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 as TriWorks.

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 generation,.

(October 12, 2005)

 
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