Accordingly, many observers see mobile phone operators,led by the giant China Mobile in a unique position to developplatforms that bring notably young users in China’shuge urban agglomerations the content they are lookingfor, and ebooks are an integral part of it. Respective plansgo back to 2010, when China Mobile already had announcedplans to “build China’s biggest ebookstore”.(Publishing Perspectives, 16 May 2012), but it took until2013, and a broader upswing for mobile commerce to pickup speed. The stakes are high, given the strong competitionfrom domestic giants in e-commerce, so that “even acompany valued at $126 billion can’t mess with Jack Ma’shomegrown powerhouse Alibaba Group Holding, whichowns Taobao Marketplace and Tmall“, as Bloomberg summarizedthe situation at Amazon’s launch. By mid-2013,the most popular platforms for ebook downloads are estimatedto be China Mobile and Cina Unicom, followed byAmazon and 360. (Cheng Sanguo, BookDao, for this report)In June 2013, Amazon has entered the Chinese market ina “long-overdue release of the Kindle" (Bloomberg, 10 June2013) by launching a dedicated Chinese platform, andpromoting notably its tablet, the Fire, among Chinesereaders. The Kindle Paperwhite was prized at $138, the FireHD starting at $244.In order to strengthen its on position with regard toebooks, the leading domestic Chinese online platform forbooks, Dangdang, has started a campaign in spring 2013,offering their entire digital catalogue for free. (The DigitalReader, 22 April 2013)Also in 2013, and after a several years long struggle ofverlicensing details, Apple’s iPhone was cleared to run on ChinaMobile’s networks. (WSJ 11 September 2013)Bt also in less grandiose dimensions, China is build an infrastructureto be a part, and a competitor, in the globalexchange of digital content, including books and journals.For the latter, the import and export arm of China PublishingGroup, CNIEPC, has launched a new platform for accessingthe international e-journal segmentat the BeijingInternational Book Fair in Auust 2013. (Teleread, 30 August2013)In the meantime, another strong and innovative player inChina’s efforts to bringing books and reading online, Cloudary- formerly branded as Shanda - seems to have cutdown on its plans for international expansion, by closingthe respective departments altogether. (Information receivedfor this report) Shanda Cloudary has also withdawnits initial plan for an IPO in 2013, pending since 2012, yetclosed a round of direct funding. (Technode, 15 Julay 2013)By Veronika LicherThe ambitious plan ahead—combiningcontent and capital (2012)The “12th Five-Year Development Plan for the Press andPublication Industry” that China released in 2011 approved,among other things, 23 projects in support of digitalpublishing or technological innovation. The creationof five new “national digital publishing bases” in 2011made for a total of nine such enterprises, with a combinedrevenue of ¥42 billion, or 30.5 percent of total Chinese/global revenue for digital publishing in 2011. Even at theSeptember 2012 exchange rate of about ¥6.28 to the USdollar, this is a considerable amount (Liu Binjie at BeijingInternational Publishing Forum [BIPF], August 28, 2012).As Liu Binjie, minister of the General Administration ofPress and Publication (GAPP) and of the National CopyrightAdministration, pointed out at the Beijing InternationalPublishing Forum held on August 28, 2012, the governmentshows great interest in encouraging (and guiding)the development of digital publishing in China. Fouradministrative decisions support the effort. First, the governmentwill give a significant percentage of special fundingfor cultural development to digital publishing projects.Second, strategic investors and financial capital will be encouragedto focus on cultural industry. GAPP has signedstrategic cooperation agreements with several importantChinese banks to provide loans (up to several hundred billionyuan, according to Liu) to enterprises in digital publication.Also, technology and publishing operations will beurged to forge closer ties. Thus, GAPP has signed agreementswith several companies in the communications sector,including China Mobile, China Unicom, and China Telecom.To hasten the growth of industrial and digital publishinginitiatives, the telecom organizations will help propelthe digitization process of traditional publishing aswell.Status of the ebook sectorIn 2011, China’s epublishing market (or digital publishingoperating income, which includes not only books but alldigital content industries) grew by 31 percent to total revenuesof ¥137.8 billion (China Daily, August 29, 2012;GAPP’s “2011 Nationwide News and Publication IndustryAnalysis Report,” July 7, 2012).66 The Global eBook Report
