By TANG YUANKAI

A dazzling TV commercial in the subway.

DURING a public bidding recently held by CCTV for one of its programs, the final bid of 65.6 million yuan -- 2.3 times its base price, caused a sensation.

At a time when TV occupies a dominant position, public bidding for prime-time commercials is common. As the first ever held by CCTV for a single TV program, however, the magnitude of this bid is unprecedented.

The program, The Same Song, consists of clips of various pop singers popular at different times, plus performances of their representative works. Devised in 1999, on the brink of the new millennium, the program was calculated to provide the perfect vehicle for popular nostalgia, and in just a few years, it has become a highly productive golden goose.

From an instrument for the dissemination of propaganda TV has now evolved into a serious generator of revenue, as demonstrated by its prime-time commercial rates.

There is no doubt that TV commercials generate profit for the various manufacturers that commission them, as they would not otherwise compete for costly prime time slots. As TV commercials directly stimulate consumption, the more goods that are consumed, the more manufacturers spend on commercials, and the more TV stations earn.

There are, however, a considerable number of TV commercials that intentionally mislead viewers, working subliminally to make them believe, for example, that they lack calcium, and that they should therefore go out and buy the recommended drink or vitamin pill that contains it. Or it may be a shampoo commercial that makes the consumer believe the threat of dandruff could have an irreversibly detrimental affect on their love life.

The site of The Same Song.

In any event, Chinese people are ever more aware of the dominant role TV plays, and government policy ensures a favorable economic environment for TV stations. The profit they earn from TV commercials, via the companies that commission them, have laid a solid economic foundation for their further development. It is now plain to see that Chinese TV has entered an industrial period.

Current rapid development in China, as well as fierce domestic and international competition, means that it is imperative for the TV industry to restructure its resources around broadcasting media and transmission networks. Competition within the industry between the broadcasting and other media, such as the press, is becoming white-hot, and will continue to intensify as China's WTO entry brings international media conglomeration.

According to the State Radio, Film, and Television Administration plan, the amalgamation of cable and regular TV stations will take place in numerous provinces and cities, in order to help the Chinese TV industry gain a foothold before the onset of serious competition.

In the time leading up to this amalgamation, as TV stations function independently and develop in a comprehensive way, imbalances in the utilization of both human resources and equipment is a universal problem. Severe waste and low efficiency is not the result of market division, but of an artificial structural barrier.

Owing to a lack of government subsidies, Chinese cable television emerged through money raised by localities. Despite a wide net of distribution, cable television is not part of the national network, and cannot, therefore, expand its business scope until effective readjustment has taken place. The relevant department is currently in the process of readjusting cable television networks nationwide.

The emergence of conglomerates has changed the formerly closed and rigid structure of TV channels, and consequently the industrial functions of program manufacture, commercial management, and network transmission are conducted via the stock market. A relatively integrated industrial value chain has now begun formation, and a set of feasible ways for TV media to develop via the capital market explored.

It is obvious that industrialization has brought many changes to Chinese TV, which now has a far higher market value than the film industry. With the influence of the external environment and various accidental factors, however, as well as producers' market awareness still tending toward impulse and following current trends, the overall market level of Chinese TV is not high. More serious still, the masses are becoming dissatisfied with the general standard of TV programs. Certain media made the comment that the Chinese TV industry is a combination of advanced technology and shoddy production.

Inputs of large sums have given rise to an increase in production funds, broadcasting costs, and service charges, and also to the emergence of millionaires. The obviously low level of expertise in certain TV operatives has, however, provoked sharp public criticism. For example, there are show hosts that babble vacuous volumes, and producers that seem to plan programs on the basis of profit rather than of viewer appeal, happy to churn out hours of "trash" programs. A director has no need of insight or relevant knowledge of audience psychology when he can fill the screen with grinning, gushing would-be stars, trivia, aimless games, and tiresome talk shows.

Having witnessed the development of Chinese TV over the past 40 years, Chinese audiences are now tired of poor quality programs. We are gratified to see that there are large numbers of TV operatives with a strong sense of responsibility, and are confident that with the deepening of industrialization, they will succeed within fierce competition and create good prospects for the Chinese TV industry.