Wu's five-year plan to take new media top spot

Bruno Wu, head of the Chinese media empire Sun Media, admits to meeting his "financial Waterloo" at the hands of Rupert Murdoch. Several years ago, he spent US$100 million trying to make a success of his satellite television channel, Sun TV, but couldn't knock the US tycoon's Star TV off the top spot in China.

Instead of getting mad, Wu decided to get even and, in 2004, he came up with a new five-year plan ("in China we do everything in five-year plans"). This one, he hopes, will eventually crown Sun Media as China's number one company in new media. If he cannot rule the airwaves at home, he fully intends to rule the internet instead.

Commentators in China now claim Wu, 39, is trying to set himself up as the new Murdoch. He can't help laughing at the comparison but insists: "I have a lot of respect for him. He is someone I'd look up to."

Sun Media, which owns several newspapers and magazines, made its biggest internet push in February with the launch of the "Her Village" online community. Aimed at blue-collar women, links to Her Village appear on hundreds of websites in China.

When users download the magazine-style content, they also download software, called a multimedia reader, which allows Sun Media to transmit news and videos as well as advertising campaigns. Each user can create an online account to buy the products that are advertised. "Once they download the reader, I own you," says Wu, adding that three million women have signed up to the service.

At the same time, Sun Media launched an online community for business people on the back of its financial newspaper, the China Business Post. A further two million have signed up. Wu takes great pride in the instant success of the two services. "What TV show would have captured an audience of five million?"

As he goes into battle with Murdoch again, it may help that Wu knows a bit about generals and empire building, having studied French civilisation at the University of Savoy in France and international affairs at Washington University. Of greater concern in the West than historical conquests, however, is China's efforts to obstruct the march of information.

The Chinese Government last week angered the US and European Commission when it announced restrictions on foreign news agencies operating in the country. From now on, the state-owned Xinhua must approve any foreign news agency report before it is published. Xinhua will also take a commission on the financial information provided to banks and companies in China, banning the agencies from selling directly to local customers.

The row has highlighted the issue of censorship in China. Access to many foreign news websites, including the BBC's, is blocked, while typing "Tiananmen Square" into a search engine yields no information.

"There are quite a few sites that are blocked. It's a fact of life," says Wu. But he thinks the impression in the West of the high level of censorship in China is exaggerated. "It is restrictive but not nearly as bad as you think it is. A big percentage of people's information needs can be satisfied. The only taboo is if you call for the overthrow of Government or support Falun Gong."

When pressed, he implies there are greater priorities than a free media, such as tackling poverty and pollution. "I agree with the universal principle of freedom of the press and journalism. But there are a lot of things that need to be improved in Chinese society in general."

He argues less convincingly that the appetite to invest in Chinese media shows censorship is not severe. "If it really is that suppressive, how would you explain that in new media you have total dominance of private capital? We make more than US$200 million ($302.4 million) a year. If society is really that suppressive, how would you explain that?"

But just because profits from media are high, that does not mean the level of censorship is low.

The regulations can sometimes be bizarre. One MTM executive in China recalls asking censors whether the station could run a programme about young people dyeing their hair in many different colours. The reply was that no one could be pictured with more than three colours. "We never call them [censors]," says Wu. "We self-censor. If I put out 30 colours of hair, the Government will not say a thing, I guarantee you. But if you ask the guy, how many colours of hair, you are asking for trouble."

Sun Media, which is backed by investors in Hong Kong, was set up in 1999 by Wu and his wife, Yang Lan. It is now the second-largest media group in China with 37 magazines and newspapers at home and abroad (including America's Entertainment Today magazine) as well as several TV production companies. In 2002, Wu negotiated the sale of half of his empire to Bertelsmann. But when the then chief executive of the German media group, Thomas Middelhoff, was ousted the deal died. "It was Thomas' baby," Wu recalls. "He was so angry because Bertelsmann could have made US$500 million."

Wu would not sell part of his company now even though he has had offers. Internet take-up may be slowing but there is still a way to go with about 130 million households connected to the web (only 40 million via broadband) out of a population of 1.3 billion.

Wu's wife, a TV personality, is also chairman of Sun Media. "I'm proud of my wife. She's the boss," says Wu. If his five-year plan to beat Murdoch comes off, she'll be the boss of a large empire.

- INDEPENDENT