The State Administration of Press, Publication, Radio, Film and Television of China recently issued a guide opinion on facilitating the development of online literature, requiring to step up on construction of content delivery platform and cultivating the market, encouraging the companies full use of internet, mobile internet to develop and popularize excellent internet literatures in the form of image and text, audio and video. The opinion attracted the attention of internet writers, experts and some media companies. People generally think that it is good news for the developing internet literature market. "The new rule reflected that China has attaches a great importance to the rapid development of internet literature." Said Luo Li, vice-president of Tecent Literature.
After ten years' development, China now has 274 million internet literature readers, and more than 44% netizens have habit of reading internet literature. The huge netizens and literature fans have created so many rich internet writers. Thanks to the large user group and considerable revenue, the internet literature has become an important point of investment for internet giants. In 2013, Baidu bought Zongheng Chinese Net at 190 million yuan. In 2014, as an independent department, Baidu Literature began to commercialize the copyright of internet literature. Also in 2013, the establishment of Tencent Literature has shown its determination to integrate Tencent Game and Tencent Animation based on the copyright of internet literature.
The internet giants have changed the market pattern of internet literature. According to a report released by Enfodesk, in the third quarter of 2014, the six websites of Shengda Literature own nearly 50% of the market, following by Chuangshi Chinese Station, 17K Novel Station and Zongheng Chinese Station.
"Although Tencent Literature and Shengda Literature declined to comment on purchasing, the Qidian Chinese Station under Shengda Literature has combined Tencent Literature in third-party channels status. It's just a matter of time before it was announced to the public." Said Yao Haifeng, the analyst of Enfodesk. "The combination of the two major literature websites will break the structure dominating by Shengda, Tencent and Baidu. Tencent Literature will become the leader with the aid of huge user group and channel resource." Yao adds.
In 2015, for the other companies, Yao said there is a problem, but he also said there is hope. "For one side, Tencent and Shengda need time to adjust staff and resources, for the other side, after fierce competition in 2014, the adaptation rights of literature works into films and games had been sold, which offers some internet literature companies including Baidu an opportunity to catch their breath. "
Yao also said that some companies could make efforts on mobile reading devices. According to the report released by Enfodesk, in 2014, China's mobile reading market was worth 8.84 billion yuan, and it is expected to break 15 billion yuan in 2017. In terms of the periodic of industry development, the mobile reading industry is still under fast development. So, some uncompetitive companies still have chance to do well in mobile terminals.
(Source: China IP News)
