Crackdown on Foreign Satellite Broadcasters Sets Off Another Round of Media Hype

BEIJING --- In scenes reminiscent of News Corp’s first attempt to tell the world that it had cracked China through its Phoenix TV venture only to be rudely reminded they hadn’t by the Chinese authorities, leaks to the western press and follow-up speculation on an on-going crackdown on satellite dishes have now succeeded in denting the broadcaster’s chances of carrying through its listing plans for later in the year. 

CMM has been closely monitoring the situation regarding foreign satellite broadcasters since early April, when reliable sources started hinting at a possible link between a long planned crackdown on illegal satellite dishes and official displeasure at the high penetration rates being claimed by foreign broadcasters such as Phoenix TV which are using those satellites. 

While the timing of press releases prompts many questions, the official crackdown on illegal satellite dishes should come as no surprise to China watchers. Closer observation of the campaign notice issued by SARFT and the Ministry of Public Security reveals absolutely nothing new, simply a campaign to correct inefficiencies which have crept in since the rules were first enacted over five years ago. 

In fact, nearly all the actual progress made by Phoenix TV and ESPN, etc. has resulted from such "inefficiencies", including the tacit approval for a Guangdong provincial level suggestion that Phoenix TV be allowed re-transmission on cable systems following the handback of Hongkong. 

Although "loophole" is not a word to be heard in company press releases, it is a more accurate description of how foreign channel brands such as Channel V, MTV, Discovery and ESPN have made their creeping penetration into China. (see also 'Official Regulations and Punishments Relating to Illegal Broadcast of Foreign Satellite Programming') As CMM has been reminding confused clients since we broke the story of the nod for Phoenix landing rights in Guangdong in 1997, everything that has been given since then can be taken away at any time. Now is simply that time. 

And what a peach of a time it is! The next six months had all the ingredients required for a full and comprehensive cleansing of unhealthy tendencies from the media, even before Nato bombed the Chinese Embassy in Belgrade. 

Starting with the tense run-up to the anniversary of June 4th massacre, China will quickly move on to the tense run-up to crucial government meetings on the reform process in September, before the tense run-up to the 50th Celebrations on October 1st. 

Before disparate voices have time to clear their throats, there will be tense issues related to security and public calm over the New Year period with all its potential for computer or superstitious disturbances. Suddenly, there we are (we hope) in the Spring of the Year 2000. 

As for Phoenix TV, the main reason it has been receiving the brunt of international press attention has less to do with News Corp.’s involvement than it has to do with the fact that Phoenix TV has been the most successful foreign player when it comes to operating in "regulatory greyland". 

Of course, the real skill is maintaining the status quo of the grey areas, something which Phoenix TV has achieved with some success thanks to its recruitment policy. This has included the appointment of senior Chinese managers who came to prominence inside the state system exactly because they could creatively interpret ways to mould policies and regulations without upsetting the balance. 

In fact, one of the ways things are accomplished in China is by diverting of ficial attention from the real issues. The current campaign makes it clear that this game of charades has now come to an end. Indeed, we may one day look back on the late 1990’s as the golden age of foreign satellite TV in China, which will come as little consolation to the players. 

That is not to say that Phoenix TV and other fledgling services will disappear, but it does mean that next time round they will be playing by new rules. It is CMM’s prediction that those new rules will be just as loaded as the last ones. 

NOTE: The timing of the release of international press reports on the crackdown have got conspiracy theorists chatting again and this CMM editor is just one who finds the release of information on the very day that Phoenix was to announce its listing plans an unlikely co-incidence given the actual news was weeks old. Got an angle on it? Write to [email protected]