Management and Operation of Chinese Television Media

Author: Zheng Wei
Publisher:
Publish Date: 2006-06-01
Features: Four Strategic Pillars of Phoenix TV
Two years after its establishment, Phoenix TVed into a encrypted pay-per-view movie channel. Subsequently, it embarked on an unrelenting path of expansion: In August 1999, Phoenix TV launched its Europe Channel; On New Year's Day 2001, its America Channel and News Channel went on air simultaneously, while the Chinese Channel was granted permission to broadcast in the Pearl River Delta region. In early 2003, its News Channel secured a cable broadcast license in mainland China, significantly expanding Phoenix's revenue streams. Meanwhile, "Phoenix" had evolved into a television platform with five channels, covering 54 countries and regions in Asia-Pacific and nearly 40 countries in Europe and America.
Strategy One: Differentiation
If a company can provide customers with something unique, it gains a competitive edge through operational differentiation. When Phoenix TV was founded, its project positioning was "A grand gathering of east, west, north, and south, offering audiences an alternative choice." This indicated that Phoenix TV implemented a differentiation strategy from the outset, distinct from mainland Chinese television and providing audiences with "alternative choices." For a long time, mainland audiences had been accustomed to a single news style. Now, Phoenix TV offered them a new perspective, an "alternative eye" to observe the world and themselves. "Phoenix" served as a "bridge" between the mainland, Hong Kong, and Taiwan, fully leveraging its unique geopolitical role to express opinions and disseminate information. It gave sufficient attention to various information, events, and stories that were difficult or impossible to disseminate in mainland China, and conducted in-depth and substantial reporting. With "Phoenix's" capabilities, it could not cover every aspect of global and mainland news comprehensively. Instead, it chose a different approach, angle, and style to report on events.
Phoenix TV President Liu Changle proposed that as a satellite channel, Phoenix's mission was to provide audiences with alternative choices, avoiding direct competition with other television stations. Therefore, "Phoenix" often focused on filling gaps. For example, by positioning its news program as "" (), the goal was not to provide all-encompassing coverage but to focus on "key points," thus avoiding the burden of "reporting everything." "Phoenix" provided many "filling the gaps" news stories for mainland audiences, such as "Zhu Rongji's World Bank Speech," "Hong Kong's Return Ceremony," "Peking University's Centennial Celebration," "Jiang Zemin's Visit to Peking University," and the millennium-themed large-scale report.
Phoenix people often say, "When major events happen, I am on the scene." During major news events like the funeral of Princess Diana, Jiang Zemin's visit to the U.S., and Clinton's visit to China, when CCTV reported them in its usual news and special segments, "Phoenix" provided comprehensive live coverage. These reports opened a new window for audiences to observe the world, satisfied their curiosity, and quickly established "Phoenix's" reputation. Notably, the live broadcast of the "9/11" attacks. When the Twin Towers in New York were attacked at 8:48 a.m. local time, Phoenix TV's New York correspondents immediately notified the Hong Kong headquarters. The Chinese Channel then interrupted programming with the news "America Attacked" and live footage. Subsequently, audiences witnessed the attacks on the second tower and the Pentagon in Washington D.C. in real time. "Phoenix" fully leveraged its global news bureaus, mobilizing staff on and off camera, as well as hosts and correspondents, along with real-time translation, to continuously broadcast for 35 hours, delivering timely and detailed coverage of this century-defining event.
Choosing "alternative survival," "Phoenix" does not occupy the mainstream. "Phoenix's" strategy is not centered on any single region within the Chinese-speaking audience base but rather embraces a "pan-Chinese" concept. They have incorporated diverse styles and approaches into "Phoenix," making it both familiar and fresh to every viewer.
Strategy Two: Cost Leadership
In addition to its differentiation strategy, Phoenix TV's cost leadership strategy has also been highly successful. Under this strategy, companies strive to minimize costs and maintain strict control over expenses, aiming to become low-cost producers in the industry.
In Hong Kong, Phoenix TV's studio is only as large as a typical living room, combined with offices, control rooms, and other spaces, covering a total area of only 3,000 square meters. It is not located in the bustling Central business district but in a residential area in Kowloon. The Beijing Phoenix Club is squeezed into a six-story building near Renmin University. The entire staff of Phoenix TV's Chinese Channel consists of only 150 people, and the total staff of the entire Phoenix Holdings Company, which operates five channels, is no more than 300-500. Even the prestigious program "" (Phoenix Morning Express) has a team of just four members. The "Millennium Journey," which traveled over 40,000 kilometers and passed through 11 countries, had direct costs of only over 8 million yuan. All these figures are things mainland Chinese television stations would never dare to imagine.
What makes "Phoenix" brilliant is its successful implementation of low input with high output. The programs produced by Phoenix TV generally follow a "scissors and talk" model—entertainment, news, and finance all operate on this framework. Moreover, "Phoenix" excels in helping audiences understand the causal relationships and behind-the-scenes dynamics of news, while boldly inviting guests to make predictions and comments. This not only significantly reduces costs but also achieves high ratings and advertising revenue due to its unique format. It can be said that "Phoenix" has explored a shortcut to high efficiency through low input.
Cost leaders cannot ignore differentiation strategy. If a product is not recognized by the market, even the lowest cost is wasted. The success of "Phoenix" is the result of the (stacking) and combined effect of both strategies—providing audiences with alternative choices while maintaining low costs. This is the key to "Phoenix's" rise.
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