According to Dr Anita Leung, CEO of QJY, "SARFT hosted a conference in February to announce new open-door policies to encourage foreign participation in co-productions of TV drama. These co-produced TV drama will enjoy the same prime-time broadcast rights as local productions on national TV networks. Under this open policy and pursuant to the agreements, our Group can also invest directly in such co-productions. No consideration is involved in the procurement of such priority rights."
Dr. Leung further explained, "Advertising expenditure on TV dramas in the PRC exceeded RMB100 billion in 2005. The TV networks across the country require at least 5,000 episodes/ hours of prime-time TV drama series. Our Group has taken the lead to initiate discussions with provincial TV networks in anticipation of market liberalisation. As a result, we can conclude the aforesaid co-operation agreements within such a short time."
Dr. Leung continued, "Having engaged the partnership of the two best production houses in the Eastern region, the Group is confident of achieving a breakthrough in market share. We will invest about RMB100 million to 150million in the procurement from and co-production with these two companies of prime-time TV drama."
The Group recorded net profit after tax of about HK$66 million in 2005, based on investments in 126 episodes of TV drama. The target set for 2006 is 180 episodes and with the two agreements in place, the Group expects to increase its market share of the 5,000 episodes of total prime-time drama airtime from about 3% in 2006 to 10% in 2007.
East Shanghai has produced a number of popular TV drama series including 《亮劍》、《武林傳奇》, 《長恨歌》 and 《白求恩》; and Jiangsu TV 《青城之戀》, 《不想回家》, 《非常道》 and 《海的誓言》. They are well known for producing top quality TV drama even with a controlled budget. 《亮劍》is a classical example of a small production making a big hit in the PRC.
About Qin Jia Yuan
Qin Jia Yuan Media Services Company Limited (HKEx: 2366) is a China-focused one-stop shop for TV media services, providing integrated programme, distribution, advertising and marketing and public relations services to production houses, advertising agencies and advertisers. The Group was listed on the main board of the Stock Exchange of Hong Kong on June 30, 2004 following a successful initial public offering. Its strategic shareholders include Aegis Group plc, a public company listed on the London Stock Exchange and one of the world's five largest media groups.