Analysis Of The Economic Performance Of China's Mass Media Industry

In the process of China's economic reform, great change was seen in China's mass media industry, such as changes from a focus on propaganda to that on both propaganda and economic performance. Accordingly, the target of regulation policy also shifted to the economic performance of China's mass media industry. At the international media market, China's media industry is less developed. Improving the economic performance of China's mass media industry is vital to compete with competitors from other countries.The modern industry organization theory considered that there is intrinsically logical relationship among industry market structure, business behavior and market performance. Optimizing the market structure and inciting the market behavior can effectively improve economic performance of mass media industry. Therefore, it is necessary to use the above method to analysis the economic performance of China's mass media industry.The framework of analyzing economic performance of China's mass media industry is based on model of structure, conduct and performance (SCP). Under this framework, the economic performance of China's mass media industry is accessed, and then the market structure and the market behavior of China's mass media industry are considered, finally the suggestion on policy making is given according to media industrial regulation from western countries.The main conclusion is as follows. The administration intervention on China's mass media industry contributes to the low economic performance of the industry. Removing the administration intervention on China's mass media industry is the fundamental measure. The measures of re-targeting of regulation of China's mass media industry should been taken.The contribution of the paper can be seen in three aspects. Fist of all, under the framework of SCP, institutional analysis is been used to characterize the market structure of China's mass media industry and the media behavior under this market structure, and then accesses the economic performance of the industry. Secondly, author argues that the low economic performance of China's mass media industry resulted from the administration intervention on the industry. Thirdly, removing the administration intervention on the industry can be done by restructuring the regulation of China's mass media industry, so as to improving the economic performance of China's mass media industry.