Sky Wing Reading Base announces establishment of Sky Wing Reading Culture Communication Co., Ltd.

Absrtact: After the China Telecom Sky-wing video base, game base company restructuring, the Sky Wing Reading base has also announced the establishment of Sky Wing Reading Culture Communication Co., Ltd. in Hangzhou. The company also announced that it will be listed as the target, starting next year will actively introduce external capital,

After the China Telecom Tianyi Video base, game base company restructuring, the Sky Wing Reading base has also announced the establishment of Sky Wing Reading Culture Communication Co., Ltd. in Hangzhou. The company also announced that it will be listed as the target, starting next year will actively introduce external capital, hoping to achieve profitability in 2014.

and games and other traditional profitable business, the pay-reading market is small, in the PC-side online reading in the field of the monopoly of the grand literature in the first quarter of this year, profit is only more than 3 million, its IPO plan because of business obstruction and other reasons dragged, so far failed to complete.

But in the field of mobile phone reading, operators have made good achievements. Sky Wing Reading is expected to revenue 100 million yuan this year, while mobile reading base monthly income of billion. Why do only operators get larger revenues in the mobile-reading world where traditional internet companies scramble to launch e-books and reading platforms?

Sun Pelin, an international analyst at Analysys, said in an interview with the investor newspaper that this was the result of the passive consumption of the operators ' bundled users with their telecoms business, and that internet companies could only rely on users ' initiative to buy services.

Operators monopolize mobile Phone reading market

At present, the domestic three major operators have launched their own mobile reading platform. Telecom's "sky-wing reading", mobile "mobile reading", Unicom's "wo reading" can be accessed through the website and client, download E-book offline reading. And the domestic major internet companies have been involved in mobile phone reading, when, Jingdong, Baidu are invariably moving towards the mobile reading market, Taobao launched the Amoy Flower, Tencent launched a mobile phone QQ reading, Baidu launched a mobile version of the library.

Compared to the dismal online pay-reading business on the PC side, the phone has a much bigger cake to read. In the 1th quarter of 2012, China's mobile phone reading market total revenue growth of 2.57%, up to 1.215 billion yuan, according to the latest data released by the Analysys think-tank. Among them, the market share of e-books accounted for about half.

However, most of the cake fell into the carrier's plate. Sky Wing Reading last year to achieve 30 million yuan revenue, this year is expected to break through 100 million yuan. By the end of last June, Sky-wing reading was dominated by free mode. Mobile reading base is more revenue. Data show that China Mobile phone reading now average monthly revenue has exceeded 100 million.

Other reading platforms, by contrast, have a much smaller income. The Shanda literature, which dominates the online reading market in the PC side, earned 52.12 million of its online paid business in the first quarter of this year. China's other smartphones on the reading platform to generate a small amount of revenue, such as tens of millions of users of the 91 panda reading, the revenue generated only millions of yuan a year.

"Fee reading is a thankless business, and operators occupy the majority of the market share of mobile phone reading, which is the result of passive consumption of their bundled users." "Sun Pelin to reporters that operators in a variety of ways to bundle users, such as in their telecommunications services bundled mobile pay-reading service, early promotion by sending the phone bill or first free trial six months and other ways to attract users, but the expiration of six months does not remind users to unsubscribe business. In addition, in charge of operators also have advantages, can be through SMS and other means to complete the charges.

"Operators are not really relying on services to get users, and most users are passively receptive to this kind of business." And the Internet company's business is to require users to actively spend money, it is difficult to do. said the analyst.

In fact, because of the wealth of pirated and free content on devices such as smartphones and tablets, the willingness of users to pay to read on mobile devices is not high. According to the Analysys International "2011 China Mobile Phone Reading market users study report" research found that in 2011, the overall mobile-phone reading market was less willing to pay, and the report notes that users ' pay-reading habits on smartphones have not yet formed, compared to the ability of mobile phones to have more free reading resources on smartphones than to pay for them.

Internet companies become content providers

Sky Wing Reading said that since its inception in 2010, Sky Wing Reading has been with more than 200 domestic content providers to cooperate, more than 80% of the content of the regular publication books, content providers can read from the sky Wing to obtain 45% of the income share. But in fact, the carrier's content source is from the online reading website distribution, the two sides according to the income split.

Shanda Literature is a typical example of income growth through content distribution. The company's first-quarter revenue came from a wireless business of 52.77 million, more than the online fee-based literature business on which it started, most of which came from operators ' reading base business. It can be said that there is no mobile reading base of the split, the grand literature can not achieve the first quarter of the loss. Shanda Literature CEO Hou said to the media, the future from the copyright sales channels, mobile Internet must be the largest piece.

"Mobile reading base to Sina reading one months can bring millions of income." "An online paid-reading veteran told the investor newspaper. Sina reading is the domestic larger online reading platform.

The above people also told reporters, Tencent Network is currently connected to China Mobile reading base. "Operators recommend channels are very good, they are relying on channels to make money, and we are not the same." "The person said.

Although these internet companies also have their own mobile phone reading platform, such as the royal literature under the tea Tim Incense has its own mobile app, Sina read the app has been in the Android and Symbian platform online, Tencent mobile phone QQ reader has been operating for a long while. But because of the difficulty of getting paid subscribers, copyright distribution is still the main way to gain revenue from mobile phone reading.

"It is a trend for internet companies to increase competition in the mobile E-book reading market, but operators will still occupy a large part of the market in this area for a short time," he said. "Sun Pelin pointed out that" internet companies and operators is a competitive cooperative relationship, in the future, how the content of copyright cooperation to see the positioning of enterprises. ”

In a short time, the mobile phone reading market is mainly the competition between operators. "Operators are simply selling content, not grabbing products, and not putting product development first." Telecom users are not large enough, but it may become the starting point for its users, because fewer users can see the ceiling, but also through product improvement and the operation of content to attract some active consumer users. "The analysts said.