Perspective... How will the mainland media spend its billions?

It has drawn up an ambitious plan, which will see China pour vast amounts of cash into media campaigns designed to get across its side of the story. As with all numbers associated with China, the figure is staggering. The Ministry of Finance has set aside Rmb 45 billion (US$6.7 billion) for the purpose of refining China’s image globally.

Media owners, agencies, and analysts have been scrambling for information - not least because the sum involved appears to be more than any other country has ever spent on this type of expansion.

The questions of course are many,the details few.

All we know for certain is that there is talk of launching a TV station that’s built on the Al-Jazeera model. There are also hints that existing Chinese publications will be published in English and tailored for an overseas readership.

The three state media giants - China Central Television, Xinhua News Agency and The People’s Daily - are each tipped get a few million each if they come up with "worthwhile projects".

The question is: how will this money be spent? The Al-Jazeera concept is interesting, if Beijing does indeed intend to replicate that model.The network was initially set up by the Qatari Government,but its management quickly realised that impartial reporting would be key to building the station’s reputation and to establishing Al-Jazeera as a reputable news source. In recent years, the network has managed to position itself as a viable ‘alternative’ to BBC and CNN.

Whichever route the mainland takes, what it will need is international expertise,if it is to operate a truly independent-minded news organisation or create content that appeals to a global audience. The fact is that the majority of China’s media, while growing in sophistication, continue to be highly selective in their coverage. Hopes that the Games would usher in a new era of media freedom were not realised. Censorship and restrictions on media organisations remain in place - just look at China’s handling of Obama’s inauguration speech.

The likelihood of China acquiring assets to build its global media empire can’t be ruled out either. International and regional media owners - struggling against a softening global advertising market - may well be ripe for picking. It may be money well spent, but having relied on running its own media so far,Beijing would be especially careful before taking such a step.

China isn’t the only media market bracing itself for change. The proposed break-up of Korean Broadcast Advertising Corporation (Kobaco), which controls all dealings between broadcasters and advertiser, by the end of this year,could potentially open up the Korean TV market.

Kobaco sets the ad rates and times, and collects the revenue. The trouble is that advertisers have little control over when their ads air, and TV stations don’t see much of the ad revenue and so few are incentivised to invest in new programming and formats. The organisation is something of a relic from Korea’s authoritarian past. And for years there has been talk of plans to change Kobaco’s monopoly on broadcast media ad sales.

But this time feels different, partly because it’s the market that’s determining the future of Kobaco. As media moves towards digital TV, Kobaco is, inevitably, becoming less important. TV adspend is tumbling recently forcing the Government body - in an unprecedented move - to offload discounted TV inventory (particularly that of KBS) to advertisers.

Kobaco’s monopoly coming to an end may be just the jab the Korean television sector needs to revive its flagging fortunes.

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