Chinese online literature experienced significant growth last year, according to a recent report, with its overseas popularity continuing to expand robustly, accompanied by accelerated AI development.

A release event and seminar for the 2023 Report on the Development of Chinese Online Literature is held in Beijing, Feb. 26, 2024. [Photo courtesy of CASS]

The "2023 Report on the Development of Chinese Online Literature" was unveiled Monday by the Institute of Literature under the Chinese Academy of Social Sciences (CASS). According to the report, China's online literature reading market grew to 40.43 billion yuan ($5.62 billion) in 2023, marking a 3.8% increase from the previous year. The market value of online literature intellectual property (IP) franchises also surged to 260.5 billion yuan, an increase of nearly 10 billion yuan from the previous year. Combined, these sectors have driven the overall market value of the online literature industry to 300 billion yuan.

The report also highlights that the number of online literature authors in China has risen dramatically to 24.05 million, with over 2.25 million new authors entering the field in 2023. The total collection of online literary works has expanded to 36.2 million, with 4.2 million new works being published in 2023. Furthermore, the user base for online literature has grown to 537 million, suggesting that nearly half of all Chinese internet users engage with online literature. This marks a year-on-year increase of 9%, with 45 million new users joining in 2023.

The report emphasizes the significant increase in the overseas reach and influence of Chinese online literature, positioning it alongside online games and film and television series as the three mainstays of China's "cultural exports." The data reveals that the international market size for Chinese online literature exceeds 4 billion yuan. This includes approximately 410,000 overseas online writers, consisting of foreigners and overseas Chinese, who publish their works on international platforms owned by Chinese entities. There are about 620,000 original works by these international authors available on such platforms. Additionally, these international platforms have around 230 million overseas visitors from more than 200 countries and regions, with the United States hosting the largest number of readers.

In 2023, over 1,000 Chinese online literature IPs were authorized for overseas publication through collaborations with 66 international publishing entities. Furthermore, over 1,500 comic works were released online internationally, with 123 of these works garnering over 10 million views each. New animation episodes derived from Chinese online literature were uploaded to YouTube at an average rate of one episode per day, collectively amassing over 270 million views throughout the year. In addition, over 100 audio works reached international audiences, with the most popular work achieving 108 million plays.

Amidst booming development and a favorable environment, Chinese-language IPs are gradually making their mark on the global stage. For instance, the second season of the TV series "Joy of Life" became the first Chinese drama to surpass 10 million pre-subscriptions online, with Disney purchasing its overseas exclusive distribution rights. The TV series "Romance on the Farm" topped the charts on iQiyi's sites in Thailand and Japan. Additionally, China Literature Limited launched "Battle Through the Heavens," its first literature IP-adapted game to be independently distributed overseas, including Malaysia, Indonesia, and Thailand, leading to a significant increase in new players.

The report suggests that in 2023, both the efficiency and quality of film and television adaptations of online literature IPs have improved. According to the list of popular new drama series in 2023, 60% of the top 20 works were adapted from online literature. The animation and sci-fi genres have become significant drivers for amplifying the influence of IPs, with 50% of the works in Tencent Video's top 10 classic hits list in 2023 being animations adapted from online literature. Micro-dramas and short dramas have emerged as trends, unlocking the value of mid-tier IPs and offering a more efficient channel for IP visualization within the ecosystem. Therefore, the trend toward high-quality short drama productions is seen as inevitable. Notably, the report predicts 2024 will be a breakout year for film and television adaptations of popular IPs in the male online literature category.

Online literature has become a significant channel for telling China's stories, increasingly reflecting cultural confidence and depicting China's development, thus setting new creative trends. In 2023, online literature authors skillfully integrated elements of China's traditional culture into various themes, including history, contemporary life, and science fiction. This blend showcases the inventive adaptation and modern evolution of China's traditional culture, further advancing its seamless incorporation into various genres.

The annual report also delves into the impact of artificial intelligence (AI) on the online literature sector, indicating that AI is initiating a transformative and profound shift in content production methods. For example, translation efficiency has surged nearly a hundred times while the average cost of translations has plummeted by over 90%, resulting in popular AI translations of online literature like "Mythical Era: I Evolved into A Stellar-Level Beast." Following the release of the first major online literature AI model, Yuewen Miaobi in July 2023, there is a growing consensus within the industry that AI-generated content is assisting online literature authors in enhancing their creative efficiency.

Yang Chen, vice president and editor-in-chief at China Literature Limited, stated that AI's unique advantage in online literature is not just as a medium or carrier but also as a tool for creativity and a booster of capabilities. "AI's expanding functions will bring significant added value to the creation of online literature. In the future, as 'AI+IP' technologies mature and integrate into the IP development workflow, they will greatly unleash the potential for IP development and promote the upgrading of the online literature ecosystem."

The CASS report highlights that driven by three key trends — premium content production, accelerated IP conversion, and deeper globalization — Chinese online literature represents a dynamic example of mass participation and international collaboration, effectively showcasing the originality of Chinese culture. It is increasingly becoming a vibrant cultural emblem for telling China's stories and amplifying China's voice worldwide. Furthermore, the report specifically mentions that China's active advancement of co-governed copyright protection is speeding up the legitimization of online literature through the combined efforts of policy, regulation, industry self-regulation, and the community of readers and authors. This concerted approach is crucial for ensuring the healthy and sustainable growth of online literature and its distribution within China and around the world.

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