SMEG starts restructuring production and broadcast business

The Shanghai Media and Entertainment Group (SMEG), one of the most powerful and influential Chinese-language media and entertainment groups announced its restructuring plan Wednesday. 

According to the plan, the SMEG will split its company into two, with the television production business, which includes dramas and commercials, into a new company called Shanghai Oriental Media (Group) Co., Ltd. (SOMG). The name of SMEG will be changed into Shanghai Radio and Television (SRT), which will mainly focus on broadcasting.

The move signals the start of separating the broadcasting and filming business in China’s media industry. It is hoped that since SOMG will not be State-owned that it will become more flexible and competitive in the market.

The launching ceremony for the two new companies was held in Shanghai Thursday afternoon. 

The newly established SOMG will mainly be responsible for producing TV dramas, animation, programs about sports and lifestyle, and other service programs which were formerly under control of SMEG. SOMG will also make its own management decisions, be responsible for profits and losses, but major decisions need to have SRT's approval.
 

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