CNC's Corporate Governance
CNC is operating as a television network, a dominant organizing structure adapted by most giant media outlets. It employs the business mode of franchised dealership so that it can implant its programs into TV programming in different countries and regions.         Generally speaking, CNC involves a Beijing-based production center, its O&O stations and affiliated stations.
The CNC is based in Xinhua headquarters in Beijing. CNC and Xinhua’s TV Department are the same institution under different names.         Xinhua’s TV Department gives broadcasting authorization to China TV Network Programs Operation Co. Ltd., which then allows CNC stations and affiliates to have access to the programs.
The O&O stations
The O&O stations refer to those whose overall shares are owned by CNC in forms of news product, its brand and capital. They encourage cooperation with social funds and technologies. The stations, set up in important areas and regions, operate as companies or institutions.
The affiliated stations
	The affiliated stations carry some or all of the program line-up of CNC, but their owners are other than CNC. CNC’s structure means it has to adopt a varied governance system.         Xinhua’s TV Department is authorized to manage Xinhua TV assets as an independent corporate institution. As CNC and Xinhua’s TV Department are the same institution under different names, CNC’s editorial section is administered by independent corporate governance for public institutions.         CNC will also have several companies at home and abroad. For example, China Xinhua News Network Co. Ltd. and Xinhua Video & Audio Production Center are Xinhua’s fully owned companies. China TV Network Programs Operation Co. Ltd., a joint venture set up in China, is absolutely controlled by Xinhua. CNC also draws social funds to invest in its domestic and overseas stations.         China TV Network Programs Operation Co. Ltd. holds absolute shares in joint-stock O&O stations abroad and in the field of new media.
1 . Business Structure of China TV Network Co. Ltd.
CNC’s programs are produced, provided and managed by Xinhua News Agency.         Taking Xinhua Video & Audio Production Center as business platform, Xinhua TV Department has registered China Xinhua News Network Co. Ltd. in the Hong Kong Special Administrative Region and Beijing. The main role of China Xinhua News Network Co. Ltd. is to develop and manage its subordinate TV stations. It will not offer shares to the public.
2 . Business Structure of China TV Network Programs Operation Co. Ltd.
The Beijing-based China TV Network Programs Operation Co. Ltd. has been authorized to provide all the programs to CNC’s O&O stations (including regional stations, internet and mobilel phone operators), which are allowed to offer the programs to the affiliated stations.         Xinhua holds over 51 percent of the stakes of China TV Network Programs Operation Co. Ltd. and trades the rest with social investors for capital inflow.
3 . Business Structure of CNC Regional Stations
CNC regional stations abroad are required to enter the overseas market, promote and advertise CNC programs. China TV Network Programs Operation Co. Ltd. attracts social funds on the premise that it has over 51 percent of the stakes. It will build several regional stations in Asia-Pacific, North America, Europe and Africa by 2010; in the Middle East, Latin- America and Eurasia by 2011.         The regional stations are expected to enter the market of major cities in their regions and develop affiliates in the capacity of the biggest shareholder and appointing the posts of board chairmen and station directors.         O&O stations pay China TV Network Programs Operation Co. Ltd. for programs provided. The license fees and advertisement revenue will go to the O&O stations.