Phoenix Wings Getting Clipped?

I’m hearing from one of my sources that Phoenix Satellite (HKEx: 2008), probably the only “foreign” broadcaster to boast anything resembling even slight success in China, has hit a road bump in its drive into the world’s most populous TV market. It seems that after years of giving preferable treatment to Phoenix, led by a former PLA propaganda officer, the Chinese Propaganda Ministry is actually asking for something in return. My source says the propaganda ministry wants Phoenix to do more to spread news about China to the outside world, which sounds largely in line with China’s broader goals of extending its “soft” power beyond its borders. Only problem is, when you ask private companies to get into things like the unprofitable business of soft power, the bottom line often ends up falling as victim. But then again, Phoenix can hardly afford to upset its Beijing sugar daddies. Stay tuned to see how the chips fall on this one, but the picture can’t look too good for Phoenix profits in the short term.