China is the world’s largest TV market by audience and fast becoming one of the world’s most prodigious producers of TV content. Total annual production of TV programs reached 2.6million hours in 2006, an annual increase of 2.51%, according to the State Administration of Radio, Film and Television Development and Research Center. Total airtime reached 13.6million hours, up 4.62% on 2005. TV penetration reached 96% of the population by the end of 2006, with around 139million households connected to the national cable grid through 3million kilometers of cable, and 12million households could receive digital signals. The total number of cable TV users jumped to 143million households by the end of the first half of 2007, an increase of four million households over the start of the year. However, the industry remains largely shielded from the outside world due to government restrictions on foreign content imports, as well as the activities with which international media groups can be involved. The roll-out of pay-TV and official IPTV services has also fallen well short of expectations. The content available on Chinese TV is heavily influenced by government policy. Reality TV shows were dealt a severe blow by the central government authorities after dominating TV ratings in 2005 and 2006. SARFT issued a notice sweeping them off primetime schedules on September 20. The notice introduced tough new restrictions on format, scheduling and content, and demanded all broadcasters receive approval from SARFT before producing talent shows. The restrictions on TV talent shows has opened up new space in domestic primetime schedules, with some predicting a return to more traditional cultural fare such as variety shows, evening galas and televised concerts. Others warn that the loss of talent TV, a commercial mainstay of free TV worldwide, and the inexorable shift of premium film and sports content to niche pay-TV channels, will spell the end of the entertainment line for traditional broadcasters. Until the next creative breakthrough, this valuable space will be filled with more TV dramas. TV dramas continued to dominate the small screen in China in 2007. According to CVSC-SOFRES Media (CSM) data released on December 7, TV dramas accounted for 24.1% of the content broadcast on all TV channels and 33.9% of audience ratings. This follows the trend established last year, when TV dramas accounted for 22.9% of broadcasts and 32.3% of audience ratings. China has 2,070 accredited TV production companies involved in the production of TV dramas, but quality has declined as production has increased sharply to the point of oversupply. Historical dramas account for the bulk of TV drama production, after the relative popularity of this genre in 2006. The four great classics of Chinese literature are the subjects of ongoing TV drama productions, such as the RMB100million (US$13.7million), 55-episode version of Journey to the West. Producers are also mining the endless supply of ‘free of copyright’ myths and legends for fresh material. Preferential government policies to promote the domestic animation industry helped this sector attain the most rapid growth in 2007, with output growing by more than 92% per annum to 82,300 minutes of new content. China has four dedicated animation channels and 33 children’s channels, broadcasting around 8,000 minutes of domestic animation content every day. However, the ever-increasing amounts of animation are largely funded through State grants and the programs produced do not always make it on air. TV news and current affairs programs remained a prime time television mainstay in 2007. On average, Chinese audiences watched 22.8 minutes of news programs per day, a 12.95% share of daily viewing time, according to the CSM Media Research/STVF China TV News Report 2007-2008. General news accounted for 58% of news viewing with entertainment news reaching a 10% share. The 2006 World Cup, the upcoming Beijing Olympics and other international sports events also resulted in an increase in sports news. There were some new trends in factual programs in 2007, such as the growth of new programs on valuing antiques and other collectables such as jade. Programs featuring amateur news reports shot by ordinary bystanders on hand-held video cameras also became popular. One program called DV Observation paid people RMB100 (US$13) per minute of video broadcast, with rates rising to RMB120-180 (US$16-24) for better quality reports. These programs are now shown in most major cities. Foreign content providers made inroads into Chinese television, despite the ongoing government restrictions on the broadcast of foreign films, TV dramas and animations in commercially attractive primetime slots. Granada International signed one of the largest foreign format deals of the year when it licensed the popular Saturday Night Takeaway format to Hunan TV. The station broadcast the format to an Asian audience for the first time in January 2008, after using the name Super 2008: Friday Night Takeaway and revising it to cater for the local audience. “Making local versions of several of our wide range of entertainment shows is part of our strategy to develop our presence in China. We are very pleased to be working with Hunan again on this ground-breaking format deal,” said James Ross, regional director at Granada International. Chinese television is now gearing up to broadcast the biggest celebration of its national and regional cultures ever during the 2008 Beijing Olympic Games. TV drama, documentary and animation producers are being challenged to produce programs on Chinese landmarks and the Olympics to mark the Games. It will be a seminal year for the content production sector for all genres – from news and current affairs to entertainment – as producers prepare to broadcast spectacles of unprecedented scale and scope, as well as every minute of the Games.