Dr Anita Leung Fung Yee, CEO of QJY said, "Chongqing Satellite TV is a leading TV channel in the Mainland with nationwide coverage and is ranks the top five among satellite TV channels across the country. It is a valuable opportunity for us to establish a co-operative relationship with them. Targeting the young audience, we will leverage on our competitive advantages to produce popular TV programmes. Our revenues will not only come from TV advertising, but also from other interactive communication carriers. To kick off, we plan to organize a national sports competition for university students this year. The China Sports Daily has committed the participation of its Sports Stars Page, from which QJY has acquired exclusive advertising rights, as the co-organizer of the competition. QJY's advertising revenues is expected to increase as synergies are derived from the collaboration. Following the sports competition, a national youth singing competition, a dance competition and the like will be organized. Special TV programmes will be planned and invested by both parties, who will also enjoy profit sharings from the programmes."
Dr Liu Shunfa, Vice President (Deputy Station Head) of Chongqing Broadcasting Group (Head Station), attended the signing ceremony with a delegation from the TV channel. He expressed his full confidence in the co-operation with QJY. Dr Liu said that QJY has made remarkable achievements in its collaboration with major TV stations in China. Chongqing TV station needs to bring in creative and unique ideas in programme planning and cultural and entertainment programme production, with a view to capturing the young audience. Chongqing TV is confident that these programmes, capitalizing on the channel's national coverage and high viewing rate, will become name-brand TV programmes for Chongqing TV station. In 2006, China's TV advertising expenditures derived from beverages and sports products, which mainly target the young audience, amounted to RMB18.66 billion and RMB3.09 billion respectively.
Dr Liu continued that as TV media industry is booming in China, there is a thirst for talent, in particular for artist training, which not only helps reduce production cost but also creates an important talent asset to sustain future income streams. QJY and Chongqing TV plan to jointly up a leading artist agency business network to serve the production requirements of Chongqing Satellite TV. They plan to acquire artist agencies and to establish an artist training and management center - QJY Chongqing Performing Arts Center. Through the high-impact promotion of Chongqing Satellite TV, the center will recruit youth people to join the artist training programme. With QJY's projected shooting of around 600 episodes of TV dramas in 2007 and Chongqing Satellite TV's existing programme planning, there will certainly be sufficient performing opportunities for the trainees recruited. The hero and heroine recruitment campaign for the TV drama versions of Wisely scientific novel series, to which QJY owns exclusive adaptation rights, will be launched as a major project under QJY Chongqing Performing Arts Center. It is expected that the recruitment campaign to be announced after the spring festival will create high noise level across the country.
Dr Leung added: "Exploring, recruiting and training talents are essential to the development of the TV industry. At present, the average production cost for a single episode of TV drama is about RMB500,000, but the post-tax payment for a Mainland top actor/actress can be up to RMB100,000 to RMB150,000 per episode, accounting for a large proportion of the production cost. Production houses are forced to cut the budget in other aspects in order to pay for the stars, at the expense of production quality. On the other hand, agencies with management contracts with popular artists can make a substantial profit. Artist training is therefore crucial to the long-term success of a TV business."
QJY and Chongqing TV both emphasized the need for alliance establishment in order to sustain a successful TV business in the Mainland.
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.