[photopress:IT_kristanna_loken_131_1.jpg,full,alignright]There are strict new rules limiting video-sharing to state-controlled companies. But, as in many cases in China, there are different ways of viewing this.
China-based Web sites already need a government license that only companies majority-owned by Chinese nationals can get, and managers of private sites based in China say they already take out ‘inappropriate’ content. The definition of ‘inapprorpriate’ is not something easily given, easily nailed down.
The new regulations — taking effect Jan. 31 — requires the state has a controlling interest in any video entertainment Web site.
There are two ways of looking at this. Jeremy Goldkorn, editor-in-chief of Danwei.org, an excellent Web site that covers Chinese media issues, said, ‘It’s a very clear message these Chinese film governing authorities have decided to send — that they’re taking this stuff seriously and they’re going to regulate it.’
On the other hand Jeremey Goldkorn believes Beijing won’t shutter private video sharing Web sites because it will send the wrong message to foreign investors who might desert the world’s second-largest Internet community.
Video sharing Web sites brought in just RMB40 million Chinese, about $5.5 million, in revenue in 2006 — a figure the Internet Society of China expects to grow to more than fivefold by 2009. Provide the government does not use heavy boots to implement the new legislation.
Youku.com founder Victor Koo said, ‘It is not currently clear how big the impact is to the online video space, as this will depend on the interpretation and the implementation of such policy guidelines.’ Youku’s legal advisers are in touch with the government.
In a sense it is a storm in a tea cup and it shows an over-sensitivity on the part of the government. All sites have fairly strict controls to keep out pornograpic and inappropriate material. But the new rules may worry possible foreign buyers.
J.P. Morgan’s Wei said the new rules clarifies policy. He said, ‘In the long term, it is a good thing for the industry because it clarifies what and who and how the industry can do video sharing.
‘I think some smaller players probably are going to be affected. But I think for the leaders in this space … I’m relatively comfortable they are going to work closely with the government and have a meaningful business.’ And we are quite sure there will be no interference with Kirstanna Loken in our illustration. She looks as if she has enough problems already.
China is the world’s second largest Internet market, with a total audience of about 164 million, including people who surf the Web from public computers, according to the research firm comScore Inc. Only the United States, with about 182 million Internet users, boasts a larger online audience.
Source: AP