Online Literature: New Business Model

http://blogs.lse.ac.uk/businessreview/2017/01/19/the-chinese-have-transitioned-directly-to-a-mobile-only-era/

The unique feature of Chinese online literature is that most works are serialized novels that authors write and post in installments (a new form of “content”). Every day, millions of young digital-reading users refresh their mobile apps, just to keep up with the latest daily updates of their favorite reads. For many people who do not have the time to read a book in hard copy, the novels on a mobile phone (a new “connection”) can be easily read whenever they have some spare time.

The installment format also helps the literature websites to implement a pay-for-content mechanism. When authors start to build up large readerships, the online portals offer them contracts and move their works off the free domain. The sites arrange for the authors to write stories in instalments (typically with a total character cap for each post), and readers then pay a tiny fee equivalent to a fraction of US$ 0.01 to read each update, far cheaper than paying for hard copy versions from a book store.

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