Friday, December 02, 2005

economy - Why TiVo will not work in China

What would the world be a nice place when you could transplant a successful business model from the US to China. That would save a lot of China-experts a lot of work and they could retire. Yesterday some messages on my radar suggested that the popular TiVo service would enter the China market, with the help of a Chinese company.
TiVo, for those who are not familiar with the US broadcasting systems, allows viewers to tape their popular shows, skip the commercials and see them at a moment they like. Since one-third of every TV hour in the US is covered with boring commercials, that is a very much appreciated service.
Fortunately, the new joint venture starts in Taiwan and has mainly the ambition to enter also the rest of greater China. Not sure about Taiwan and Hong Kong, but at this stage I do not see how there could be a market for TiVo on the mainland.
Actually, I discussed such a service with a few people of another company earlier this year. We had a laugh, a drink and decided to focus on many other proposals with potential.
First, in China there is no market. Unlike the US, most TV-viewers love commercials, because they are often much better made compared to most of the domestic TV-shows. While it is very hard to make any money out of Chinese pockets, I do think that charging people for watching commercial would be more viable than the reverse.
On top of that, most of those boring Chinese TV-shows are repeated relentlessly. The chance of missing a show is rather unthinkable, so often they are showed on TV.
In case there would be a market, there would be a third reason why TiVo would not be successful. It would be banned. A service set-up by a Taiwanese company that would hurt the income of state-owned TV-stations! How much more politically incorrect you can get in China?

Books on media in China

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