. This thesis discusses the status of independent production in China, making relevant comparisons with independent production in other countries. Independent television production has become an important element in the reform of broadcasting in China in the past decade. The first independent TV production company was registered officially in 1994. While there are now over 4000 independent companies, the term „independent‟ does not necessarily constitute autonomy. The question the thesis addresses is: what is the status and nature of independence in China? Is it an appropriate term to use to describe the changing environment, or is it a misnomer? The thesis argues that Chinese independents operate alongside the mainstream state- owned system; they are „dependent‟ on the mainstream. Therefore independent television in China is a relative term. By looking at several companies in Beijing, mainly in entertainment, TV drama and animation, the thesis shows how the sector is injecting fresh ideas into the marketplace and how it plays an important role in improving innovation in many aspects of the television industry. The thesis shows how independent television companies in China are looking to protect their property rights. It demonstrates that far from being at the cutting edge, independents are reliant on a system that has many inbuilt structural problems. The thesis outlines many of the challenges facing „independents‟. i Competition and Innovation: Independent Production in Chinese TV Industry Keywords Television, TV industry, TV market, TV independent production, TV drama, TV entertainment, TV animation, Innovation, Competition, China ii Competition and Innovation: Independent Production in Chinese TV Industry Table of contents Abstract.................................................................................................................. i Keywords .............................................................................................................. ii Table of contents ................................................................................................. iii List of figures .................................................................................................... viii List of tables ........................................................................................................ ix Abbreviations ...................................................................................................... xi Authorship .......................................................................................................... xii Acknowledgements ........................................................................................... xiii Chapter 1 .............................................................................................................. 1 Introduction .......................................................................................................... 1 1.1 The Development of the Television Industry ......................................................... 2 1.1.1 The Television Industry Globally .................................................................... 2 1.1.2 The Television Industry in China .................................................................... 4 1.2 Research Subjects ................................................................................................... 6 1.2.1 Research Questions ......................................................................................... 6 1.2.2 Definition of Independent Television Production ........................................... 8 1.2.3 Research Approach ........................................................................................ 10 1.2.4 Research Significance ................................................................................... 15 1.3 Outlines of Chapters ............................................................................................. 16 Chapter 2 ............................................................................................................ 19 Literature Review and Theoretical Concepts ..................................................... 19 2.1 Introduction .......................................................................................................... 19 2.2 Television Studies in Creative Industries ............................................................. 19 2.3 The Concepts of the Television Industry and Television Market ........................ 21 2.3.1 Market Structure in the Television Industry .................................................. 22 2.3.2 Market Value Chain in the Television Industry ............................................ 26 2.4 Competition and Diversity in the Television Market ........................................... 29 2.4.1 Dimension of Competition and Diversity...................................................... 30 2.4.2 Government Intervention............................................................................... 31 2.5 Creativity and Risk for the Independent Television Production Companies ....... 33 2.5.1 Risks for the Independent Television Production Companies ...................... 34 iii Competition and Innovation: Independent Production in Chinese TV Industry 2.5.2 Creativity from the Independent Television Production Companies ............ 36 2.6 Conclusion ........................................................................................................... 38 Chapter 3 ............................................................................................................ 40 Innovation in Television with Independent Production and Research Design .. 40 3.1 Introduction .......................................................................................................... 40 3.2 Innovation in Television Globally ....................................................................... 40 3.2.1 Innovation in Television in the US and the UK ............................................ 41 3.2.2 New Definition for Innovation in Asia ......................................................... 44 3.3 The Theoretical Framework of Innovation in Television .................................... 45 3.3.1 Innovation Concepts in Economics and Television ...................................... 46 3.3.2 Innovation in Television Content.................................................................. 47 3.3.3 The Market Structure Innovation in Television ............................................ 49 3.4 Research Design Structure ................................................................................... 51 3.4.1 Regulatory Structure ..................................................................................... 52 3.4.2 Market Practice Dimensions ......................................................................... 56 3.5 Conclusion ........................................................................................................... 58 Chapter 4 ............................................................................................................ 60 From Monopoly to Competition: the Television Industry in China .................. 60 4.1 Introduction .......................................................................................................... 60 4.2 Background Knowledge: the Chinese Teleivsion Industry Structure and Reform .................................................................................................................................... 60 4.2 Market Innovation in the Chinese TV Industry ................................................... 69 4.3 Current Situation of the TV Program Market in China ....................................... 79 4.3.1 The Television Production by Genre in China ............................................. 81 4.3.2 The Television Production by Region in China ............................................ 83 4.4 The Development of TV Independent Production in China ................................ 85 4.4.1 Historical Development of the Regulatory Environment in China ............... 85 4.4.2 Current Situation of Independent Production in China................................. 90 4.4.3 From the Edge to the Core: The New Era for Independent Companies in China ...................................................................................................................... 91 4.5 Conclusion ........................................................................................................... 94 Chapter 5 ...........................................................................................................