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Yu-li Liu

Chun-fa Chuang

Ping-Hung Chen

Yuntsai Chou

Ru-Shou Robert Chen

Kuo-feng Tseng

March 11, 2010

Telecom and Media Industries

� Newspaper

� Magazine

� TV

� Satellite TV (Cable TV)

� Cable Operators

� Radio

� Wireline

� Wireless

� Film

� Music

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Overview

� Newspaper: 4 major newspapers

� TV: 5 (1 PBS, 1 semi-public)

� Cable operators: 63

� Cable MSO: 3 foreign, 2 local

� Satellite channels: more than 100 channel

� Radio (national and local)

� Wireline Telecom: 4, CHT dominates the market

� Wireless Telecom: 3 big, 3 small

� ISP: Hinet (CHT) dominates DSL market

Policy and Law factors

� National Communications Commission (like the

FCC in the US) was established in 2006.

� Horizontal integration cap: one third of the

market for cable operators

� Vertical integration cap: one fourth of the market

for cable operators

� Informal concentration rule for radio (75%. 50%)

� Open up 10 rounds of radio licenses since 1993

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Policy and Law Factor--continued

� Open up fixed network licenses in 2000

� In 2003, the Legislative Yuan passed the

law and asked all the government, military

and political party shares to be withdrawn

from the electronic media (TV, cable, and

satellite TV)

Newspaper

� Lift the restrictions on newspapers in 1988

(such as printing, publishing, editions)

Abolish Publication Law

� Hong Kong’s Apple Daily came to Taiwan

in 2003

� Sensational and partisan newspaper

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� Source:

� Advertising yearbook of Taiwan, the republic

of China

� Difficulty: No ABC system

% 1996 2000 2004 2007

China Times News Group 38.7 32.2 30.2 22.6

United Daily News Group 49.4 41.0 37.4 21.2

Liberty Times News Group 6.1 19.5 29.8 32.1

Apple Daily 0.0 0.0 0.0 24.0

Independent Post News Group 3.5 1.7 0.0 0.0

The Great Daily 2.3 5.6 2.6 0.0

Total Advertising Revenues (NT mil) 20,785 18,746 16,524 13,668

Total Advertising Revenues (USD mil) 650 586 516 427

CR4 90 91 85 96

HHI 3990 3130 3203 2571

Norm 1784 1400 1601 1286

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� Source: Brain : marketing & communication

% 1985 1988 1992 1996 2000 2004 2008Business Weekly 0.0 0.0 0.0 2.7 4.0 6.0 7.9

Common Wealth 6.0 5.0 3.5 4.6 2.6 3.3 4.3

Business Today 0.0 0.0 0.0 0.0 0.0 1.0 2.4

Global Views Monthly 0.0 0.0 0.0 0.0 1.8 1.4 1.8

Wealth Magazine 0.0 2.0 2.1 2.5 1.4 0.9 1.6

Next Magazine 0.0 0.0 0.0 0.0 0.0 7.0 10.4

China Times Weekly 14.5 12.6 7.8 11.3 5.7 5.4 3.1

TVBS Weekly 0.0 0.0 0.0 0.0 3.9 2.4 1.9

VOGUE 0.0 0.0 0.0 0.0 1.5 2.5 1.8

ELLE 0.0 0.0 0.0 2.4 1.6 2.5 1.6

Marie Claire 0.0 0.0 0.0 0.0 0.0 2.2 1.3

CITTA Bella 1.4 1.6 1.4 2.2 0.0 1.5 1.0

Reader's Digest 3.6 3.8 1.5 2.5 0.0 0.0 0.0

Mee-Hwa Report 3.4 2.7 1.5 0.0 0.0 0.0 0.0

Taipei Walker 0.0 0.0 0.0 0.0 0.0 0.0 0.0

TV Guide 2.2 2.0 0.0 0.0 0.0 0.0 0.0

Families 16.5 1.9 0.0 0.0 0.0 0.0 0.0

U.S. News & World Report 0.0 3.0 0.0 0.0 0.0 0.0 0.0

ScoopWeekly 0.0 2.6 2.8 0.0 0.0 0.0 0.0

Money 0.0 0.0 1.5 2.5 0.0 0.0 0.0

China Times magazine 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Harper's Bazaar 0.0 0.0 0.0 0.0 0.0 0.0 0.0

PC week 0.0 0.0 0.0 0.0 0.0 0.0 0.0

PC home 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Carnews 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Car Magazine 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Total Advertising Revenues (NT mil) 1,125 2,100 4,360 3,987 8,264 8,313 6,723

Total Advertising Revenues (USD

mil)35 66 136 125 258 260 210

CR4 26.09 24.40 16.18 21.06 16.14 21.67 25.67

HHI 551 236 94 185 80 154 222

Noam 208 74 33 65 28 44 64

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% 2001 2002 2003 2004 2005 2006 2007

1 26.94 26.8 25.37 23.59 21.19 20.17 22.5

2nd 8.91 9.18 9.64 9.41 9.7 9.57 4.86

3rd 7.95 5.94 5.15 4.84 4.98 4.95 4.44

4th 4.38 4.18 3.79 3.77 3.77 3.9 4.21

others (115) 0.45 0.47 0.49 0.51 0.52 0.53 0.56

Total revenue

(NT million)3,542 3,440 3,510 3,658 3,526 3,478 3,036

Total revenue

(USD million)111 108 110 114 110 109 95

C4 48.2 46.1 44.0 41.6 39.6 38.6 36.0

HHI 888 855 778 683 582 538 568

Noam 397 383 348 305 260 241 254

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% 1996 2000 2004 2006SET 9.7 11 12.3 13.5

