Since January 1995, the Government Information Office has encouraged cooperation between the government and private sector to develop the ROC media industry. The plan includes both the electronic and print media to establish a framework for a comprehensive media system. The first stage of the plan stressed the development of the motion picture and television industries; the second stage, which began in 1998, stresses the production of Chinese-language media, including print media.

 The goals of the plan are as follows:

• Creating a more liberalized, diversified, and international environment for Taiwan's media industry: By adjusting the industry's structure and management philosophy, and implementing an open policy, the ROC will be able to meet global media trends.
• Further developing Taiwan into a production and distribution center for Chinese-language news, motion pictures, television programs, and advertising: Establishing an integrated system of filming, production, and post-production work will raise production capabilities and promote the distribution of high-quality Chinese-language film and television programming.
• Establishing a comprehensive media system which combines the print and electronic media: Print media will also receive awards and financial support, in order to encourage domestic media businesses to develop new technology and compete in high-end markets. These efforts will allow the industry to rise above its current role as a producer and marketer and take on a new role as an integrator of international media.

 

Implementation of the media center plan focuses on the following points:

• Laws and regulations related to broadcasting are being revised, import tariffs are being reduced on specialized motion picture and television equipment, tax incentives and preferential measures are being formulated, assistance is being provided for the development and training of professional talent, local competitiveness is being encouraged, and media industry exchanges are being promoted between the two sides of the Taiwan Strait.
• Efforts are under way to plan and construct several high-tech media parks, which are to be commerce-oriented and financed by the private sector to serve as specialized areas for the production of films, television programs, and television commercials.

 

Major Results of the First Stage Plans (1995 to October 2000):
 

Opening to new media

Construction permits have already been issued to 156 cable system operators, and of these 57 have received licenses for nationwide operation, 11 are still under construction, and 89 have had their construction permits revoked. An additional 115 radio broadcasters have been approved for operation in eight batches, while another 72 frequencies will soon be released to the private sector. A new over-the-air television station has begun operation, while four domestic and three foreign direct satellite broadcasting service operators, 55 domestic satellite broadcasting program suppliers (covering 87 channels), and 15 foreign satellite broadcasting program suppliers (covering 37 channels) have been authorized to offer services in Taiwan.

 

Improving legislation:

The Publication Law was abolished on January 25, 1999, giving the publication industry more opportunities to develop and reinforcing democratic freedoms in Taiwan. The Satellite Broadcasting Law became effective on February 3, 1999.

A foreign satellite broadcast business that engages in direct-broadcast service operations or program supply operations is required to set up a branch office or have an agent in the ROC and obtain permission from the government authorities. The operation of satellite broadcast TV is open to a moderate degree of foreign investment. The Cable Radio and Cable Television Law was revised and promulgated on February 3, 1999. This law removed restrictions on the simultaneous operation of cable TV and telecommunications businesses to allow cable television operators to handle a number of telecommunication services and to allow foreign investors increased opportunities in the operation of cable television in the ROC. The new law also protects subscribers' rights and regulates the contents of contracts between system operators and subscribers, thus safeguarding the rights of consumers.

If the Broadcast Radio and Television Law, currently under consideration by the Legislative Yuan, is passed, television stations will be able to publicly list their shares to prevent over-concentration of ownership. To simplify customs procedures, imported and exported publications will be rapidly checked at customs in the same manner as ordinary articles. On April 1, 1998, enforcement of the Administration and Assistance Guidelines for the Import and Export of Publications was suspended. Numerical restrictions on hiring foreign nationals have been eliminated from the Permit and Management Regulations on Mass Media Employment of Foreign Nationals. The Regulations Governing Television Program Classification were announced on December 31, 1999, and enacted the following day.

Regulations on the Encoded Transmission of Programs of the Restricted Category took effect on July 1, 2000. Prior to that, the GIO had notified the related operators to adjust their program production and broadcasts as soon as possible and to complete related measures on encoded systems to meet the related requirements in the Regulations Governing Television Program Classification.

