GAPP Encouraging Development of the Audio-Video Industry
In an effort to address issues hindering development of the audio-visual industry in recent years, on July 20, 2009, the General Administration of Press and Publication (“GAPP”) promulgated “Several Opinions Concerning the Promotion of Healthy and Orderly Development for China’s Audio-Video Industry”. The Opinions included 26 articles outlining the industry’s development and focus, industry policy on mergers and reorganization, financing, and cross-industry cooperation.
Key points noted in the Opinions include:
- The promotion of corporative reform: A/V publication houses affiliated with higher learning institutions and local governments, excepting non-profit organizations, are asked to execute reforms before the end of 2009. Institutions affiliated with central government departments are required to complete the transformation before the end of 2010.
- Encouraging the establishment of A/V groups: Audio and video institutions with similar business scope are encouraged to establish joint trans-industrial and trans-regional companies, ultimately establishing three to five large comprehensive A/V groups and 10 to 20 distinct and specialized companies within three years.
- Restructuring of some A/V institutions: Large state-owned newspapers and publication groups are encouraged to incorporate A/V enterprises into their operations via acquisition.
- Establishment of a creative industry base: Beijing, Shanghai, Guangdong and other regions with competitive audio and video enterprises are encouraged to set up music and creative industry bases or parks.
- Digital transformation: Companies are encouraged to diversify publication channels through cooperation with telecom and network operators.
- Expand sales channels: A/V companies are encouraged to establish sales chains in supermarkets, shopping malls, gas stations, airports, restaurants, tourist spots, kiosks etc.
The Opinions also provide comments on preferential tax policies, revisions concerning regulations for audio and video products, and a crackdown on pirated items, pornography, and illegal publications.
