China Shuts down Major P2P Servcies

Last brilliant idea from Chinese government regarding Internet development was the Green Dam filter software, and this time is the massive shutdown of P2P services based file share websites, such as VeryCD.com and BTChina. The officials who issue the notification are the infamously well-known SARFT and the Ministry of Industry and Information Technology (MIIT). According to them, these websites have to be shut down because they don’t own the “Information Network Broadcast Audio Visual Programming Permission Certificate".

• From the BTChina website: (BTCHINA was notified by the State Administration of Radio, Film and Television (SARFT) that because of the absence of audio-visual broadcasting license, Ministry of Industry and Information Technology of PRC is to delete our record number and shut down the site. As for my personal safety, once again to prove rumors on the internet are untrustworthy, especially the news is the most unreliable, translated by Chinahush)

Initially, I doubt that it was the pressure from copyright holders oversea so the government has to take some action and these small websites become targets due to their huge popularity like the Pirate Bay case. Yet, after reading SARFT's regulation and blogger analysis, I realize this is not simply because of copyright infringement and censorship, it is still the question about who control the Internet content in the coming years. The SARFT definitely want to demonstrate their authority by then end of another year challenged by growing Internet activists.

This decision reveals the conflict of interests between two government departments the SARFT and MIIT. The popularity of these video sharing websites in some way humiliates SARFT since most of them promote cultural products from other countries, and SARFT want to defend their territory and control these websites as they do in traditional media. Yet, because these websites are not authorized by them but by MIIT, so SARFT has to compete with the clout of MIIT . This time, it is SARFT’s regulation forces MIIT to withdraw those websites’ licenses. As some bloggers have noticed, SARFT and MITT’s conflicts can be traced back to the development of IPTV and mobile television, anything between the media content and information technology. Two departments have not decided the disciplines and those service providers will be suffered because of these changing regulations.

I think fundamentally it is SARFT’s fear of lose the grip of media control that drives this shut down. According to government website (Chinese), the website should be state owned or state funded in order to be eligible for the Internet program permission certificate. Chances are rare that those fans organized private P2P share websites could meet this qualification. Therefore, it becomes clear that SARFT still wants to control Internet content especially as they see the threat of growing video streaming and video sharing business. Essentially, the crackdown of P2P share websites is another attempt to against the decentralized Internet trend.

References:

1. China shuts down BitTorrent websites (ChinaHush)
2. VeryCD.com may be closed for not having a license (Danwei)
3. State Funded Business Advances and Private Owned Business Retreats: recent regulations of online content influences the future of video business (Chinese)

Made in China Campaign

Today, both LA Times and PR Weekly mentioned that Chinese government has hired western background media companies to burnish the image of Chinese government and Made in China products.

The government hired Hill& Knowlton as its PR firm three months ago and now announced DDB Communications ( of Omnicom Group) for its advertising agency. The tag line of the 30 sec ad, which debuted on CNN, is Made in China is Made with the World. LA Times analyzes that it is the government’s attempt to relieve the intense trade relationship between China and western countries.

I agree that the main objective is to recover from those negative images, such as poisonous toys, or contaminated milk powder scandals, in investors’ minds and invite them back to China. During this global economy recession, many outsourcing manufacture factories in China have closed because of less needs in global market. Also, the ad campaign at the holiday season, is sending the message to bring consumers’ confidence to made in China toys and clothes since some consumers will avoid (quite impossible to completely eliminate ) made in china labels.

Besides the message of the ad, I think it is interesting to see they choose CNN for the commercial debut. For a long time, Chinese government and its media have taunted CNN for fabricated news and manipulated editing, which have constantly dignify the image of Chinese government (even with a website anti-cnn.com ). However, the government now picks up CNN for publicity. It seems the officials finally realize that business relationship is better than hostility with western media. The government has expanded its media outlets, such as XinHua News Agency, CCTV, etc. to reach western audiences, which I think is really useless, just thinking the stereotype ( or the fact) of Chinese mainstream media. And this business relationship serves the purpose better since mainstream media will not say too much bad thing about their big advertisers.

The LA Times article ended with several cynical quotations, doubting the cost and result of the campaign. I just want to recognize it as a positive sign that the government realizes the urgency to address this issue and is trying new approaches. And, I wish it is also a sign that the government develops a liberal view toward western media. Finally, here's a peak of the commercial (I have not found it on YouTube).

Still BBS: China SNS Development Report 2009

iResearch along with China’s popular Bulletin Board System developer Comsenz (developer of Discusz!) together launched a report on 2009 China’s Social Networking Sites (SNS) development. After reading the summary of the report (Chinese), though I doubt the methodology, I think it reveals the very unique feature, one essential question that I’ve been wondering, why BBS still plays an irrevocable role in SNS in China.

The Methodology: The report takes both user survey and industry interview approach for data. For the user survey part, the company displays survey link on 45 targeted websites and 324 smaller size SNS sites from July to August in 2009, asking users to fill in the survey voluntarily, ended up with 7462 samples. From the summary part, it did not analyze who took the survey, which raises the question if it has fair amount of diverse samples to illustrate the real situation. Therefore, when the reports says over 13.8% of people spend over 8 hours on BBS sites and 11.2% of people reply more than 15 posts every day, I tend to think that those who answer the survey are more likely to be heavy BBS users. With these findings, this report defines SNS as a BBS centered platform (threaded discussions), with functions such as announcements, group discussion, networking and value-added services.

Figure 1.0 How often do you reply a post everyday? 11.2% say they reply 15 posts everyday and 12.8% say between 10-15.

The findings: As a commercial report, the research goes to discuss how to effectively use BBS for viral marketing, branding and e-commerce in China market, etc. Currently, however, most SNS websites admit that advertising is still the major revenue. It could be the reason that forces BBS centered SNS system to embrace other services, like games, virtual goods, micro-blog in order to get various revenue sources.

Figure 2.0 2008-2009 China SNS Revenue Sources


One major finding of the reports is that these BBS centered SNS have the tendency to be more social: 53.3％ users saying they are using other social networking functions of the BBS, 30% say not yet but would like to try and only 10% are indifferent to new functions.

Actually, I think BBS should not be categorized as SNS if SNS are used for sites like Facebook, Twitter or RenRen (Chinese version of Facebook among university students, literally mean everybody), Kaixin (Facebook among white collar, literally mean happy). It probably is the same share culture, but for some reason that I have not figured out, the sharing concept is different in BBS context than in SNS context. Popular BBS system like Tianya.cn or Maopu cant nor be SNS, so does smaller specific BBS sites; and Kaixin, RenRen still need the links from these sites for content.

Then goes back to the essential question in the beginning, why BBS culture is so dominant, not only in China. Is it a cultural thing? That people would like to join an organized community and set the ranks, gain reputations and exchange opinions anonymously. Or is it a technical thing that it is just easy to use? Or, it is a GFW thing that people have no other option so BBS is a relatively safe harbor for information exchange (still some unfortunate guys were caught by Internet police for their posts). If I had sorted this question, I would have write a paper about it. I think it will be an interesting study to recognize the indispensable role of BBS in China's Internet culture.

For the report: Chinese English (China Internet Watch Blog)