E-readers

According to GAPP, China's digital publication output value is expected to reach 25 percent of the total of press and publication sector by the end of the government's 12th Five-Year Plan in 2015. Positive about the promising future of the online literature business, Shanda Literature, who already controls six of the top 10 online literature websites in China, now has its eye on bigger things. CEO Hou Xiaoqiang has said he is interested in the emerging market of e-readers, dedicated electronic devices for text- and image-based digital publications.

e-Readers have the advantage of doing one thing well. However, due to the expensive cost, varying from 800 to 4,000 yuan ($120-$600), compared to multi-purpose devices, they are not yet the first choice for many readers.

Wang Jingjie, an analyst from CNNIC, said the increasingly popular 3G technology means more Chinese are using their cell phones to read online literature. "The cell phone will be a potential distribution channel of online literature and become a key factor of the sector's profit," predicted Wang.

Computer Internet Services Usage  in China as of June 2010

Measured in (%)

1.  Entertainment

       Online music       80.0%

       Online game        70.5

       Online video              63.2%

       Online literature  44.8%

2.        Communication

Instant messaging                        72.4%

       Email                                               56.5%

       Blog                                                55.1%

       Social Network Service (SNS)              50.1%

Bulletin Board System (BBS)        31.5%

3.  Information

       Netnews                     78.5%

       Search engine      76.3%

4.       E-commerce

Online shopping                33.8%

Online payment                 30.5%

E-bank                               29.1%

Online stock trading         15.0%

Travel booking                  8.6%

Source: China Internet Network Information Center

Cell Phone Internet Services Usage  in China as of June 2010

Measured in (%)

1.        Entertainment

Music                  45.3%

Literature            43.3%

Game                   21.1%

Video                  20.4% 

2.        Communication

Instant messaging             61.5%

SNS                                   35.5%

Email                                 16.0%

3.        Information

Search engine             48.4%

4.        E-commerce

Online payment          6.1%