China's plan to start 10 channels of paid television (pay TV) programmes via digital signals by the end of this year will not only stimulate reform in the State-dominated sector, but also open an enormous market that urgently need overseas TV programmes, insiders said.

According to the State Administration of Radio Film and Television, an international radio and television programme exhibition will be held in August to load overseas TV programmes on the paid channels.

Zhang Haitao, vice minister of the administration, said late last month that a development plan for pay-TV channels has been mapped out and a set of regulations and policies on the "new growth point" of the sector are being drafted.

The number of pay-TV channels is expected to be between 50 and 80; with about 30 million estimated subscribers, according to Zhang.

He also said that all the coastal cities and capital cities of provinces in Northwest China will have face a programme shortage.

According to Li Xiaoming, vice president of CCTV, total TV broadcast time in 2001 was more than 9.5 million hours; however, programmes produced in that year were only about 2 million hours, which means that many TV programmes were being shown simultaneously on different channels and repeated on some channels.

The programme shortage will gravely limit the growth of the sector if it is not addressed, said Li.

Despite importing programmes from overseas TV stations and companies, the Hunan Radio and Television Group is to establish a subsidiary to produce programmes for the paid channels.

In addition to the shortage, the ban on showing commercial advertisement will be another challenge faced by the paid channels.

According to Zhang, the regulations being drafted may only allow paid channels to show self-promotion or public service advertisements.

Therefore, content riveting enough to attract eyeballs will be the sole source of making money.

However, CCTV is fully confident of its share of the pie, saying that the first 10 paid channels will belong to it. "A channel on teleplay series will be the first one,"Li said. "Sports, stock market information and movie channels will be launched soon after."

Li also confirmed that CCTV has started negotiations with provincial TV stations on plans for the paid channels.

TV stations at the provincial level can also apply to air paid channels, said Tian Jinyi, anther high-ranking official of the administration.

"But they are supposed to co-operate CCTV at the present stage. The development of the new business should be led by the administration," Tian said.