Animation Push Goes into High Gear

BEIJING --- July 27th saw the establishment of China's first research and development center aimed at creating 'cartoons with Chinese characteristics'. The China National Center for Developing the Animation, Cartoon and Gaming Industry was established with the aim of developing content and development talent for the growing spate of children's channels coming online.

The Center was jointly founded by Shanghai's East China Normal University, the Culture Research Center of the Chinese Academy of Social Sciences in Beijing, and Shanghai Broadband TV with an initial investment of RMB10 million (US$1.2 million). It will be housed at East Normal University and will provide preferential tax and rent policies to companies housed in the facility that create content with 'Chinese characteristics'.

This is the latest step in a huge, government initiated push to help China's animation industry develop. The infrastructure to carry this anticipated programming explosion is already being rolled out. As a matter of SARFT policy, all provincial level broadcasters must launch children's channels by the end of next year (CMM passim).

Unlike a number of other schemes designed by the regulators to push China's TV industry development forward that tend to fizzle out once no one is looking (much to the relief of broadcasters around the country), this one seems destined to stick.

However, that would mean nearly 40 children's channels coming on line within the next two years. The largest explosion of niche channeling the world has ever seen. The US, one of the most advanced TV markets in the world, has less than five channels dedicated exclusively to children. How can China (with its admittedly much greater TV audience) expect to support so many children's channels?

No MSOs, niche channels duplicated for each market:

Multi-system operators (MSOs) in China's TV industry do not exist. This is a function of how the industry is structured, a legacy of central planning. Cable operators are modeled on the provincial, city, and township levels. i.e. each province has one, and only one cable operator, while each city and township are the same (most township operators are relegated to simply acting as transmission facilities for the city and provincial operators).

Although some of the new children's channels being launched have, and will, receive permission to be carried nationally (CMM Passim), most of the provincial children's channels will not. This means that although China will see the launch of multiple children's channels, they will not all be competing against each other nationally.

Each cable operator will carry two, maybe three children's channels at most: one or two of the nationally available channels and the one launched by their local provincial broadcaster.

This will insure that SARFT can claim to the central government that it has successfully managed the launch of more channels aimed at children than any other market in the world. They can also lay claim to insuring that China's youth don't become unduly influenced by the rash of foreign cartoons and animated programming that don't display Chinese characteristics.