Shanda to Bring Chinese-style E-publishing to the US

By Wenguang Huang

Shanda Literature Ltd (SDL), one of China’s largest online publishers of reader-generated literary works, is planning to set up a US subsidiary in San Francisco and launch or acquire an English-language literary website that specifically targets mainstream American writers and readers.

Hongli Zhou, SDL’s chief copyright officer (CCO), told Publishing Perspectives the US expansion is part of the company’s global development strategy. “We want to test our unique business model in the US which is a mature and important market for digital publishing and a leader in the global publishing industry,” said Zhou. “We hope to create an open and culturally-appropriate literary platform that features diverse literary styles and values, and appeals to a cross section of the American public.”

SDL also intends to bring English translations of popular Chinese fiction to Western readers through its US site. “We’ll provide a valuable channel for American readers to access the best Chinese contemporary fictions in China and at the same time enable Chinese writers to enter the Western market.” At the moment, SDL is working with US consultants to conduct further market research.

At present, SDL operates six literary Web sites in China. Writers can register with Shanda and post their work on any of the six sites they choose. Readers accessing the sites can read the first half of a book for free and then pay a small charge for the rest of a book. The company splits the profits with the author.

Collectively, Shanda claims a database of three million user-generated titles. In all, some 930,000 writers have contributed to Shanda’s sites. For titles that attract the most number of readers, Shanda works to publish them as traditional books and then adapt them for other types of media, such as films, cartoons or games.

Acknowledging the differences in culture as well as the publishing environment between China and the US, Zhou notes that Shanda’s US subsidiary will be managed by Chinese executives and technical staff who are well versed in the Shanda operations, and will hire local editors, managers, engineers and sales people who are experts on the US market.

Citing the American National Basketball Association’s success making inroads into China, Zhou is confident that the Shanda’s commercial model will work well in the US. “All good things will eventually be accepted, no matter where they are,” he said.
Zhou will discuss the Shanda business model at a session entitled “Bringing Literature Online and Comparing Experiences between China and the US,” today from 2:00 to 3:00 pm, in Room 1E02.