As online video platforms put better, more diverse programming
online, TV content faces more restrictions -- Chinese regulators
recently cut the number of popular singing competitions allowed on
television and asked remaining shows to tone down the glamour and
glitz, part of an austerity push.
There's a quota on foreign movies in theaters too, to
Hollywood's chagrin – Beijing only permits 34 to be screened
each year.
Online TV is a much freer sector. "House of Cards" airs
apparently uncensored despite its plotlines about China -- and its
twisted tales of political intrigue are popular among the ranks of
China's Communist officials, according to state news service
Xinhua.
Watching foreign shows "connects people to what's outside the
Great Wall," said Ker Loon Ang, digital director for Starcom MediaVest Group in Shanghai. "TV
culture is usually depicting things happening now, so Chinese
audiences feel they know more about Western culture after watching
them. For them, it's as much about information as about
entertainment."
Those consumers also happen to be attractive to brands: They're
young and well-educated, with disposable income.
Youku says about 60% of its viewers of U.S. dramas have a 4-year
university degree or more. Their average income is $1,315 a month,
higher than other viewers', and they typically work in fields like
finance, information technology, media and advertising.
They're big sharers on social media, too. One young employee of
Wieden & Kennedy in Shanghai used mobile
social app WeChat to send friends a still-life snapshot
of "Sherlock" on her computer, a glass of whisky and a bag of
Ghirardelli chocolates -- treats for a winter holiday
afternoon.
("Sherlock" debuted on Youku just two hours after it did in
Britain, and well before U.S. airtime – that's a tactic to
discourage pirates.)
Youku started buying rights for U.S. shows in 2010, and
viewership numbers ballooned last year. The company doubled its
investment in U.S. dramas in 2013 compared to 2012, said Jean Shao,
Youku Tudou Inc.'s director of international
communications. Market leader Youku Tudou, the product of a merger
between two big video platforms, has predicted it will turn
profitable when fourth-quarter 2013 results are announced.
Advertisers can target their buy to programs popular with women
or men, or they can buy ads on just one show. They can purchase
banners or commercial time. And they can get specific – a
company with an upscale product might target their buy to Shanghai
and Beijing viewers using mobile devices such as iPads.
Brands are narrowing in on shows whose viewers fit their
campaigns. This summer, computer maker Lenovo ran an ad featuring a
well-known magician playing with its Yoga tablet, targeting it to
the mostly young male viewers of sci-fi show "Under the Dome" on
Youku.
A study showed 96.5% of viewers recalled the product, a result
2.5 times better than a control brand, Ms. Shao said.
In general, watching a TV show online in China is a more
user-friendly experience than watching one on, say, Hulu. Commercials mostly air
before or after programs, not during them. Binge-watching is easy,
too – anyone who hasn't seen "Breaking Bad" can find all five
seasons in the same place.
But there's disappointing news for Americans who want to cut out
Netflix by watching "House of Cards" on China's Sohu. Unless you're
tricky enough to set up a virtual private network, you'll get a
message saying the video can't be viewed outside mainland
China.