Published by Sciedu Press 26 ISSN 1927-6001 E-ISSN 1927-601X Strategies of the Pay-TV in Government Administration

China’s radio and television has always been an industry with strong policy, as a field of which the government strictly controls. At present, the special status of broadcast industry which should take account for both public interests and marketization is affected by the policies due to the nature of institution and enterprise management. Digital pay-TV as a part of broadcast industry cannot be exclusive. The government administration is defined as “a series of management and regulation behaviors which legal regulatory agencies are relatively independent as well taken by administrators (mainly enterprise) according to certain laws and regulations”. The purpose of such restriction is to overcome market failures to maintain a favorable environment for a normal economic development. Government administration of digital pay-TV refers to government manage and control the premium channels in the means of economy, legislation, and administration in order to overcome or compensate the failure of market mechanism in resource allocation to ensure the reasonable allocation of market interests. Government’s role is to create a more rational policy environment strengthening the management and standard to the market, increasing the intensity of macroeconomic regulation, to create a favorable external environment for premium channels. However