Murdoch's winning strategy in China

RUPERT Murdoch's overtures to the Beijing leadership continue to be rewarded, with News Corporation's Hong Kong unit Star TV gaining approval to broadcast to hotels on the Chinese mainland.

Star's Mandarin-language entertainment channel has been given permission to broadcast to all hotels above three-star level. This follows similar approval for another Star affiliate, the 37% owned Phoenix Satellite Television, and the announcement of an alliance with Hunan TV, China's first publicly listed broadcast group, earlier this month.

The moves are also a subtle boost for Rupert Murdoch's youngest son, James, who has made a favourable impression since taking over as chief executive and chairman of Star TV in 2000.

James Murdoch's tenure has coincided with Star's transition into profit after years of losses. At one stage Star was losing about £70m a year, and after pumping about £1.2bn into the company over the past decade it recorded its first operating profit last April.

Star's entertainment channel can be seen by Chinese households in parts of southern Guangdong province, one of China's most developed and wealthiest regions, along with other Phoenix channels.

The alliance with Hunan TV will involve Star jointly financing and producing programmes for the Chinese market, while the Chinese company sees the Star link as a crucial part of its plans to sell its content to the world.