Discord at Voice of China

Source: China Real Time (1/29/16)
Please Don’t Stop the Music: Discord at ‘Voice of China’ over ‘Sky High’ Fees
By Lillian Lin

Actors perform during the final round of “The Voice of China” in Shanghai September 30, 2012. Reuters

The Chinese production house behind the hit TV show “The Voice of China” raised the curtain on a dramatic reality show off the screen this week by accusing its Dutch partner – world-renowned Talpa Media – of trying to extract hundreds of millions of yuan in licensing fees.

Shanghai Canxing Culture & Broadcast Co., a leading Chinese TV producer, said in a statement posted on social media that the Netherlands-based Talpa, which owns the rights to “The Voice,” had terminated contract unilaterally after demanding that the company pay a “sky-high” fee.

The accusation, which Talpa has denied, comes after the Dutch company last week sought an injunction in Hong Kong to ban Star China Media Limited, Canxing’s parent company, from producing and broadcasting the next season of “The Voice of China,” which is expected to debut this summer.

Talpa said in a statement to China Real Time on Thursday night that it “strongly rejects any suggestion or allegation that the company would negotiate contracts in China any differently from those in any other markets around the world.” Shows like “The Voice” have been licensed in 180 markets, according to Talpa.

Canxing is the leading producer of all four seasons of the Chinese adaption of “The Voice.” The singing competition show was among the highest-rated TV variety programs in China last year, according to Nielsen-CCdata, a Beijing-based data company. The Shanghai-based production house is also behind a slate of the country’s most-loved variety shows, including some other adaptions like the “Got Talent” franchise.

Canxing said the Dutch company demanded fees that were “more than hundreds of times” its initial price four years ago, when it paid more than 2 million yuan ($300,000) for licensing “The Voice.” It also accused Talpa of seeking to ignite a bidding war among Chinese companies in order to secure an “unprecedentedly high” license fee.

In its statement, the Dutch company said the contract it had with Star China to produce and broadcast “The Voice of China” was formally terminated earlier this year. It signed a formal agreement on Thursday with Zhejiang Tangde (Talent International), another TV production company, to partner in developing and producing the upcoming seasons 5 through 8 of “The Voice of China”, along with more than 200 other variety TV shows to which Talpa owns the copyright.

Tangde agreed to pay $60 million, which will allow it to produce and air the next four seasons of “The Voice of China” over the next five years, a spokesperson said.

But, like any good reality show, the story doesn’t end there – and things could get even messier.

Canxing maintains that it holds the right to use the Chinese name of “The Voice of China” for TV shows, together with Zhejiang Satellite Channel, the provincial broadcaster which airs the singing show in mainland China. The company also said it will continue to produce “The Voice of China” based on “original production and independent R&D,” if communication with Talpa fails.

It appears to be making good on that pledge: earlier Friday, Canxing announced that it had already confirmed the lineup of judges for the show’s upcoming season.

Talpa, meanwhile, said it “is vigorously taking all legal steps to enforce and protect its rights from further unauthorized use.”

In recent years, the commercial success of “The Voice of China” has propelled Chinese TV show producers, from traditional broadcasters to video sites, to pounce on well-established foreign TV show formats, splashing out big dollars on the recipe for making high-rated shows.

The foreign variety show craze even drew attention in 2013 from the country’s media regulator, which has limited the number and airtime of shows based on foreign formats.

Industry people said that disputes over TV show licensing rights between local producers and foreign license owners are not rare. “Chinese commercial conduct is often very brutal,” said Zhao Yunyun, a Beijing-based veteran entertainment lawyer. “It is hard for people in the local showbiz industry to play by rules.”

“It’s been so hard to finally build some respect from Chinese buyers for the TV show format,” said Peng Kan, R&D director of Legend Media, a Beijing-based media company. If Canxing’s accusation is true, Mr. Peng said, “now the sky-high price shown might scare them away.”

Many on China’s Internet showed their support for Canxing. “Now that (Canxing) has finally made a successful show, it’s deprived of the rights, which are sold to a company that has never made a variety show before,” said one user on China’s Weibo microblogging service. “Such a sad story.”

“I heard the Dutch people are bullying us because we are unable to be innovative,”wrote another. “How about we save that money to develop a new format so as not to be controlled by others?”

–Lilian Lin. Follow her on Twitter @LilianLinyigu.

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