Introduction

Under the impact of the digital wave, Chinese online literature has undergone a significant transformation from free sharing to paid reading. The establishment of the VIP paid reading model by Qidian.com in 2003 marked the shift of Chinese online literature from a hobby to a professional business. From the initial free release model to the birth of paid reading, and now to a diversified market structure, the commercialization journey of Chinese online literature has been extraordinary over the past twenty years.

1.1 From Free to Paid: The Commencement of Online Literature Commercialization

As previously introduced in “The Origins of Chinese Web Literature-Cultural Innovation Amid the Internet Wave,” early authors published their works usually in a serialized form in forums and BBS platforms, initially sharing their works for free, and driven by passion and desire to engage with readers directly. However, as the internet rapidly developed, the commercial potential of online literature gradually emerged. In 2000, Rongshuxia.com pioneered the paid reading model, marking the beginning of the marketization of online literature. Although the pioneer ceased operations in 2020, its introduction of the paid model not only provided creators a way to earn income, but also laid the foundation for monetizing online literature at that time.

In 2003, Qidian.com introduced the VIP subscription system, significantly advancing the commercialization process of Chinese online literature and heralding a new era of marketization. The paid reading model quickly became the mainstream, attracting more writers and literary works to join the burgeoning field of online literature.

1.2 The Controversy Accompanying the Birth of Paid Reading

The VIP paid reading model, as the name implies, is a service for readers willing to pay for premium content. Specifically, readers interested in a particular work need pay a fee to unlock subsequent chapters. While this model acknowledged writers’ labor, it initially sparked considerable controversy. Some readers were dissatisfied with the need to pay for reading, seeing it as a disruption of the free spirit of online literature. On the other hand, authors benefited tangibly from this model, which boosted their enthusiasm for creation and led to the emergence of more high-quality works. Despite the controversies, the march towards marketization continued steadily.

1.3 Market Competition and Resource Integration

The paid reading model has fueled intense competition among literary websites, with over 5000 literary websites sprung up in China in a peak, each vying for a share of the new cultural consumption field. Platforms like Qidian.com, Chuangshi.qq.com, Zongheng.com, and jjwxc.net continuously innovated, exploring unique operational strategies, extensive libraries, and user-friendly experiences (such as personalized recommendations and interactive comments) to attract readers. Additionally, numerous content participants of blogs, and WeChat public accounts, excluding novel websites and reading apps, stood out by innovating business models and diversifying content.

Meanwhile, resource integration and market optimization became crucial. Major internet firms began acquiring novel copyrights and incorporating outstanding works and authors into their ecosystems, creating strong content fortresses. Through acquisitions and partnerships, they integrated literary platforms, promoting resource sharing and complementary advantages, enhancing the industry’s competitiveness. For example, giants like Tencent and Baidu integrated their literary resources, forming comprehensive industrial ecosystems covering content production, distribution, copyright brokerage, and IP marketing. Today, the market structure has stabilized, with a few large platforms dominating the market.

1.4 Professionalization of Writers and Content Diversification

Under the previous free model, most authors wrote part-time, driven by own interest, and found it hard to receive corresponding returns. With the advent of the paid model, once a work was included in an web novel platform’s VIP system, authors earned revenue whenever a reader paid to read, the direct incentive mechanism of which encouraged authors to focus more on content creation, investing more time and effort in polishing their works. Readers’ willingness to pay also demanded that works possess significant appeal and high quality. The market’s filtering mechanism allowed outstanding online works to stand out, while those of lower quality were increasingly ignored. As a large number of talented authors joined, they received stable and substantial incomes, forming professional teams of writers and editors, and writing gradually became a stable profession. Furthermore, paid reading promoted the diversification of literary styles and genres. Fantasy, historical, urban, and science fiction works proliferated. Many classic works in various genres have accompanied generations from the ’80s, ’90s to Gen Z, enriching their youthful memories.

1.5 Mobile Reading and Market Coexistence

With the widespread adoption of smartphones in China around 2010, the rapid development of mobile internet further accelerated the progress of online literature. Literary platforms launched mobile-friendly reading apps to meet the digital reading needs of users. The scale of China’s digital reading users exceeded 200 million in 2010 and reached 570 million by 2023. The proportion of digital reading users among Chinese internet users surpassed 50% for the first time in 2023. The total revenue of the digital reading market reached 56.7 billion RMB, growing by 22.33%, with general reading, audio reading, and professional reading maintaining stable shares, remaining the dominant forces in industry development.

Today, the online literature market coexists with both paid and free reading models. The paid model attracts loyal readers with high-quality content, while the free model generates revenue through advertisements and free games. The coexistence promotes market diversity and competitive vitality to some extent.

Conclusion: The Revolutionary Significance of Paid Reading

The advent of paid reading is not merely an innovation in business models but a revolution in the history of online literature development. It fundamentally changed the way traditional mainstream literature is produced, published, and consumed. Through market operations, online literature evolved from a marginalized cultural phenomenon into a part of mainstream cultural industry. Years of commercialization experience have proven that the combination of literature and commerce can lead to a win-win situation, providing valuable insights for the future development of the cultural industry.

With the further improvement of China’s copyright protection laws and strict measures against piracy, combined with the self-discipline of the online literature industry, authors’ copyrights and enthusiasm for creation can be effectively protected. The online literature market is expected to develop more healthily and prosperously in a regulated and orderly environment.

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