Wang Weiping, deputy director of the Chinese State Administration of Radio, Film and Television's (SARFT) Department of Teleplay Administration, recently disclosed at the 11th Annual Capital TV Programming Showcase (Fall 2012) in Beijing that SARFT will require TV drama production companies to "reduce quantity and increase quality" starting in October 2012 due to concerns over surplus production.
According to data from SARFT, China became the world's largest producer of TV dramas in 2011, producing 15,000 episodes but only airing over 3,000 episodes. The TV programming promoted at the Showcase totals more than 15,000 episodes this year.
Producer Li Long said that 70% of TV dramas produced lose money, with approximately 10% achieving profitability, and claimed that production companies continue to invest in failing productions because of the drive to IPO. "Companies that previously only released 2-3 shows a year now must release over a dozen series annually," said Li, who said that production is unable to keep up with the demand for increased output, resulting in poorly-produced content, and that after listing, companies continue to produce low-quality programming in order to meet investors' expectations. Li said that 4-5 film and TV production studios have already listed, and more than a dozen are preparing to IPO.