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Shanghai Tunes in TV Home Shopping

China's first Republic of Korea-funded TV home shopping joint venture is expected to hit Shanghai' s airwaves on April 1, Saturday's China Daily reported.

The venture, the product of more than one year of commercial negotiations, is worth US$20 million, with Shanghai Media Group (SMG) taking 51 percent share and CJ (Cheil Jedang) Home Shopping of South Korea taking 49 percent.

"East China has potential in the TV home shopping business since it contributed to 36 percent of the nation's total retail sales last year," said Kim Heung-soo, president of the Shanghai SMG-CJ Home Shopping Co, Ltd

SMG will use its Theater Channel through Oriental TV to broadcast home shopping programs for five hours every day in the initial phase.

"As the market expands, we will televise the programs for 24 hours daily," said Li Ruigang, president of SMG.

CJ is the world third largest TV home shopping company with revenues of US$1.2 billion earned in 2002.

SMG began to consider the home shopping industry in 2002 when it conducted market research in the United States and some Asian countries and surprisingly found that a home shopping TV channel in South Korea can bring about annual revenues of US$1.2 billion.

"Home shopping will become our new industry, which is expected to earn profits for the group," Li said.

Seven out of SMG 11 channels failed to earn money for the media group last year.

(Xinhua News Agency March 21, 2004)

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