Despite studies projecting that millennials may prefer reading paper books over e books, China Literature, a pioneer online literature company, is tying up with Singtel to bring literature to readers online.
China Literature, a unit of Tencent Holdings and China’s largest e-book and online publishing website, boasts 9.6 million e-books from 6.4 million authors and they plan to grow bigger with the merger.
“We are the biggest owner of intellectual property (IP) in China, but that’s not the end of the story,” said vice-president Luo Li of China Literature. China Literature earns its income by charging readers for their services. Last year it generated an annual profit of 30.36 million yuan. However, Mr Luo Li stated that online readers would be charged lesser once the income from the IP business rose.
Chinese internet giant Tencent is expected to dominate the market for online literature after completing its acquisition of Shanda Cloudary, Shanda’s online literature company, reports the China Business News.
Tencent and Shanda recently reached an agreement to jointly set up a new company, China Reading, in the online literature space. A number of literary websites affiliated with Tencent Literature and publishing institutions under Shanda Cloudary will come under the management of the new company following the acquisition.
Chinese Internet company Tencent announced that its Internet literature business will implement independent operation as a subsidiary and Wu Wenhui has been appointed chief executive officer of this new entity.
Meanwhile, Shang Xuesong was appointed president of Tencent Literature; Zhang Rong was appointed senior vice president; and Cheng Wu, vice president of Tencent, was appointed chairman of this new company.