China Book & Digital Publishing Market Analysis

Beijing OpenBook CEO: Jiang Yanping CEO: James Bryant

 Contents

01 02 03 04

Chinese Book Chinese Digital Chinese Digital China Discovery

Publishing Publishing Summary Publishing - Solutions
Summary Highlights
 01
China Book Publishing Summary
Overall Retail Market Growth

Market Revenue Growth

(Billion) 70.1

● Revenue Growth of 12.3%

62.4

2015 2016
 Physical bookstore online bookstore growth Whole retail market
-2.23% 30.13% 12.3%
scale basically stable growth

2011-2016 physical bookstore sales status 2011-2016 online bookstore sales status

Billion Billion
RMB 34,4 RMB 36-37
34,3
27-28
33,8
33,5 33,6 20-21
33
16-17
12-13
8-9

2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016
Active Titles in 2016

1,750,000
Active Titles

4.31% 210,000
year-on-year growth rate New titles introduced in 2016
Books on sale are growing fastest in Online Bookstores

Million Million
1.45
1.36 1.37 1.35
1.32
1.25 1.27 1.23
1.14
0.98

2011 2012 2013 2014 2015 2016 2013 2014 2015 2016

PHYSICAL BOOKSTORES ONLINE BOOKSTORES

 Science and Art Show Negative Growth

Year Growth Rate

28,84%
The Art genre show
negative growth due to
the coloring best seller in 16,10%
13,53% 12,91% 12,30%
2015.
8,38%
6,66% 5,66%
The Science genre show
-2,31% -13,50%
negative growth due to
“A Brief History of Time”
in 2015 .

2016 Sale Growth Compare to 2015

(Retailing market)
Children and Social Science are the Two Giants in Nominal Sale

Revenue Breakdown Active Sale Title Type

Chinese Book Retail Classification in 2016

 Average number of books read each year

8
7,78 7,84 7,86
7,25
7
6,74 Total of per capita books
6 5,77
4,98
4,77 4,56 4,58 4,65
5
4,25 4,35 4,39 The number of per capita
4 paper books

3
3,22 3,26 3,21 The number of per capita
2
2,35 2,48 e-books
1
1,42
0 0,73
2010 2011 2012 2013 2014 2015 2016

数据来源：中国新闻出版研究院公布的全国国民阅读调查
 Bestselling Printed Books
top sellers (Jan.2017-Apr.2017)

No. 书名 Title 作者 Author No. 书名Title 作者Author

东野圭吾作品.解忧杂货店 东野圭吾 罗广斌,杨益言
1 11 红岩 Hongyan
Dispel melancholy grocery store Higashino Keigo Luo Guangbin
东野圭吾作品.白夜行 东野圭吾 人类简史:从动物到上帝 尤瓦尔·赫拉利
2 12
Journey Under the Midnight Sun Higashino Keigo Sapiens: A Brief History of Humankind Yuval Noah Harari
卡勒德·胡赛尼 从你的全世界路过:让所有人心动的故事
3 追风筝的人 Kite Runner 13 张嘉佳Zhang Jiajia
Khaled Hosseini I belonged to you
克莱儿·麦克福尔 小猪佩奇(限量珍藏版)(套装10本书+1张DVD) 英国快乐瓢虫出版公司
4 摆渡人Ferryman 14
Claire Mcfall Peppa Pig Ladybird
周梅森 巴学园系列.窗边的小豆豆 黑柳彻子
5 人民的名义 In The Name of People 15
Zhou Meisen Totto-Chan:The Little Girl at the Window Kuroyanagi Tetsuko
未来简史:从智人到神人 Homo Deus: A 尤瓦尔·赫拉利
6 16 好吗好的 Goodwill 大冰Da Bing
Brief History of Tomorrow Yuval Noah Harari
东野圭吾作品.嫌疑人X的献身 东野圭吾
7 17 平凡的世界(共三部) Ordinary World 路遥Lu Yao
The Devotion of Suspect X Higashino Keigo
中英文版儿童情绪管理与性格培养绘本.妈妈我
8 活着 To Live: A Novel 余华 Yu Hua 18 胡媛媛 Hu Yuanyuan
能行 Mom, I can do it
天才在左 疯子在右(完整版) Genius on the 中英文版儿童情绪管理与性格培养绘本.做最棒
9 高铭 Gao Ming 19 胡媛媛 Hu Yuanyuan
Left, Lunatic on the Right 的自己 Do my best