 

Implementing tax breaks

To qualify media enterprises for substantial assistance and incentives and raise industry competitiveness, the Government Information Office has coordinated with related government agencies and ministries, such as the Ministry of Finance, to expand the Statutes for the Promotion of Industrial Upgrading. The Regulations Governing Incentives for Investments in Facilities and Technology by Private Motion Picture and Television Enterprises, in accordance with Article 6 of the Statutes, offers a 5 to 20 percent business tax break to motion picture businesses that invest over NT$600,000 (US$19,000) in facilities and technology related to automation, pollution control, or recycling.

Film and TV businesses that invest in research and development, training industry professionals, or international image promotion are allowed a 5 to 20 percent corporate income tax deduction. In accordance with Article 8 of the Statutes, the GIO has already promulgated the Criteria for Defining Motion Picture and Television Projects as Major Investments, so major film and television investment projects can qualify for a five-year business tax holiday or income tax breaks.

 

Reducing import tariffs on specialized media equipment

One important step in enhancing the competitiveness of the media industry is reducing business costs. Duty-free imports of media equipment are essential if Taiwan's media industry is to become liberalized and internationalized. Beginning in March 1996, while the law was still under revision, the GIO coordinated with the Ministry of Finance to flexibly reduce tariff rates on 21 selected items of professional equipment used in film and television program production. Since the Customs Import Tax Rules were revised on June 17, 1998, film and television businesses have been entitled to tariff exemptions for specialized media equipment, thus helping to raise the competitiveness of the media industry.

 

Supplying government financial assistance

Media enterprises are now eligible to receive allocations from special funds set up for pioneering small and medium-sized enterprises. To promote the establishment of high-tech media parks, the GIO has coordinated related government funds and established guidelines for the provision of up to NT$5 billion (US$158 million) in preferential loans to businesses participating in these projects. High-tech media parks will enable Taiwan's media enterprises to capture a share of future motion picture, television programming, and advertising markets at all levels of production.

 

Enhancing cooperation and mutual benefits between the two sides of the Taiwan Strait

In order to relax restrictions on cooperation with the media industries of Hong Kong, Macau, and the Chinese mainland, the government has revised the Regulations Governing Reporting, Filming and Program Production on the Chinese Mainland by Media Enterprises in the Taiwan Area, as well as the Procedures for Permitting Publications, Motion Pictures, Videotapes, and Radio and Television Programs from the Mainland Area to be Imported, Released, or Produced in the Taiwan Area.

In addition, the Procedures for Permitting Motion Pictures, Videotapes, and Radio and Television Programs from Hong Kong and Macau to be Imported, Released, or Produced in the Taiwan Area have been formulated to relax restrictions on the joint cross-strait production of films and on the release of mainland films and television programs. Furthermore, to attract media talent from Hong Kong and Macau to work in Taiwan, the government has established the Procedures for Permitting Residents of Hong Kong and Macau to Enter, and Reside in the Taiwan Area.

 

Developing talent and training personnel

The success of the Asia-Pacific Media Center depends on both the quantity and quality of media talent. In order to promote the cultivation of industry talent, the GIO has asked the Broadcasting Development Fund and related departments at universities, colleges and institutes to offer training courses. At the GIO's request, the Taishan Vocational Training Center, under the Council of Labor Affairs, has designed courses to nurture talent for the audiovisual media.

In addition, the GIO has commissioned several research institutes and mass media scholars to conduct five research projects: "Research on the Supply and Demand of Media Talent in the ROC," "Survey Analysis of the Media Industry and Its Output," "Alignment of Motion Picture and Television Production and Distribution with Information and Communications Technologies," "Future Prospects for the Chinese-Language Film and Television Industry Viewed from the Development of Film and Television in Taiwan, the Chinese Mainland, and Hong Kong, as well as the Operations of Multinational Media Groups," and "Analysis of the Possibility of Bringing Print Media into the Asia-Pacific Media Center." The GIO will use this research as a reference when establishing plans for developing industry talent and other purposes.

