State Run Media: Protectionism Limits Domestic Competition in Satellite TV Markets

Local protectionism is the most influential non-economic and non-market factor preventing domestic satellite television broadcasters in China from expanding the regions in which they broadcast, according to a report in a late March edition of China Radio, Film & TV (in Chinese, via Xinhua). According to the magazine, which is sponsored by the State Administration of Radio, Film, and Television, local broadcast administration agencies use excuses such as inadequate frequency resources or high access fees to prevent television channels from other administrative regions from competing for viewers and causing "conflicts" in the local advertising market. The report quoted an unnamed industry insider as saying that the development of local television media lags behind that of the major national networks. As a result, the source said, the local channels fear that outside competition will result in their losing control of revenues from the local advertising market.

An employee of Zhejiang Satellite Television (ZSTV) told the magazine’s writer that local carriers have deliberately cut off the signals of the majority of satellite broadcasters. Some broadcasters had this problem 10 or more times per year, mostly in economically developed areas. According to the ZSTV employee, the only way to resolve these problems when they occur is to "look for a way to use your personal connections."

The report quoted Wang Sixin, an associate professor in the Law Department at the Communication University of China, as saying that although this type of local protectionism may constitute unfair competition, it would be difficult to use the Law Against Unfair Competition as a basis for a lawsuit. According to Wang, one reason for this is that China's satellite television market serves as a mouthpiece for local government propaganda, and as a result, satellite television "landing rights" are not governed only by market forces.

The report also said that most satellite broadcasters who the magazine contacted were not willing to discuss the issue, because "it was likely to lead to working becoming even more difficult in the future."