中英文版儿童情绪管理与性格培养绘本.勇敢做
10 我们仨 Us Three 杨绛 Yang Jiang 20 胡媛媛 Hu Yuanyuan
自己 I am brave
 02
China Digital Publishing Summary
 Today, China has over 731 million Internet users.

Netizen（Million） Internet penetration

1000 60,0%
53,2%
900
the global average of 50.1% in 2016 50,3%
47,9% 50,0%
800 45,8%
42,1%
700 38,3% 731 40,0%
34,3% 689
600 649
618
28,9% 564
500 30,0%
513
400
22,6% 457
16,0% 384 20,0%
300

10,5% 298
200
210 10,0%
100
137
0 0,0%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

数据来源：CNNIC发布《中国互联网络发展状况统计报告》
Digital Publishing Contents

China Digital Publishing

e-book digital newspaper online education

blog web Journal online music online comics

China Digital Publishing Revenue Growth

China digital publishing revenue

（Billion）
36,5

 Year Market revenue

19,3
Growth 89% in 2015 12,6 14,2
6,9

2011 2012 2013 2014 2015

Online education, Online music and E-book have developed into the big
three of the digital publishing industry

The Big Three in 2015

e-book 13%

49%
online music 15%
online education
 Most sectors of digital publishing is on the rise, digital newspaper and blog market
weakening. Online education outperformance in 2015.

Billion RMB 18,0 online education

online music
5,5
E-Book
4,9
4,4 online comics
1,6 web Journal
1,2 blog
1,0 digital newspaper
2011 2012 2013 2014 2015

数据来源：中国新闻出版研究院发布的《**—**中国数字出版产业年度报告》
 03
China Digital Publishing - Highlights
 PC pay loss of 4.32 billion yuan
piracy
(Iresearch data in 2014)
mobile end pay loss of 3.45 billion yuan
In 2016,the 12th China (Shenzhen)
international cultural industry fair, more than
20 undertaking units of "digital copyright
protection technology research and
development project" , with China academy
of press and publication, to sign a letter of
intent for digital copyright protection
technology services.
 Cellphone Netizen（Million） ratio of cellphone users in netizen

700 95,1% 100,0%

90,1%
85,8%
695 90,0%  95% of people with mobile phones
600 81,0%
74,5% 620 80,0%
use them to access the Internet.
69,3% 557
500 66,2% 70,0%
60,8% 500  Up 5% to 2015, and the proportion of
400
60,0%
mobile Internet users rising further.
420
50,0%

300
39,5% 356
40,0%
303
200 24,0% 233 30,0%

20,0%
100
118 10,0%
50
0 0,0%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Quantity of Online Time

Average number of hours spent online per week

25,9 26,1 25,6 26,2 26,5 26,4

25
21,7
20,5

In 2016, Chinese natizens

per capita weekly Internet
time is 26.4 hours, with
2015 basically flat.

2012,12 2013,6 2013,12 2014,6 2014,12 2015,6 2015,12 2016,6 2016,12

Two largest Categories of Mobile Reading

usage rate of mobile users in 2016

43.7%
82.2%

user number in 2016（million） 571

304

Mobile network literature Mobile network news

eBook Most Popular Genres (in 2016)

officialdom game; 5,80% others; 0,30%

novels; 7,00%
campus
literature;
7,60% urban
romance;
science fiction;  In mobile reading contact group,
7,60% 23,50%
classical the most popular type of eBooks
motivational literature;
books; 10,70% 17,20% for "urban romance", followed

studio by " classical literature",

history and
entertainment;
military; 15,40% accounted for 23.5%, 17.2%
11,60%
respectively.
fantasy; 12,40%
life sciences;
Suspense 15,10%
reasoning; martial arts;
13,00% 14,80%
Cost of Mobile Reading (in 2016)