 

Promoting the planning and construction of high-tech media parks

Another important component of the Asia-Pacific Media Center Plan is the construction of commercially-oriented, privately-capitalized high-tech media parks to handle the production of films, television programs, and TV commercials. Beginning in June 1995, the GIO publicly soliticited proposals twice for these parks and later approved proposals from eight media enterprises. The media parks will include production and post-production centers for film, television, and multimedia programs; satellite uplink and downlink connections and signal transmission centers; and theme parks.

Currently, the GIO is working with the Ministry of the Interior's Construction and Planning Administration to set up a one-stop-service window, simplify procedures, and reduce the time needed for project review and approval. In addition, the GIO is working with the Ministry of the Interior and the Council for Economic Planning and Development to formulate Regulations for Examining Special Zones for the Media Industry in Urban Planning, and a Reference Handbook on Changing the Land Use Title of Non-Urban Land. These materials will enable developers to better understand rezoning regulations.

Era and Kuo Bao are considered favorably in terms of efficiency, and both have filed their respective cases for change in land title. The Era Media Park, which is regarded as a major investment plan by the Council for Economic Planning and Development, completed its land title change and started construction in March 2000.

Seeking foreign media business investment in Taiwan

Besides planning and adopting a series of measures to assist and guide development of the domestic media industry, the ROC government is also encouraging multinational media groups to make Taiwan their headquarters or major base of operations in the Asia-Pacific region. Attracting capital, technology, and talent is an important goal of the media center. The success of this policy can be seen in the number of such foreign media organizations as Reuters, MTV, the Asian Wall Street Journal, and the International Herald Tribune, which now have a major presence in Taiwan.

In addition, international recording companies such as Universal Studios, EMI, BMG, Warner, Sony, AVEX (Japan), and internationally reputable book stores, including Kadokawa from Japan and FNAC from France, have also established major branch offices in Taiwan. Moreover, domestic and foreign magazine groups have established cooperation ventures to publish Chinese editions of foreign magazines in Taiwan or in other countries.

Major Results of the Second Stage Plans (since September 1999):
 

Continuing the relaxation of restrictions

         The government is examining ways to relax restrictions on cross-media operations, and the

        classification system of TV programs.
 

• Plans are underway to simplify the export procedures of videotapes and laser discs in order to speed up customs clearance. Beginning in January 2001, the Intellectual Property Office, Ministry of Economic Affairs (MOEA), will review the export procedures to verify video program copyrights, strengthen the review of copyright certification, and protect the intellectual property right of audiovisual works.
• Revision of the Motion Picture Law is under study to include a proposal transferring review responsibilities to the private sector, softening the conditions for various permits in the film industry, abolishing the system of permits for actors and actresses, and relaxing the rules on motion picture censorship so as to expand room for creativity.
• Guidance will be given to the Chinese Publication Development Fund to enhance the development of the publishing industry.

 

Integration of digital technology to establish a new structure for radio and TV broadcasting industries

The government continues to promote fairness and reason in the broadcasting industry and provide guidance for the domestic program production and export. Other measures include:

 

• Promotion of a common transmitter tower to improve receiving, transmitting, and exchanging satellite TV signals and the transmission of traffic updates for rebroadcasters;
• Accelerating the testing of digital television in order to begin operations at an earlier date;
• Accepting applications for the ninth phase of FM radio broadcasting operations;
• Initiating an experimental broadcasting plan by the Government Information Office and the Ministry of Transportation and Communications that allows sub-carriers to share frequency range and a trial plan for digital audio broadcasts, with the assistance of qualified FM channel operators;
• Establishing a rating system for television programs and providing guidance for the development of satellite TV broadcasting.

 

Providing guidance and encouragement to the development of the film industry

Measures include: Studies to revise the funding measures of the Government Information Office's Guidance Fund for Domestically Produced Films; review of the Golden Horse Awards for any shortcomings; providing guidance to cinemas that specialize in screening domestic films; and conducting viewer surveys on domestic films. The government also actively supports, encourages, and provides guidance for investment in Taiwan film production through the film production guidance fund and assist in the establishment of high-tech post-production centers by the film industry. These efforts will help expand the scale and raise the standards of domestic film production.

