Redstone
SYDNEY -- Viacom chairman Sumner Redstone's abiding passion for China, its people and culture is paying dividends as music web MTV has clinched a ground-breaking cable deal in southern China and a video distrib pact for sister web Nickelodeon's programming.
MTV China launched Wednesday in the economically booming Pearl River Delta in Guangdong province, initially reaching 1 million cable homes.
It's touted as the first global brand to get rights to air a round-the-clock channel in China (a few other services including AOL Time Warner's entertainment web CETV and News Corp.-backed Star TV's Starry Sky also are carried on cable in Guangdong).
The net is an outgrowth of the channel that's already available in hotels and foreign residential compounds.
Separately, Nickelodeon will co-produce and distribute Chinese-lingo Nick series on DVD/VCD with Shanghai Audio & Video Press.
Redstone, who has been to China numerous times in the past five years and has twice met President Jiang Zemin, was personally involved in hatching both deals.
"These agreements are the beginning of a new period of creative collaboration and expansion for Viacom and MTV Networks in China," Redstone said.
He hopes to persuade the government to allow MTV China to spread to other cities including Beijing and Shanghai.
"I've been discussing that prospect with various ministers, and we will talk about it again when I go back there in the fall," Redstone told
Daily Variety. "They have made it clear that while it's not assured, it's not impossible."
He said negotiations are advanced for a co-venture between Viacom and the State Administration of Radio, Film and Television to produce Chinese programming that would screen in China and be exported to the rest of the world.
"I've been building relationships of trust and loyalty and even affection," he added. "(The government) wants help to export Chinese music, culture and heritage to the rest of the world."
Viacom has been playing its part in that mission by distribbing China's English-lingo channel CCTV9 in hotels across the U.S.; sponsoring the China Broadcasting Cultural Orchestra's U.S. tour last month; and promoting the annual "Cheers to China" music gala which travels the world.
The Viacom topper is excited about the potential of China's TV market. There are 20 million TV homes in Guangdong alone and the province, with a population of 110 million, accounts for a whopping 22% of the country's gross domestic product.
MTV programming has long been syndicated on terrestrial and cable channels in China, airing up to six hours a day, and reaches 70 million homes. Nick-branded programming is available in 50 million homes.
The MTV Networks' ad revenues in that territory surged by 46% last year and now boast more than 200 multi-national advertisers, many of which came aboard after China joined the World Trade Organization last year.
"We are now in profit in China," Redstone said.
MTV Networks Intl. prez Bill Roedy, who was in Beijing for MTV China's debut, said the firm has been able to negotiate sub fees in some of its cable deals but admits, "It's not a lot -- advertising is our primary revenue-driver."
The video deal will see customized versions of series including "Rugrats," "Clarissa Explains it All," "Cousin Skeeter" and "Invader Zim" released in China.
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