China’s Online Literature Market Reached Nearly ¥5 Billion in 2016
The development of Internet has brought about the prosperity of online literature. After the budding stage in the 1990s to the rise of paid reading from the early 21st century to 2010 , and later entrance to the era of mobile, online literature has grown into a market with a readership of more than 300 million people a year, and revenue of nearly ¥5 billion.
Online Literature Market Size
According to Sullivan’s report, the market size of Chinese online literature in 2016 was ¥4.57billion, increasing by 60.7% compared with the previous year. In 2017, it is expected to be ¥6.33billion, and it is expected to reach to ¥13.41 billion by 2020.
Online Literature Users Scale
According to Sullivan’s data, the number of Chinese online literature users in 2016 was 333 million, increasing by 12.3% compared with the previous year.It is expected to reach to 421 million by 2020, while the number of online literature writers is expected to reach to 8.5 million.
According to the latest report released by China Internet Network Information Center (CNNIC), the number of Chinese online literature users reached to 353 million as of June 2017, accounting for 46.9% of the total.
According to Sullivan’s report, the total number of online literature works in China reached to 11.6 million in 2016, and it is expected to reach to 22.4 million by 2020, with annual compound growth of 17.8%.
In 2016, there were 1.9 million new Internet literature works, and it is expected to reach to 3.2 million by 2020, with annual compound growth of 13.7%. Literary themes have also covered more than 200 subjects, more than traditional literature.
In the market pattern of online literature, the number of works of China Reading accounted for 72% of the total number of online literature, 27.5% of Chinese Online, 5.2% of iReader, 3.2% of Baidu Literature and 1.7% of Alibaba Literature. There is no doubt that Chinese Reading has become a giant in the online literature market and has advantages that other platforms can’t surmount.
Characteristics of Online Literature Development
1.The Mobile Terminal Occupies the Dominant Position
According to the data of China Internet Network Information Center (CNNIC), the number of online literature users reached to 353 million as of June 2017, with 327 million mobile Internet literature users accounting for 92.6% of the total.
According to the forecast of Sullivan, users’ willingness also increased year by year. The proportion of online reading payment on both PC and mobile has risen from 1.3% and 3.3% in 2013 to 2.0% and 2.0% in 2016, and it is expected to rise further to 4.8% and 14.5% by 2020 .Thus, mobile reading has dominated the online literature market in China.
2.IP Development Forms the Industrial Chain
In recent years, a large number of TV, animation and game works adapted from the IP of Chinese Internet literature are popular with audiences and users. The IP development of online literature gradually forms a complete industrial chain. According to Sullivan’s data, the share of copyright revenue in the online literature industry nearly doubled yoy in 2016.
According to the data of the TV Drama Eagle Eye, a 28% share of the 2016 TOP50 drama was adapted from online literature novels. In 2017, 44% of the TOP5 provincial satellite TV dramas are adapted from online literature novels, which shows that the online literature IP adaptation is particularly hot in film and TV play.
3.Overseas Markets Are Booming
With the increasing interest of overseas readers in Chinese online literature, Chinese online literature has flourished overseas, becoming a word-of-mouth effect from the bottom up, and from the point to the surface.
According to Sullivan’s data, there are hundreds of overseas communities and websites that have spontaneously translated and shared Chinese online novels. Readers are found in more than 20 countries and regions including Southeast Asia, the United States, Britain, France, Russia and Turkey.
At the same time, according to the data in June 2017 of the three biggest online literature translation website Wuxia World , Gravity Tales, and Volaro Translation, the number of monthly active readers of the three has reached to 5.5 million, and the number of the Chinese online literary novel that has already been translated and is being translated is close to a hundred.
4.The Piracy Is Serious
Although the Chinese online literature is developing rapidly, the piracy is inevitable. It not only does harm to the benefit of the author, the authorized network platform, and the network cultural creativity industry, but also hinders the healthy development of the digital cultural creativity industry market.
According to the White Paper on Copyright Protection of Chinese Network Literature, the pirated online literature in 2014 if all are priced in accordance with the authorized, the income losses of PC paid reading will reach to ¥4.32 billion, the income losses of mobile paid reading will reach to ¥3.45 billion, the output losses of derivative products will reach to 2.18 billion, and industry loss will reach to nearly ¥10 billion.
In 2016, the company of China Reading had launched more than 800 civil lawsuits and one hundred thousands infringing links was off-shelved, covering tens of thousands of well-known works.