China digital entertainment market thirst for quality products
Liang Gang, President, Triworks (Asia) Ltd
Digital entertainment products are digital media contents using
internet, television, mobile phone and mp3 player as a carrier
platforms. These contents include comics, games, photos, illustrations
and music. Currently, internet gaming makes up 90% of the Chinese
digital entertainment industry. On the global scale, internet
gaming is only 1% of the digital entertainment industry. This
reflects the potential growth of digital entertainment industry
in China outside of the internet gaming segment.
With an estimated 134 million internet users by the end of 2005,
the Chinese digital entertainment market is ready and hungry for
quality digital entertainment products. This presents a great
business opportunity for digital entertainment providers such
One of the biggest challenges the Chinese digital entertainment
industry faces is the infringement of intellectual property right.
The threat of intellectual property piracy has hindered the development
of quality digital entertainment media in China as many companies
are reluctant to invest heavily in the development of new products.
Ironically, this challenge also presents an opportunity for companies.
Currently, 90% of the comic book market is plagued by piracy.
One direct solution to the piracy problem is in using encrypted
contents over the internet. With the new encryption technology,
DigiBook has succeeded in preventing duplication of digital contents
and user account thefts. At the same time, DigiBook's account
inquiry system accurately reports the number of content downloads
to the content copyright holder. After a year of cooperation,
the largest comic book publisher in Hong Kong, Yu Huang Chao Inc,
entrusted TriWorks with all of its content copyrights.
The popularization of broadband, improved encryption technology
and traditional publisher's better understanding of the digital
market will shift the mainstream publishing platform in China
and abroad to digital entertainment industry. All parties involved
will benefit from this transformation. By providing digital contents
over the internet, publishers will be able to better protect their
content copyrights in addition to reaching more consumers. Consumers
will benefit by receiving higher quality multimedia contents at
a lower cost than the traditional paper format. However, digital
entertainment will by no means replace traditional formats completely.
In DigiBook's cooperation with Yu Huang Chao Inc, contents will
be published through traditional paper format and online platform
simultaneously. The synergy created by having both publishing
channels will maximize consumer reach and content distribution.
To help increase Chinese digital entertainment consumption, DigiBook
adopted the strategy of providing a wide variety of high quality
digital media content at a low cost to consumers. DigiBook focuses
on both the breadth and quality of its digital media products.
Their digital reading collection covers sports, history, humor,
horror, love and science fiction. In terms of quality, DigiBook
features celebrated Chinese authors such as Huang Yulang, Ma Rongcheng
and Li Zhiqing. DigiBook combines their distinct contents with
audio and flash technology, creating media entertainment packages
that will certainly stimulate the reader's senses.
Currently majority of the multimedia contents from TriWorks are
from Japan, Hong Kong, Korea and other foreign countries. These
imported contents have proven to be extremely popular among Chinese
consumers. However, TriWorks believes that the development of
local products is crucial for the Chinese digital entertainment
industry to reach the next level.
Besides developing innovative technology and outstanding contents,
TriWorks also actively supports the development of local artists
and authors. China is home to many exceptional artists. Unfortunately,
in many cases their potential is never fully developed. To help
facilitate the development of local talents, TriWorks is holding
a fiction and comic composition contest. The winners will receive
free trip to Hong Kong Disney Land as well as cash rewards.
The digital entertainment industry in China is rapidly expanding,
and its future is full of opportunity. TriWorks has positioned
itself to play a key role in China's digital entertainment revolution
by developing innovative technologies and providing quality contents
to its consumers. There will be challenges in the road ahead,
but by focusing on providing quality contents to the young internet
(October 12, 2005)