WHO OWNS HONG KONGS MEDIA AND BEYOND

1
WHO OWNS HONG KONGS MEDIA -- AND BEYOND

• An evolving story
• Critical Issues in Journalism and Global
  Communication, JMSC 6002
• March 2002, D. Weisenhaus

2
Hong Kongs Media Market

• The scene
• 14 daily Chinese language newspapers
• 2 English-language dailies
• 3 radio companies (10 channels)
• 4 free-to-air terrestrial channels, TVB the
  market leader
• 4 pay cable companies (HK cable, iTV, Yes-TV,
  Pacific Digital Media
• ???Internet companies

3
The Newspaper Market

• HK newspapers are dominated by Oriental Press
  Group and Next Media, which control 70 percent of
  the newspaper readership market
• 1) Oriental Daily News (OPG) 2 million (34)
• 2) Apple Daily (Next) 1.5 million (25)
• 3) The Sun (OPG) 599,000 (10)
• 4) Ming Pao 306,000 (6)
• 5) SCMP 269,000 (4)
• 6) Sing Tao 136,000 (2)
• (Source 2001 Feb.ACNielsen Hong Kong Millennium
  Media Index RARD Report)

4
The Magazine Market

• Dominance less severe but most of the weekly
  magazines w/high circulation now belong to Next,
  which controls one-fifth of the market.
• 1) Next Magazine (8)
• 2) Easy Finder (6)
• 3) Sudden Weekly (5)
• OPG used to have 11 of market but sold
  Eastweek, Oriental Sunday in 2001 to Emperor
  Technology for HK65 million. Emperor publishes
  economic/entertainment magazines, including
  Economic Digest, My Money.

5
Oriental Press Group

• Oriental Daily News, The Sun, The Sun Racing
  Journal, East Touch
• 1969 Ma brothers founded ODN, which became HKs
  best-selling paper in less than 10 years. Largest
  shareholder, Lam Wei-chen, wife of younger
  brother, Ma Sik-chun, who fled to Taiwan after
  drug charges in 77.
• One son, Ma Ching-kwan, stepped down as chairman
  in 98 after ODN was convicted for contempt of
  court and 2 years after English-language-Eastern
  Express folded. Another son, Ma Ching-fat, is
  current chairman.

6
Next Media

• Includes Apple Daily, Next Magazines in
  HK/Taiwan, Sudden Weekly, Eat Travel
  Weekly--Expected profit of HK200 million for
  2001, down from 310 million in 2000.
• Jimmy Lai, 53, Next Media chairman, largest
  shareholder, anti-Beijing
• Made in Giordano clothing chain, founded Next
  Media 10 years ago, launched Apple Daily in 95,
  lost big in adMart, e-tail venture.
• Started Taiwans Next Magazine (cir. 200,000
  losses 68M) in May 2001, using staff of defunct
  online paper, Tomorrows Times.

7
Ming Pao Enterprise

• Includes Ming Pao Daily News (HK, Canada, NY),
  Yazhou Zhoukan, Ming Pao Weekly, Ming Pao
  Monthly, City Childrens Weekly, Hi-Tech Weekly.
  Also, Mingpao.com.
• Largest shareholder, Tiong Hiew-king, a
  Malaysian timber baron, net worth 1.4 billion.
• MP founded in 1959 by Louis Cha, martial arts
  novelist, evolved into paper for intellectuals.
  In recent survey, ranked most credible local
  paper.

8
more Ming Pao

• March 2001 -- Tom.com, controlled by Li
  Ka-shings Hutchison Whampoa/Cheung Kong Holdings
  purchased 50 of internatl Chinese newsweekly
  Yazhou Zhoukan for HK60 million.
• Feb. 2001 -- Mingpao.com sells 10 to CCT
  Telecom Holdings for HK100million. In 2000,
  Yahoo.com buys 3
• Profits down -- Losses of HK14 million for six
  months ending Sept. 2001, compared to profit of
  HK49 million same period year before.