ChinaKey Indicators Values Sources, commentsBook market size (p+e, at consumer prices) €14.2 billion ¥118,000 million (General Administration for Press and Publications, GAPP, 2012)Titles published per year (new and successiveeditions)New titles per 1 million inhabitants414,000 GAPPElectronic publications 11,154 GAPP, 2011.; Figures do not include “online literature” titles, which are not comparable, e.g., 6million (2012, Lisa Zhang, interviewCloudary, for this report).Key market parameters CEB China Ebook Format, a domestic ebook format, notably promoted by Apabi (of Founders company);fixed prices for ebooksAccording to the GAPP report for 2011, all national publishing,printing, and distribution services combinedachieved an operating income of ¥1.46 trillion, a 17.7 percentincrease of 219.3 billion over 2010. There was an addedvalue of ¥402.2 billion, a 14.8 percent increase of ¥51.83billion.A July 2012 press release for the Beijing International BookFair (BIBF) asserts that China is the second-largest publishingmarket in the world. Yet a comparison of the publishingmarket in China to those of North America and Europemust take into account not only great disparities ofincome levels and standards of living, but also significantdifferences in the structure of the market and consumptionpatterns.The book publishing environmentOver the last decade, China has made considerable effortsto grow and professionalize its (printed book) publishingsector. Although all of China’s approximately 580 publishinghouses are under direct state ownership and controlby GAPP, during the last 10 years some 10,000 “culturalstudios” have been created, of which many act as publishingunits but with cooperative contracts with the stateownedhouses for ISBN assignment. By acquiring the foreignrights of more than 10,000 titles per year (2011: 14,708titles, an increase of 7 percent over 2010; Lei Ren citing BIBFin her article in Publishing Perspectives, September 6,2012), Chinese publishers aggressively broadened theirlists with internationally competitive works.The government has played an active role in encouragingthe best-performing groups to form larger entities andcompete internationally under the guideline of its “goingout” policy. By November 2010, 435 of 528 officially listedstate-owned publishing houses had undergone restructuring.The goals of this effort are to create more competitivecompanies and to identify those that should prepareto develop international strategies as well as to go public(notably on the Shanghai stock exchange).In this way, in late 2010, a new entity branded the “ChinaEducation Publishing and Media Group” was launched,with a projected turnover of ¥6 billion—combining theformer Higher Education Press, the People’s EducationPress, plus several smaller entities—to successfully confrontthe challenges of the digital transformation and toreach out to international partners. Several of thosegroups are preparing for going public.For Jiangsu Phoenix Publishing & Media Group Co., Ltd.(PPMG) in Nanjing (the Chinese partner for the FrenchHachette group) as well as Hunan Publishing InvestmentHolding Group Co., Ltd. in Changsha for example, the mainbusiness revenue and total assets exceeded ¥10 billion asreported by GAPP (China Market Insight, BIBF 2012; GAPP2011).Both houses, as is typical for Chinese publishing houses,cover a wide range of topics in their publications, fromphilosophy, management, youth, and children to generaltrade books.“Zhong Nan,” short for China South Publishing & MediaGroup Co., Ltd., in Changsha, founded in 2008, has recentlybecome number two in the list of China’s top publishingventures on a GAPP ranking that combines several indexes.This development has been driven by ChairmanGong Shugang, who is known for his aggressive stockmarket strategies (interview by Veronika Licher with PublishingConsultant Cheng Sanguo, Beijing, September2012).China Education Publishing & Mediaholdings Co. Ltd., inBeijing, chaired by Li Pengyi, is listed as number three onthis ranking. As a state-owned enterprise, the group spe-The Global eBook Report 67
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Receptiveness for foreign (English)
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Mapping and Understandingthe Emergi
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publishers’ agreement with Apple
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Metadata is the key to online sales
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