Murdoch's Chinese complex

Absrtact: In the memory of AdChina, chief executive of Easy Media, Murdoch has been thinking about News Corp's foray into the Chinese media market. All the previous efforts failed, but he never gave up his efforts to enter the Chinese market.

In the memory of AdChina, chief executive of Easy Media, Murdoch has been thinking about News Corp's foray into the Chinese media market. All the previous efforts failed, but he never gave up his efforts to enter the Chinese market.

News Corp was involved in the second round of AdChina's 30 million dollar financing. July 15, Easy media set up the Sino-US Digital Media Summit supported by News Corp, Murdoch's wife Wendi Deng and other U.S. digital media giants will meet with the domestic digital media leaders in Shanghai, docking China's new media market opportunities.

"In several exchanges with Mr Murdoch, I have expressed the view that he is a successful entrepreneur." AdChina told reporters that Murdoch is very important to the Chinese market, hoping to live in the huge Chinese market breakthrough.

Murdoch's Chinese complex

Murdoch's life from the local media in Australia to enter the United Kingdom, control the mainstream media, and then into the United States, News Corp's Fox has become one of the four major U.S. radio and television news Network, the creation of its own global media empire.

Before, Murdoch entered the strategic stronghold of the Chinese market in Hong Kong, through the StarTV in Guangdong's cover to exchange the central 9 sets through the Fox News Network in the United States landing, and control Phoenix satellite TV 38% of the stake. News Corp has failed to invest in Qinghai TV and Chinabyte in the mainland market.

News Corp's approach to the Chinese market remains at the heart of Hong Kong, with its STARTV covering the Chinese market, or by directly controlling the traditional media platform in the mainland, but these two models have not been successful. Since then, Murdoch's interest in the new media business, turned to enter the digital media market in China, the role also from the platform controller to media Resource integrator.

AdChina in 2007, when he was pursuing an MBA at MIT, he contacted ebay's colleagues to start a business, and raised the first angel investment of $1.2 million to 10 investors to develop a technology platform for easy media in Silicon Valley, USA. 2008, easy media access to the Jinsha River venture capital and the first round of the original investors 10 million U.S. dollars of financing.

In 2009, News Corp was involved in the second round of the 3000 dollar financing scheme for easy media, and the business model of easy media was to buy and sell ads to advertisers by packing up the stock advertising resources of Internet media, then sorting and customizing the matching, and selecting the Internet users according to the customer's requirements.

"Murdoch saw the market opportunities for the integration of new media in China, also very interested in our business model, Murdoch had hoped that the media will become a part of News Corp, but we did not agree, easy media or we are independent of the cause, we value the News group's strong global advertising customer resources. "AdChina said.

News Corp has begun to layout the digital media market in China, through participating in VC and PE and other investment institutions in the media market in the upstream and downstream strategic layout. One of the biggest moves by News Corp in 2010 was the transfer of 20% per cent of Phoenix TV to China, with the exchange of News Corp Entertainment and information entering digital media through China Mobile. China Mobile's expansion of mobile TV and new media markets requires a strong content provider, and Mr Murdoch has seized on the opportunity to seize the future of China's digital media market.

New media investment in cold external heat

Zhu Guo, assistant director of Xinhua News agency, has been following the study of foreign investment in the new media market. He told reporters that 2009, China's internet users have more than 300 million people, become the world's first Internet user country, the rural market growth is still doubling every year, the Internet from the initial information dissemination and entertainment consumption began to business services, the 2007 total E-commerce transactions have exceeded 2 trillion. Of the 50 Chinese websites with the largest number of visits in China, 90% of the sites have been controlled by foreign capital, and the leading enterprises in the fields of automobile, health, real estate, it communications, hotel tourism, talent recruitment, e-commerce, financial securities, marriage and social networking and video sites are all controlled by foreign capital.

"At present, foreign capital access to the new media market in China, mainly through industrial and financial investment, in China happy enclosure, the upstream and downstream layout." "Zhu Guo-Saint told reporters," compared with the enthusiasm of foreign investment, domestic capital for the new media, such as light assets are very cold. ”

According to the reporter understand, Xinhua and the People's Network and other domestic mainstream news website officially launched this year, but the Chinese oil and other large central enterprises to invest in new media market has been hesitant, in the wait-and-see state, Xinhua and the net introduced state-owned capital as a strategic investor is actually a snub, The corporate governance of these two websites has not been in line with the marketization mechanism.

Both the traditional media and the new media sector has been a lack of funds, which gives foreign investment and VCs to provide opportunities, many new media enterprises rely on foreign capital and venture capital rapid development and expansion, to achieve the overseas listing, earning huge profits.

"China lacks real angel investment, and most venture capital should be called the wind direction investment, actually is the financial investment." AdChina said, "Some venture is a vampire, control of the management team is very terrible, not all the money can be used." ”

"The domestic most successful Alibaba is a typical case, it is by Yahoo and soft silver and other foreign capital control." China's new media market lacks innovation, but entrepreneurial capital. "Zhu Guo-Saint said.