 

Re-examining plans for training media personnel

In order to develop new talent in the media industry, capital from the Broadcasting Development Fund and the Motion Picture Fund is provided to Taiwan's universities, colleges, and schools for on-the-job training courses and raising professional standards. The government is also encouraging and assisting vocational schools, colleges, and universities to establish motion picture, television, and audiovisual media departments. University courses in motion pictures, television, and multimedia will be improved, and multimedia materials and application software will be strengthened. A budget of NT$3.2 million (US$101,400) will be appropriated at the end of 2000 to enhance media development in program production and raise the quality of media personnel. According to the "Implementation Policies on Commissioned Cultivation and Training of Media Professionals" promulgated by the Government Information Office in 1998, professional institutes are commissioned to foster media talent, and the private sector is encouraged to increase training. The goal is to raise both the quantity and quality of media personnel.

 

Strengthening cross-strait exchange activities

Interactions between people on both sides of the Taiwan Strait and the continued opening of the Chinese mainland market have created many new business opportunities. In response to these developments, the media plan includes the following: Entrusting the private sector to handle visits by members of the media and academia from both sides of the strait; providing subsidies to the media industry to organize exhibitions or participate in exchange activities on the Chinese mainland; entrusting the media industry or academic institutions to conduct research on supply, demand, and future prospects of the film and television markets on the Chinese mainland; and providing guidance to the media industry to open the Chinese mainland market for the production and release of films and television programs.

 

Promoting the establishment of high-tech media parks

The government has been actively assisting selected businesses in establishing high-tech media parks by preparing development plans, installing production equipment, establishing telecommunications and other public utilities, and accelerating the rezoning review process. Operaters will be helped to obtain development rights and improve adjacent and connecting public transportation facilities.

In addition, the government is assisting media park operators in attracting domestic and foreign media companies to establish offices in the parks, while simultaneously enhancing technological cooperation. Close attention is given to the current progress of media companies. These efforts assist in obtaining loans, establishing media parks at an earlier date, and eliminating investment obstacles.

Assisting the print media

Originally, media center planning emphasized the film and television industry; however, since 1998, more assistance has been given to the print media (news agencies, newspapers, magazines, books, and audio publications) to develop a more comprehensive media system.

Since the abolition of the Emergency Decree, the lifting of restrictions on newspaper licensing, and the repeal of the Publication Law, greater freedom of speech has allowed the publishing industry to flourish. International newspaper groups came to Taiwan seeking business opportunities and potential markets, reflecting the globalization trend in the magazine and audio publication industry. To build Taiwan into a Chinese-language publication center in the Asia-Pacific region, the government hopes not only to attract foreign investment, but also increase the international competitiveness of the domestic media. Specific plans for development include:

 

• Providing guidance to the publishing industry and improving its development environment by strengthening the competitiveness of operations: Coordinating with other related organizations to assist the publishing industry in eliminating obstacles that hinder development;
• Revising measures for awards and financial assistance to the publishing industry to meet the goals of the Asia-Pacific publishing center;
• Providing guidance to the audio publishing industry in the application of the International Standard Recording Code (ISRC);
• Assisting the publishing industry to attain preferential tax treatment similar to that accorded to the film and television industry;
• Holding international publishing events to raise Taiwan's status in the international publishing industry;
• Consulting with the Mainland Affairs Council, Executive Yuan, to formulate a progressive cross-strait policy for the publishing industry;
• Discussing the reduction of import taxes on ink and paper with related government departments;
• Emphasizing the Taipei International Book Exhibition's goal of establishing Taiwan as the marketing center for Chinese-language publications and the copyright transaction center of Asia;
• Meeting the needs of print media parks by assisting in development planning and building stronger horizontal and vertical integration between publishing and other industries.