10 yuan and 10-20 yuan;

below; 5,70% 3,90%
20-30 yuan;
3,40%
30-50 yuan;
2,90%

 In 2016, mobile reading contact groups 50-100 yuan;

2,50%
per capita cost is 16.95 yuan, has risen 100-200 yuan;
2,80%
from 11.19 yuan in 2015. Never pay;
74,80% 200 yuan and
 Among them, 74.8% of mobile phone above; 4,00%
readers have never paid.
 The origin and development of China network literature
The first year of IP outbreak
ChineseAll login the shenzhen stock
Business model appear ‘dushu.qq’
Qidian: VIP readings pay exchange
begin pan-entertainment
Tianya : BBS to provide garden for ‘dushu.qq' and Cloudary, set up China
industry layout
works published, gathered flow Reading group
'aliwx' established
stage ChineseAll iReader established
established，network maturity
literature awards to
appear overflow
Cloudary established, into copyright
Rascal CAI "The First operation, integrated the Chinese pan-entertainment industry
Close Contact" open interactive entertainment industry outburst
the era of China upsurge and cultural creative industry
network literature
‘book.baidu’ create literature
Qidian established, more industrial chain.
developing websites provide writing ‘dushu.qq’ acquiring Cloudary
beginning platform for authors

1998 2000 2002 2003 2008 2013 2014 2015 2016 Year
 China Network Literature Market Revenue

10,0

 With the rapid development of network 9,0 70,00%

9,0

literature market, 2016 network literature 8,0 67,10%

7,0 50,00%
market, is expected to reach 9 billion 7,0

6,0 5,6
yuan, up 28.6% year-on-year. 30,00%
5,0 4,6
28,57%
 Internet giants compete to distribute 25,00%
4,0
20,95% 10,00%
network literature market, hope that 3,0
2,8
through product adaptation of network 2,0
-10,00%

literature, expand into the film and 1,0

television works, mobile game, anime, etc. 0,0 -30,00%

2012 2013 2014 2015 2016e

China Network Literature User Scale

In 2016, the network literature user scale up to 333 million, an increase of 36.45 million year on year,
accounting for 45.6% of the overall netizens.
48,0%
450
45,6% 46,0%
400
43,1% 44,0%
350 43,7%
41,8% 42,0%
300 333
297 304 40,0%
250
259 38,0%
200

36,0%
150

100 34,0%

50 32,0%

0 30,0%

2015 2016
Network Literature Users（million）
Mobile Network Literature Users（million）
usage rate of internet users
usage rate of moblie users
Fragmentary Content Consumption is Becoming a Trend

 Busy lifestyles combined with being

“always connected” has resulted in
evolving preferences to engage in
reading for shorter durations of time.
 Emerging step by step with this are
fragmentary payment business models.
 China audio reading market volume
(RMB)

2.2 billion 4.2 billion

In 2016 In 2018
expect

China mobile audio APP user total scale

210million
16.7%
In 2016
Potential: the users of audio books are broad
Monthly active users
100 million female
Nearly 70% of the digital reading 55.1%
users used audio books

High school degree or above

87.1%
Use more than 10 times monthly
24.2%
Age of 14 to 45
92.9%
Especially for the scene,
such as driving
a car, Willing to pay
cleaning the house 65.3%

数据来源：中国音像与数字出版协会发布《2016中国数字阅读白皮书》
 04
China Discovery Solutions
Discovery Solutions – Enhanced Index
Discovery Solutions - Keywords
Discovery Solutions – Translated Keywords
Discovery Solutions – Contextual Recommendations
 Thank you!

Yanping Jiang jyp@openbookdata.com.cn James Bryant bryant@trajectory.com