9
South China Morning Post Holdings

• Largest shareholder, Kerry Group, Robert Kuok,
  78, ethnic Chinese businessman in Malaysia (net
  worth U.S.5 billion, made cornering piece of
  Malaysias sugar trade.
• In addition to media, Kuok has interests in
  hotels (Shangri-La Group), shipping, plantations
  and commodities in 15 countries. Sons Ean, 46,
  (chairman of SCMP Holdings) and Beau, 50, help
  run company.
• Launched 100 million venture to market
  cosmetics via Internet in China and Japan.
• Kerry Group to help build a logistics hub for
  2008 Olympics

10
Sing Tao Holdings

• Sing Tao Daily (H.K., Australia, N.Z., U.K.,
  U.S., Shenzhen, Canada), Hong Kong iMail, hotels,
  real estate.
• Founded in 1938 by Aw Boon-haw, famous for
  ointment Tiger Balm, who left business to
  daughter Sally in 1954.
• Sold in 1999 to Lazard Asia Fund.
• 51.4 sold in Jan. 2001 to Charles Ho, 52,
  tobacco tycoon, for HK356 million.

11
New Player Tom.com

• Went public in February 2000. Part of Hutchison
  Whampoa and Cheung Kong Group real estate,
  retailing telecommunications and shipping.
• Purchased in past 6 months 30-40 of Taiwans
  consumer magazine market. Now with 40 magazines
  has 60 of Taiwans total magazine market.
• Hong Kong 50 of Yazhou Zhoukan
• Largest outdoor advertising firm in China,
  favored to become sole Chinese advertising agent
  for 2008 Olympics.

12
Tom.coms future?

• Wants to build a cross-media, cross-strait
  platform -- one-stop shop that can offer ad
  space, content on websites, TV, magazines,
  newspapers and be largest producer of
  Chinese-language TV programming.
• The only question is whether we will become the
  largest Chinese media group or the largest
  Chinese media group that is ultimately part of an
  even great media group. - Sing Wang, Tom.com
  chief executive.

13
Media Trend One

• Concentration of corporate control through
  acquisitions
• Robert Kuok Malaysian tycoon w/business empire
  in 15 Asian countries. SCMP, ChinaWeb (10),
  online bilingual financial news services,
  Stockhouse Media (5.4), operates financial
  portals in HK, US, UK, Canada, Australia
• Tiong Hiew-King -- In addition to Ming Pao,
  controls Sin Chew Jit Poh, largest -circulating
  Chinese paper in Malaysia, launched The National
  in Papua New Guinea and a Chinese newspaper in
  Cambodia
• Charles Ho, tobacco tycoon, Sing Tao, ChinaOnline

14
Media Trend Two

• Non-media international and regional
  conglomerates emerging as major players
• Li Ka-Shing, net worth US10 billion, 23th
  richest man in world (according to Forbes 2002).
• Tom.com, StarEast, Metro Channel Radio, HKCable
  TV, Yazhou Zhoukan
• Through close associates Sing Pao daily, Wide
  Angle Press, China Youth Net.com

15
Media Trend Three

• The China Factor Growing integration with
  Mainland China in ownership, market and
  production
• Sing Taos Charles Ho is part of Global China
  Technology Group. Has joint venture for
  Xinhuaonline (with Xinhua News Agency), which
  launched last year.
• Ho is delegate to mainlands advisory body,
  Chinese Peoples Political Consultative
  Conference .
• Last year, Hong Kong iMail revamped to become
  business paper oriented to covering Mainland
  business.
• Li Ka-shing, Robert Kuoks Kerry Group--Olympics
• Mingpao sold 10 to CCT Telecom (Xinhau 12.5
  stake

16
Media Trend Four

• Media battlefield is
• regional and global
• Hong Kong is media capital of Chinese diaspora
  around world Sing Tao, TVB, Yazhou Zhoukan.
• More trying Next Media, SCMP.com, China Web

17
Media Trend Five

• Media owners expand through alliances and
  networking.
• Li Ka-shing Cheung Kong, HSBC, Hang Seng Bank,
  Hutchison Whampoa to form iBusiness Corp
• Global China Tech Group (Ho) and Xinhua
• TVB partners with Thai TV, Malaysia/Taiwan
  investors
• Mingpao.com and CCT, Xinhua
• News Corp with Renren Media, a bilingual website

18
Future Survival

• Dotcom boom is bust but some are surviving
• Profits down for newspapers but up elsewhere in
  media companies?
• More alliances, acquisitions, networks?
• More integration of cross-platform in media
  companies?
• What does it mean for individual properties?