News Corporation's onslaught on the Chinese market is set to kick off in the next few weeks with the launch of its cable channel Xingkong Weishi -- or Star Satellite TV -- in Guangdong.
The agreement, which in return requires News Corp to carry an English version of state broadcaster China Central Television on its cable systems in Los Angeles and San Francisco, follows the Chinese government's decision last year to allow three foreign-owned media channels to be distributed via cable in China.
The channel is facing competition from AOL Time Warner-owned China Entertainment Television -- which launched last week -- and Hong-Kong-based Phoenix Satellite TV, which is 38% owned by News Corp.
News Corp is relying on the Chinese version of US Friends, called Joyful Youth, to help attract viewers to the channel.
However, News Corp and AOL Time Warner are dependent on the Chinese government to allow them to extend their reach across the rest of China, as access to the media is believed to be crucial to maintain social stability.
Potentially this would give News Corp and its rivals access to China's 100m homes with cable TV, and the advertising revenues this would generate.
News Corp is thought to be looking ahead to gaining access to a wider Chinese audience as Xingkong is a largely Mandarin-language channel, while Guangdong is a mainly Cantonese-speaking region.
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