Posted: Tue., Mar. 25, 2008, 2:55pm PT

Bertelsmann buys into China unit

Media giant enters market with Ad Society

By ED MEZA

German media giant Bertelsmann has entered the Chinese TV industry with a 16.5% stake in production group-ad agency Ad Society.

The Chinese company, whose shareholders include the People's Daily and the publicly traded Hong Kong-based multimedia group Roadshow, produces entertainment formats seen on more than 200 regional channels in China.

Bertelsmann's pan-European TV division RTL Group acquired the share and holds an option to raise the stake.

Bertelsmann has long been exploring the Chinese market and in 2005 inked a joint venture with the Liaoning Publishing Group to launch Bertelsmann China Direct Group to sell books in the country.

News of RTL's involvement in the Chinese TV market follows public apologies and corrections issued by RTL's German channels and its news web N-TV for misrepresentations of the unrest in Tibet and Nepal.

A spokesman for N-TV said a report that aired March 20 on the conflict in Tibet inadvertently showed images from neighboring Nepal, where Tibetan demonstrators have also clashed with police.

The spokesman said editors caught the error, and the images, which came from international news agencies, were immediately removed.

Similarly, RTL Television said that an image on its website reportedly showing Tibet was also a photo of demonstrations in Nepal.

A number of high-profile international news organizations have been accused by the Chinese government of falsely reporting events in Tibet.


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