ATF Session Offers Tips on China Format Market

SINGAPORE: The format-licensing business in China has matured considerably over the last few years but challenges remain for distributors, Rebecca Yang, the CEO of IPCN—the venture that brokered deals for the Got Talent and The Voice formats in this massive market—told ATF attendees at an afternoon session in Singapore today.

The day of well-attended sessions came ahead of the formal opening of the ATF market at the Sands Convention Center in Singapore tomorrow (Wednesday). Yang participated on one of several sessions on China. She noted that IPCN—led by Yang and ex-ITV Broadcasting chief Mick Desmond—has been a leading entity in the creation of a legitimate format business in China. "There was no such thing as licensing a format [in China] pre-IPCN," she told delegates.

Yang traced the development of the Chinese format business back to Hunan’s Super Girl, which many called a ripoff of the Idols format. At the time, Yang said, Desmond took Hunan CEO Ouyang Changlin to meet then-FremantleMedia chief Tony Cohen. "An interesting conversation took place that day and the debate was whether Super Girl was before Idols or vice versa…. An important decision was made, Mr. Ouyang said Hunan from now on is going to take the lead to respect IP rights, to take the lead in licensing formats."

Today, Yang continued, "the Chinese broadcaster no longer wants to be the frog at the bottom [of the well]…. They want to learn, they want to reinvent themselves and they want to change." A new generation of Chinese media executives, Yang says, has surfaced—"born and bred in China, foreign educated, legally savvy, [who want to] build the business into a sustainable industry."

The first legitimate format deal in China was signed in 2007, Yang said, with IPCN clinching a deal for 1 vs. 100. The early days of the business were particularly challenging. "It cost an arm and a leg to get one deal done. The beginning is always the hardest." Translating long contracts into shortened versions in Chinese was especially problematic. For example, "there’s no act of God [in Chinese contracts]—there’s no god in china." It was also difficult convincing broadcasters that they needed to pay for rerun rights to shows.

"China can be easy or hard," Yang said, "it depends on how you navigate it." Developing relationships based on mutual respect is essential. "It’s not your way or my way, this type of attitude only arouses resentfulness."

Furthermore, it’s not just about having a good format—"it’s about the right product." In addition, those in the Chinese media industry must know how to deal with the regulators. "A senior minister at SARFT enlightened me by saying there are three things you shouldn’t do: challenge SARFT’s intelligence, challenge SARFT’s patience, challenge SARFT’s borderlines."

Yang also discussed the importance of securing top tier sponsors, particularly for big-budget formats; P&G came on board for China’s Got Talent, while herbal tea company Jia Du Bao was a partner on The Voice of China.

"Format licensing is now an effervescent business in China," Yang concluded, adding, however, that it will fluctuate, "it will expand and contract," based on how formats perform; a low-rating title can often scare a broadcaster off from licensing formats again, she said.