VL 9.4 6.4 12.9 12.4

GTV 0 7.8 6.8 7

Star TV 12 7.2 10.3 9.2

ET 3.6 15.9 19.6 16.7

TVBS 0 0 0 12.9

CTi 3.8 3.6 6.2 6.5

Era 30.8 15.4 15.2 5.9

Unique 0.9 1.8 2.4 3.1

Total Revenues (NT mil) 6031 17668 25381 22897Total Revenues (USD mil) 188 552 793 716

CR4 61.91 50.07 59.89 55.49

HHI 1302 780 1127 1002

Noam 460 276 399 334

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% 2001 2002 2003 2004 2005 2006 2007 2008

Eastern Multimedia

Group25.64 24.24 24.23 24.07 23.9 23.99 23.85 23.51

CNS Group 20.59 22.09 22.6 22.99 23.26 23.28 23.35 23.05

TBC 13.91 14.51 13.57 13.6 13.94 14.58 14.7 14.6

富洋集團 10.71 10.02 9.8 10.16 9.86 9.79 9.62 10.99

TINP 5.16 5.13 6.86 6.89 6.66 6.69 6.59 6.64

Others

Independent 20-2323.98 24.01 22.93 22.28 22.38 21.69 21.9 21.26

CR4 71 71 70 71 71 72 72 72

HHI 1416 1413 1425 1444 1448 1471 1466 1462

NOAM 578 577 582 589 591 600 599 597

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% 2006 2007 2008

CHT 84.9 85.7 86.2

B 5.3 3.9 2.2

C 5.1 5.2 6.3

D 4.6 5.1 5.3

Total Revenues (NT mil)104,440 102,032 99,566

Total Revenues (USD mil)3,264 3,189 3,111

HHI 7291 7419 7502

NOAM 3646 3709 3751

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% 1998 2000 2002 2004 2006 2008

CHT 53.7 30.7 34.8 35.4 34.4 34.8

TaiwanMobile 22.4 29.8 26.0 22.8 22.6 26.2

FETnet 11.1 21.1 19.3 20.3 20.3 24.6

Mobitai 3.9 3.4 2.7 2.4 2.1 0

TransAsia 3.2 5.1 5.3 5.5 3.7 0

KG Telecom 5.7 9.9 11.9 13.7 11.8 6.6

Asia Pacific

Telecom0 0 0 0 3.4 5.6

Vibo 0 0 0 0 1.8 2.2

Total Revenues (NT mil) 54,804 151,559 179,418 198,171 212,240 207,552

Total Revenues (USD mil) 1,713 4,736 5,607 6,193 6,633 6,486

CR4 93 92 92 92 89 92

HHI 3566 2413 2437 2404 2273 2583

NOAM 1456 985 995 981 804 1054 Notes: Sep. 2008 Taiwan Mobile officially merged TransAsia Telecommunications and Mobitai Communications and became the first mobile telecommunication operator to successfully complete a merger in Taiwan

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� Source:

� Taiwan Cinema Yearbook, published by

Chinese Taipei Film Archive

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% 1998 2000 2004 2007

Buena Vista 14.99 33.08 28.47 29.52

UIP 24.45 18.86 18.46 19.46

Warner 13.16 11.15 17.47 18.64

FOX 17.82 10.52 15.93 7.96

Total Revenues (NT mil) 2,987 2,559 2,585 2,716

Total Revenues (USD mil) 93 80 81 85

CR4 70.43 73.61 80.33 75.57

HHI 2,188 2382 2,097 2,257

NOAM 1094 1191 1049 1129

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% 2005 2006 2007 2008

ALFA Music 2.67 2.9 0.63 0

Avex 11.81 13.13 15.77 20.23

B`in Music 0 1.54 3.1 4.51

Forward Music 2.45 3.53 2.43 3.16

Gold Typhoon 16.84 10.75 14.17 8.75

Jingo 0.61 1.41 0.84 2.25

HiGH NoTE 1.81 0.54 1.45 1.89

HIM 2.81 3.29 4.88 2.37

LINFAIR Records 1.78 1.64 2.65 3

Rock Records 3.11 5.73 3.84 1.74

SEED 0 0.02 1.45 1.86

Sony Music 19.25 14.84 12.23 12.54

Universal Music Taiwan 18.92 15.39 15.06 15.01

Warner Music Taiwan 9.45 11.27 9.18 11.71

Total Revenues (NT mil) 3,514 2,326 2,156 1,722

Total Revenues (USD mil) 110 73 67 54

C4 66.82 54.63 57.23 59.49

HHI 1278.41 943.92 976.54 1065.56

Noam 369.06 252.27 260.99 295.53

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Conclusion

� Satellite TV—moderate concentration

� Radio—less concentration (except national radio)

� Others—high concentration

� International players enter cable TV (operators—MSO) market

� Public broadcasting group (PBS, CTS, Hakka TV, Aborigines TV)

� More multi-media ownership (Telecom, cable MSO, satellite TV groups)