China's Media Industry Capital Operation

In western developed countries, media is among most profitable industries, and is playing an important role in civil economy. The three biggest media groups in America——AOL Time Warner,Disney and News Group of Murdoch have already entered theglobal enterprise 500. However, for a long time, media has always been only the propagandistic instrument and the mouthpiece of the party and government in our country. Practicing the management mode of facilities, it hasn't been long time since it began to develop as an unattached industry. Recent years, with the government putting more emphasis on the development of culture industry and advancing the reform of culture system gradually, media has gained quite great progress, boosted up its economic situations. Moreover, a number of media groups have already been set up.Compared with the international media tycoon, not only the scale of the media industry but also the strength of the media group in our country is still small and weak. Faced with the gradual liberal media market, faced with the heated and heated civil competition and faced with the challenge of the Internet and other burgeoning electronics medium, civil media groups have come to know that they should expedite development through setting up groups, alliances and capital operations, among which capital operations is the most heated subject having been discussed about media industry. However, the development of media industry is different from other industries because of its intrinsic political property and special position. There are special advantages as well as lots of obstacles and potential problems in mechanism and system when implementing capital operation.Currently, the government maintains affirmative attitude to the capital operation of the media industry. However, worrying that the capital outside the industry would affect the public opinion direction, the government has not provided definite policy and limited the capital operation of the media group in many aspects. Along with the gradual advance of theories and practice, these problems will get resolved.Beginning from introducing media, media economy and media industry, combining the basic theories of the capital operation and the analysis of characteristicsto the western media industry, this paper analyzes the following content: the cause of capital operation, advantageous conditions, necessity and possibility, the problems that have occurred and the means of resolving them. In the end, we bring forward Dazhong Newspaper Group as an example, which is among the four experimental units of reform with culture system. Certain attempts on capital operations in the group are introduced here. Also, we put forward some suggestions on the future development of the group.The emphasis of this paper is neither to study capital operations purely from the view of economics, nor to study on how to carry through capital operations. I provide basic analysis to the special media industry based on my several years' practices in this industry, and so, it has distinct characterization of the media industry.