[lit-ideas] Re: Yahoo! Traitors with Clinton Sidebar

  • From: Eric Yost <mr.eric.yost@xxxxxxxxx>
  • To: lit-ideas@xxxxxxxxxxxxx
  • Date: Wed, 21 Sep 2005 15:19:49 -0400

Here's the fruit of some of Clinton's and Bush's laissez faire, and Yahoo!'s complicity. Note the reference to Clinton in paragraph nine. -EY

http://www.latimes.com/business/la-fi-chinamedia21sep21,0,6419134.story?coll=la-home-business


China Gets Tougher on Foreign Media
# Recent rules hinder entry into the market by Disney and others amid rapid industry growth.


By Don Lee, Times Staff Writer

SHANGHAI — After presiding over the opening of Hong Kong Disneyland last week, Walt Disney Co. President Robert Iger headed straight to Beijing to meet Liu Yunshan, chief of the Communist Party's powerful Propaganda Department.

Disney declined to say what the two men discussed, but it's a good bet that Iger, who will become chief executive Oct. 1, renewed his case for the Disney Channel in China, and that once again he was told to wait. Disney has been waiting since 2003 for a broadcasting license from Beijing so it can air its programs to some of the 340 million homes with cable TV.

Last year, prospects looked good when China moved toward loosening rules on foreign media investments. But in recent months, Liu and other leaders of the Chinese government have clamped down on foreigners' participation in China's burgeoning media industry, declaring last month that they wouldn't allow more foreign television channels and would tighten their grip on the 31 satellite broadcasters in China.

Chinese officials say they want to "safeguard national cultural security." But some analysts believe that the restrictions are aimed at keeping advertising revenue in the hands of state-controlled and domestic media enterprises. Even as Beijing has moved to limit foreign companies, it has encouraged the development of private Chinese media firms.

Disney isn't the only company hindered by the new rules. Viacom Inc.'s Nickelodeon children's channel has been waiting for two years for a broadcasting license. One of Rupert Murdoch's News Corp. ventures in China has been shut down. Time Warner Inc., Sony Corp. and others involved in co-production of movies in China now face greater censorship.

These media giants haven't said much about how the rules will affect their investment plans. For the most part, they're "sitting tight, not upsetting regulators and being more patient," said Vivek Couto, an executive director of Media Partners Asia in Hong Kong.

But frustrations are beginning to spill out.

Murdoch, who with his Chinese-born wife, Wendi Deng, has cultivated Beijing over the last decade to become the top Western television company in China, said at a conference Friday in New York that his company had "hit a brick wall" in the Middle Kingdom. In the last year, he said, China has backed away from opening up to foreign news organizations. He called Chinese authorities "quite paranoid about what gets through."

Richard Parsons, Time Warner's chairman, who also spoke at the session organized by former President Clinton, said the Chinese wanted to monitor the traffic and e-mails sent on the Internet. Parsons said that was why he bailed out of a deal to distribute America Online there.

Some industry executives and analysts view the curbs against Western media as part of Chinese President Hu Jintao's broader campaign to head off perceived threats to his rule. Communist leaders have long seen the media as more of a propaganda tool than a commercial enterprise. In recent months, the central government has reined in journalists and cut off Internet forums at some major universities as the Internet has helped to foster criticism of party officials and policies.

The restrictions on foreign media coincide with a changing of the guard at the State Administration of Radio, Film and Television, where longtime provincial official Wang Taihua replaced media veteran Xu Guangchun as head of the regulatory body.

Some American media executives also believe that Beijing's tightening reflects the deterioration of U.S.-China relations in the last year.

<snip>

Chinese analysts are skeptical. "China does not have a commitment to open its media industry," said Chen Shaofeng, vice director of the Research Institute of Cultural Industry, which is connected to Peking University.

Of Disney's chances of winning a channel in the near future, Chen said, "It won't happen."

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