 

VI. Conclusion

    Of the three major Chinese-language film and television markets in the Asia-Pacific region, Taiwan produced 47 percent (US$1.3 billion), while Hong Kong accounted for 28 percent (US$800 million), and the Chinese mainland was responsible for 25 percent (US$700 million). In view of Taiwan's present leading position, the current opportunities, and the potential of the market, establishing Taiwan as a media center perfectly matches the needs of the domestic media industry.

    The ROC has a solid foundation in the information and communications industries, especially in the development of information software and hardware, and is quick to adopt the most advanced communications technologies. This foundation makes Taiwan highly competitive in the Asia-Pacific region. With the further integration of the information and communications industries, the media center plan emphasizes the island's strengths to place the ROC in a strong position.

    To develop the ROC as a media center in the Asia-Pacific region, the government has devised a plan that extends well into the next century. In addition to long-term economic benefits, the development of Taiwan as a regional media center is also expected to expand the international influence of the ROC's media, especially in the Asia-Pacific region. In the new century, "Made in Taiwan" will extend to the media, thus opening up new opportunities for the media industry in Taiwan.
 
 

Appendix I. Incentive measures for the Asia-Pacific Media Center Plan

• Facilities or special vehicles used exclusively for film and TV production will be exempt from import taxes.

 
• Film and TV businesses that invest NT$600,000 (US$19,000) or more in facilities or technology related to automation, recycling and pollution control will be granted corporate income tax deductions of 5 to 20 percent.

 
• Film and TV businesses that invest at least NT$2 million (US$63,400), or 2 percent or more of net revenue in research and development are entitled to a 15 percent deduction in corporate income taxes.

 
• Film and TV businesses that invest NT$600,000 (US$19,000) in promoting talent and training personnel are entitled to a 15 percent deduction in corporate income taxes.

 
• Film and TV businesses that invest NT$3 million (US$95,000) or more in establishing an international image are entitled to a corporate income tax deduction of 10 percent.

 
• Film and TV businesses that meet the Criteria for Defining Motion Picture as Major Investments and Television Projects are entitled to a five-year corporate income tax holiday or deductions in personal income taxes.

 
• A loan of NT$5 billion (US$158 million) for the construction of a media park will be provided to film and TV enterprises at an interest rate set at the same floating rate for one-year timed savings deposits maintained by the Directorate General of Postal Remittances and Savings Bank under the Ministry of Transportation and Communications.

Appendix II. Media Market Statistics

 

Media/Year		1995	2000 (September)
Radio and TV	Over-the-air TV stations	3	5
	Cable TV stations	0	68
	Cable program transmission systems	640	25*
	Radio stations	33	138
	Program suppliers	18,300	11,431
	Direct satellite TV broadcasting businesses	0	7
	Satellite TV broadcasting program suppliers	0	70
Publishing	Newspapers	287	445
	Magazines	5,007	6,641
	Publishers	4,439	7,093
	Audio publishing companies	1,202	2,355
	TIBE** participants	---	885 (8th TIBE)
	TIBE participating countries	---	45 (8th TIBE)
	TIBE participating foreign publishers	---	490 (8th TIBE)
	Copyright transactions at TIBE	---	approx. 2,500 (8th TIBE)
	Publishers participating in foreign book exhibitions	---	320 (8th TIBE)
	Participated book exhibitions (countries)	7	9
	Foreign publishers with offices in the ROC	9	18
Films	Films participating foreign film festivals	36	906  (Jan. 1995-Sept. 2000)
	Films awarded foreign prizes	11	204 (Jan. 1995-Sept. 2000)
	Filmmakers attending foreign film festivals	11	190 (Jan. 1995-Sept. 2000)
	Attended film festivals (countries)	18	189 (Jan. 1995-Sept. 2000)

NOTE:
*: Following the passage of the Cable Radio and Cable Television Law, the cable systems have gradually been merged due to restriction on the number of cable TV systems in one particular area. Therefore, the number of cable broadcasting systems has decreased.
**: Taipei International Book Exhibition