Media Industry Development

Media means "mass media". Broadly speaking, mass media includes newspapers, magazines, television, radio, movies, books, audiovisual products, and the rapidly rising Internet. According to the statistics and projections of various data collected as of March 2012, the total output value of China's media industry in 2011 amounted to 637.9 billion yuan, an increase of 15.2% over the previous year. In terms of the market structure of the various sectors of the media industry, in 2011, newspapers and television accounted for 31% of the overall market of the media industry, and the scale of the Internet business amounted to 42% of the overall market of the media industry, occupying almost half of the market of the media industry. Media such as broadcasting, periodicals, audio-visual and movies have a smaller market size and limited room for maneuver to cope with the impact of changes in the media environment.

Since 2012, China's General Administration of Press and Publication (GAPP) and the Ministry of Finance (MOF) have begun to increase support for cross-border mergers and acquisitions (M&A) by state-owned cultural enterprises. The Guiding Opinions on Accelerating the Reform and Development of Publishing and Media Groups explicitly proposed to break down regional blockades and industry barriers, support the development of cross-media, cross-region, cross-industry and cross-ownership development of publishing and media groups, and cultivate a number of large-scale backbone publishing and media groups with annual sales revenues of more than 20 billion yuan. The Circular on the Management of State-owned Capital Operation Budget Expenditure of Central Cultural Enterprises supports central cultural enterprises as the main body of mergers and acquires the ownership and controlling right of the merged enterprise by means of capital investment and purchase or holding, or establishes a new enterprise through merger. In the "National" Twelfth Five-Year Plan for Cultural Reform and Development "and other national policies to promote and guide, China's traditional media in the system will further change, tend to be flexible and market-oriented, competitiveness will be greatly enhanced.

China's media advertising industry is developing rapidly, the number of professionals is increasing, the advertising talent team is constantly strengthened, for the rapid development of China's advertising market has made no small contribution. According to statistics, at this stage, the degree of specialization of China's advertising market has risen significantly jumped to the third place in the world.

The latest data released by the State Administration for Industry and Commerce (SAIC) shows that China's advertising business units have reached 300,000, with nearly 2 million advertising employees and an annual advertising turnover of more than 300 billion yuan, and the total size of the advertising market has surpassed that of Germany to rank the third in the world, second only to the United States and Japan.

Since the reform and opening up, China's rapid economic and social development, driven by the national advertising turnover increased by an average of about 30% per year, making it one of the fastest growing industries. During the "Eleventh Five-Year Plan" period, China's advertising turnover in the case of a high base, but still maintain an average annual growth rate of more than 10% of the development rate. At the same time, the degree of specialization of China's advertising industry has increased significantly, and the construction of advertising talent team has been strengthened.

The development of the advertising industry has in turn become a positive driving force in guiding consumption, expanding domestic demand and stimulating economic growth. During the "Eleventh Five-Year Plan" period, for every 1-percentage-point increase in national advertising turnover, the value-added of the secondary industry increased by 1.62 percentage points, the value-added of the tertiary industry increased by 1.94 percentage points, and the total retail sales of consumer goods increased by 1.6 percentage points.　　The impressive achievements of China's advertising market have encouraged the development of China's advertising industry, boosted economic growth and contributed to the country, which is a good news to be cheered up. 2012 will be the year of policy implementation. Among them, the key policies for the reform of operating cultural industries mainly include the integration of cable networks, the restructuring of non-current affairs newspapers and magazines, and the restructuring of state-owned arts and cultural troupes. Policies for the development of new cultural industries mainly include the construction of new media broadcasting and control platforms, policies to promote the development of the film industry, and support for film and television content production enterprises.

New media is accelerating the replacement of traditional media. It is expected that by the end of 2012, the number of Internet users will be close to 600 million, and the number of broadband users will be close to 190 million. New media will accelerate the impact of replacing traditional media, especially print media and cable networks; online video, IPTV and other new media will grow at a high speed.

The trend of content is more obvious. As demand exceeds supply, the price of movie and TV copyrights will continue to show an upward trend, and the profitability of movie and TV production enterprises will continue to rise.

In terms of new media, China's Internet economy continued to grow at a rapid pace in 2011, with its contribution to the national economy rising. From the perspective of the media industry alone, online advertising revenue amounted to 51.19 billion yuan, an increase of 59.4% year-on-year; online game revenue reached 41.38 billion yuan, an increase of 17.5%.

From the structure of the Internet economy market in 2011, e-commerce, mobile Internet and online games accounted for 70.2% of the economic scale of the Internet market*** and became the backbone. In addition, mobile media such as cell phones and mobile Internet development also showed strong momentum.

"Twelfth Five-Year Plan" period, China's economy will continue to maintain a stable growth trend, the media industry is expected to continue the momentum of high-speed growth, with the advancement of the three-network convergence and the development of new media, China's media industry there is still a huge market space. China's media industry in the development of these years can be described as blossoming, in the media institutionalization reform, more so that some of the new online media to participate in the use of advanced Internet platforms and traditional media to fight. In the resources and contacts on the emerging network media, although it does not have the advantage, but fast and convenient characteristics and compared with the traditional media, ultra-low prices, so that the network media in the advertising industry is unique. As we all know, advertising is an indispensable part of the media's survival, but the net media in the case of not taking advantage of the traditional advantages of the hard to have not much of a pool of fish into the arms, which also shows that the net media is bound to be the mainstream of the development of China's media in the future.

In short, the development of the network will also drive the change of China's media, from the previous television, newspapers, radio to the diversified network media platform transformation is only a matter of time.