4 December 2014 World China Limits Online TV Imports Amongthemanylimitations on foreign media content imports, China is also imposing a limit on the number of television programs from foreign sources available online. The new requirement came from China’s regulatory agency, the State Administration of Press, Publication, Radio, Film and Television. Since last April, foreign series have been required to get approval before being shown online. Now regulations require that streamed foreign TV shows, which are very popular, be reduced from the current 50 percent to no more than 30 percent of total TV content on Chinese video-streaming sites. Reportedly, shows such as The Big Bang Theory drew more than 120 million views a month on the Sohu.com site before the Chinese regulators pulled the show (and three others) off the Internet last April. According to a report in The Wall Street Journal, the limit is measured according to the number of titles, not the number of episodes per title. Nevertheless, the limit is reducing revenues from digital rights, which today reach some $683 million a year. U.S. Cable TVNets Now Live Online Later this year, 22 of Viacom’s cable channels, including MTV, Nickelodeon and Comedy Central, will be streamed on the Sony online network subscription-based service. Viacom is the first of many other TV channel operators — such as Discovery and Starz — that are expected to join the Sony online network. Currently, Sony’s online network reaches 75 million households in the U.S. with its PlayStation and webconnected TV sets. Viacom’s offering consists of live and ondemand services. The monthly subscription fee for the Sony service is expected to range from $15 to $30. This compares to an average $90 per month that households pay for cable or satellite services. www.grbtv.com•sales@grbtv.com STAND C33 11.12.2014 JUNIOR PAGE_ 7.284”x 9.055” VIDEO AGE (for Asian Television Forum) 26x30 3x60 10x30 7x60 The Best in Factual Entertainment While Hollywood studios collect 50 cents for each U.S. box office dollar, overseas the financial arrangements with movie theaters are less favorable. Therefore, high foreign revenues don’t compensate for lower U.S. box office receipts. Reportedly, last summer in the U.S. and Canada, BO sales were down by 15 percent compared to 2013. In China, where American movies are very popular, Hollywood’s take is 25 or 27 cents for each box office dollar. In addition, this low BO share is not compensated for by ancillary rights since in China DVDs are not bought legally and TV distribution sales are minimal while digital sales have been reduced (see adjacent story). Therefore in China, U.S. studios can count mostly on the BO cut. Fortunately, marketing costs tend to be lower overseas, because in countries like China, government restrictions permit only limited studio-sponsored advertising. Conversely, according toThe Wall Street Journal, in the U.S., with its robust ancillary market, $1 at the BO for the studios translates into $1.75 of total revenue over a decade. Similarly, over a decade Russia generates about 65 cents per BO dollar, South Korea brings in 55 cents, Japan 83 cents and the U.K. $1.30. High Foreign Box Office $$ Don’t Compensate For Low U.S. BO $$
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