China TV Industry: Institution Change And Demands Equilibrium

According to theory of industrial economics, ways that further industry development are mainly advancing production factors, establishing good market environment, expanding domestic demand and innovating institution. The most important way that further China TV industry should be institutional innovation. Numerous studies show that institutional change brought the rise of the western world, that system reform has brought the rapid development of China's economy, and that development of China's culture industry(including television industry ) depends on the the policy .About Chinese TV industry institution change, many scholars amd practitioners had made all kinds of explanation, and presented all kinds of meritorious proposals from the angle of the theory and practice. But, the huge gap is still far from bridge, that between policies and practices, between theory and practice and among conclusions from different disciplines and theory.Based on the theory of institutional changes of new institutional economics, this dissertation detailed analyses a series of key institutional innovation steps of China TV industry, and analyses benefits and costs of institutional innovation in the current digital era, and analyses the "needs" and "demands" of interest group related to TV industry. The dissertation presents such views about the decision factors, internal mechanisms and the future direction of institutional changes of television industry in China:First, the "Action Groups" of institutional innovation of TV industry consist of central departments of government and the Party, the local departments of government and the Party, TV stations, advertisers, investors and audience .It is the interest game among them that push the process of TV institutional changes in China. The market demand changes are the direct reasons that influence benefits of "action groups"; Domestic and foreign institutional environment changes are the reasons that influence costs of "action groups"; Technical progress influence both benefits and costs of them. According to the interest adjustment pattern made by TV industry institutional innovation among each stakeholder, this dissertation roughly divided the innovations into "increment interest type" institutional innovation and "existing interest type" one. "Increment interest type"institutional innovations were executed relative smooth because them didn't reduce interest of original stakeholders and increased other; " existing interest type " institutional innovations were executed relative slowly because them changed existing benefit pattern .The TV industry institutional innovation model in China can be expressed roughly as follows:Second, the demand on TV will market continuously increase and that will bring the continuous potential benefits which will be continuous motivation of television industry stakeholders. "Increment interest type" institutional innovation will continue fast, especially in the field about new media, field of program production and other cultural products with thin ideology. "Existing interest type "institutional innovation will act relatively difficult, especially in the traditional TV market, in the field of program with strong ideology attribute. But the best-off TV stations and the poorest stations will also achieve breakthrough of institutional innovation, especially on the Potential benefits changing Primary action groups innovating in institution Institutional environment changing Demands on TV Market changing Secondary action groups innovating institution occasion demand tightening, at where "the institutional innovation entrepreneurs" appear who are good at reducing risks and increasing benefits. Continuous transformation of institutional environment will continuously change the benefits and costs of "action groups" so that their motivation. With the process that CCP strengthen the legitimacy of her regime from source of economic performance and constructing a harmonious socialist society bases on the traditional of sources, with the process that cultural industry and information industry are strengthened the in national economy, the institutional environment overall is conducive to the TV industrial institutional innovation. But the speed of environmental changes is filled with uncertainty, even direction in the short term is uncertainty also, because our Party and government's cognitive and need on ideology propaganda are somehow uncertainty, and their assessment of the risk of mass opinions out of control is uncertainty, and the result of stakeholder action game may be also uncertain. So there is big uncertainty about "existing interest type" institutional innovation in the short term, however, accelerating industrial institutional innovation tendency is irreversible in the long term.TV industrialization has improved productivity efficiency and the satisfaction of demand, but the affordable demand is not equal to the audience's comprehensive "need". The political program and public programs meeting the higher needs of audience lack and relevant institutional innovation lacks also.The dissertation demonstrates that views like follows:The section of introduction introduces the research background of Chinese television which industrial development is relatively backward, cultural value relative chaotic, And raise the research questions. The section also introduces literatures on television industry research and new institutional economics theory, and the core concept of this dissertation. The first chapter observes and studies early Chinese TV institution and its process of decision-making and execution, and analyzed the characteristics and reasons of the institution. We can not fully understand TV institution today without so detailed and in-depth study on the origin of TV industrial institution.The second chapter studies the process of decision making and executing of "increment interest type" institutional innovation, such as advertising business institution, "four-level-running", cable TV institution, and both personnel and financial institution .The chapter also introduces the institutional innovation case in Shanghai, Hunan and Guizhou province. It can be argued that these processes of institutional innovation are gradual, marginal process, and are the results of stakeholders'tradeoff about their benefits and costs on the process of institutional innovation. The third chapter studies the process of decision making and executing of " existing interest type " institutional innovation, such as"ruling disorder of TV programs","Media Conglomeration"and"commission", and also analyzes stakeholders'cost-benefit trade-offs .The fourth chapter studies the tremendous industrial prospect of digital technology, from the way of production capacity, consumption patterns and economy of scale. The chapter also analyzes the bottleneck of television industrial institution, and argues that technical revolution will bring significant change to interests of Party and government department, television station, investors, the audience, whose costs and benefits so that motivation of institutional innovation will changes . The cost-benefit trade-offs can be demonstrated during the process of"Triple–net convergence"policy decision and execution.The chapter 5 analyses the audience's complex needs structure and their demand measured by purchasing power in depth. This chapter also analyzes the Party and government's deep-seated need of regime legitimacy, and then studies the motivation of institutional innovation. This dissertation argues that the final judgment of TV institution efficiency is whether it making for a full meet of audience's need, including both demand with purchasing power and need without purchasing power. This chapter then analyzes the efficiency and border of TV industrialization in China. In the end, the dissertation expounds its research conclusion.The innovations of this dissertation lies in: (a), Discussing Chinese TV Station's propaganda task from the angle of view that the government has propaganda need because of carrying out national "surpassing strategy" and consolidating regime legitimacy .Which is a effectively innovation to understanding the government's political propaganda target and its changing rules in depth; (b), Clearly defining extension in, on the basis of comprehensive cost-benefit trade-off, the dissertation explains television industrial institutional innovation with more explanatory power, compared with the previous literatures that explain only based on market interests ; (c) The dissertation makes an important theoretical innovation that explains TV industrialization in China from the social reasons and technology which causes TV program's attribute of "private goods" intensifies.