By Gordon Chu | February 23, 2009
What Makes China’s No. 1 Entertainment TV Station a Market Leader
Hunan Province is most well-known for a several things. Yes, it is the birthplace of Chairman Mao. Yes, it also has some of the spiciest (and best) Chinese food anywhere in the world. But, in the media industry, Hunan is very well-known for its excellent TV station.
Since 1997, Hunan Satellite TV (HSTV) is one of China’s most successful state broadcasters and has been widely recognized as the number one entertainment media outlet in China. News articles report about HST V, “Over the past 12 years, the company has grown rapidly, expanding its audience from 65 million to 880 million viewers. It also broadcasts to viewers in parts of North America, Asia, and Australia.” Not fully believing this statement until I was having dinner in a Chinese restaurant in Monterey Park, California when the TV behind me had the Hunan Satellite TV-produced program ‘Ugly Wudi’ televised – which begs the question as to why this inland province broadcaster has been so incredibly successful amongst giants such as CCTV, Beijing TV, and Shanghai Media Group.
To give some context, here are some major milestones in HSTV’s history:
1997 – First Hunan Satellite TV Program transmitted via satellite
1997 – “Happy Camp” program launch
1999 – Shenzhen Stock Exchange listing (the very first China Media IPO)
2002 – Entertainment Positioning: a new mission to create a “comprehensive channel highlighting entertainment and information”
2004 – “Super Girl” program launch
2004 – Brand Positioning: Launch of a new “Happy China” campaign that focuses on building nationwide brand awareness
2006 – “Happy Shopping” channel launched (the first national chain and new modern style TV shopping company in China)
2007 – “Happy Boy” launch
2009 – Awarded No. 1 Television Entertainment Brand in China ranking by the World Brand Lab in its “500 Most Valuable Brands in China.”
Hunan TV Program Highlights
Happy Camp variety program – breakout hit amidst the TV production wars of the ‘90s (1997)
Talk or variety shows are quite common in China nowadays, but back in 1997, nearly all the state broadcasters made a living exclusively from TV series. It was a drama-driven market and there was no appetite for variety shows. Every TV station was fighting to secure the first broadcasting right and copy right of TV drama series.
Unlike most, Hunan TV took the initiative “to be the first one to eat a crab” and launched Happy Camp (In Chinese, the phrase “The first one to eat a crab” refers to the first person who dares to take risks and try something new). The show was adapted from Hong Kong and Taiwan programs (where they flourished in those respective markets) where Chinese celebrity hosts and Chinese guests compete in various creative and humorous games. The show became a huge hit and soon established massive audience loyalty.
Princess Huan Zhu series (2000)
When Princess Huan Zhu first launched in 2000, audience ratings reached record highs – the highest of any in recorded TV series history. This light comedy brought laughter into Chinese families’ homes. Following its massive success, Hunan TV produced two other versions, selling the show to both Beijing and Shanghai TV stations.
Super Girl series (2004 – 2006)
Hunan TV’s Super Girl series was also another immensely popular hit show. Partly inspired by the UK’s “Pop Idol” series, Super Girl was an ultra popular national singing contest in China. It was an annual, exclusively female contest – any woman could participate, no matter their age or talent level.
On August 26th, 2005, the final contest on Super Girl secured 400 million Chinese viewers, according to Nielsen – and took Hunan TV’s viewership from less than 4% to 31.38% during the same time slot. This meaning nearly one out of every three Chinese person watching television was watching Super Girl – a phenomenon in Chinese TV history.
Ugly Wudi (Ugly Betty)
Sponsored by Unilever and perhaps the most well-known example of branded content in China, Ugly Wudi is the Chinese version of the US hit show Ugly Betty. With an estimated 73 million viewers on its opening night, Ugly Wudi ranked number one in its time slot across 30 markets everyday throughout the first season which garnered an audience share of 8.7%.
According to Millward Brown, at the end of the show’s first season, unaided awareness of Dove (main Unilever product marketed) rose 44% percent among all target consumers and more than tripled among those who watched the program. Needless to say, Ugly Wudi will continue to be the successful case study of branded content.
Targeted Brand Positioning
Entertainment
Well-defined brand positioning is the key of Hunan TV’s success. Ever since Hunan TV was established, it has always positioned itself as an entertainment channel whose mission it is to bring happiness to Chinese people. The idea of entertainment and “Happy China” was very well-received by the Chinese audience and was exactly what the market needed.
As Ms. Long, a Hunan TV producer, comments: “It’s all about entertainment. We are not interested in politics.”
If we examine all the Chinese regional satellite TV stations – of which there are over 30 – only Hunan TV and Shanghai Oriental TV apply targeted brand positioning. While Hunan TV is focused on entertainment, Shanghai Oriental targets the news. In the regional satellite TV sector in China, Hunan is ranked first while Shanghai Oriental is ranked second in terms of viewer ratings.
Targeting young people
Given its ‘pure entertainment’ position in the market, Hunan TV typically targets a young demographic – a group with tremendous purchase power.
“…Many TV stations want to diversify their programming and reach the largest audience. We, however, target only people age under 35, and with high production values – our attractive presenters and actors always capture the most viewers.” reports Mr. Chen Xiaodong, a producer at Hunan TV.
In August 2009, full-day Hunan Satellite TV’s CSM-22 ratings (22 cities’ viewership data during 24 hours) overtook CCTV ranking for the first time in history, and it was also the first time that a regional TV station surpassed CCTV in terms of overall ratings as well.
The ability to reach a wider and younger audience has made Hunan TV the favorite for brands such as P&G, Unilever, Coca Cola, NOKIA, China Mobile, China Telecom, and many more. Today, Hunan TV is still considered to be a media powerhouse and is considered a favorite for brands to market their products on the station.
Playing the Celebrity Card
Hunan Satellite TV has been widely recognized as a star-making platform. From Super Girl and Super Boy presenters to several other TV hosts, the TV station has turned many faces into big celebrities across China. From Olympic championship winners to celebrities and famous film directors, Hunan TV has increased its brand awareness by inviting celebrities to interact with its massive audience.
Exploiting the Success of Pre-Existing Formats
Another reason for Hunan Satellite TV’s success is its savvy use of pre-existing format that have proven success in other markets. By using proven concepts, it saves on R&D cost and eliminates risks of new program development, a significant shortcut to maximizing its audience, and a cost-effective way to operate.
From Happy Camp (an adaptation of Taiwan’s “Super Sunday”), to Super Girl (an adaptation of the UK’s Pop Idol series), to Ugly Wudi (an adaptation the Colombian soap-opera Betty la Fea), Hunan TV has greatly entertained a huge Chinese audience while continuing to grow its market share in China.
Conclusion
Chinese TV stations can take a page from the Hunan TV playbook, and understand that TV is nothing more than entertainment.
It is no wonder why other Chinese TV stations often copy show formats once adapted by Hunan TV – then again, it is often said ‘Imitation is the best form of Flattery’. Whatever the case might be, Hunan TV continues to innovate and push ahead in front of everyone else. With recent partnerships with Shanda and ITV, Hunan TV will continue to lead this increasingly fragmented TV market.
Gordon Chu is the VP of Business Development at METAN Development Group. For comments/questions, email gchu@metanmedia.com.
