Global media giant Viacom announced Tuesday an alliance with Shanghai Media Group (SMG) to establish a content production joint venture.

The partnership marks a further opening up of China's sheltered media sector, as it represents the first investment by a foreign media company in a Chinese content production company.

Prior to the move, MTV, one of Viacom's major business arms, was given the green light to air its 24-hour channel in South China's Guangdong Province, which represented its first major business breakthrough in the Chinese market.

But this agreement with SMG is still subject to "soft approval," said Viacom's Chairman Sumner Redstone, "which we are confident we will get based on discussions (with officials)."

Redstone, who is also chief executive officer of the media giant that covers broadcast and cable television, radio, outdoor advertising and online ventures, was in China for a week-long trip, when he met officials from the government, media sector and advertisers and reached a number of key agreements with local players.

This joint venture will co-produce domestically created children's and youth programmes, including educational and animated viewing, for distribution on Shanghai Media Group channels, according to Redstone.

But Li Yifei, chief representative of Viacom's China office, said the programmes created by the joint venture will also be distributed to other regions worldwide.

Business interests for the joint venture will also include advertising sales to Chinese and international clients.

"The groundbreaking partnership with SMG not only significantly expands our position in Shanghai, but also paves the way for us to extend the distribution of our MTV China channel," Redstone said.

But the company declined to unveil the exact amounts involved with the investments and the stakes that the company will hold in the joint venture.

"I am not permitted to tell you the amount of our investment... (but) it is not a majority," Redstone told China Daily.

"(But) we will have a huge stake in the joint venture... and the joint venture will be managed together by members from SMG and Viacom in the true joint venture style."

Talking about the timing of the debut of programmes produced by the new venture, Redstone said he expected the shows to be launched before the summer.

"We still have big ambitions for expanding our presence in China for both MTV and Nickelodeon," said Redstone, when referring to the music channel and the company's popular children's network.

Viacom also inked deals with CCTV for broadcasting 1.5 hours daily worth of Nickelodeon animated programmes on CCTV's newly created children's channel, as well as the creation of an awards show for kids.

The awards event will become the nation's first awards show for kids and also introduce the Nickelodeon's Kids Choice Awards franchise to the country.

Viacom will also team up with CCTV to invest in HIV/AIDS education content and events in China.

"(The deals) are historic for Viacom's development in China," said Redstone, an 81-year-old business tycoon.

During Redstone's stay in China, Viacom and Tsinghua Tongfang, one of China's newly developed high-tech firms, agreed to enter a strategic relationship where the two companies will pursue opportunities for content or other partnerships in digital, broadcast or other media.

Tongfang will also promote its PC brands through advertising and sponsorship relationships with MTV China.

"The alliance leverages Viacom's expertise in content as Tongfang looks to expand its participation in digital media content and distribution," said a Viacom release.

"I am confident that marrying Tongfang's expertise and Viacom's strength in development of dynamic content will create exciting opportunities," Redstone said.

(China Daily March 24, 2004)