By December 2008, China’s digital publishing sector had generated more than 53 billion RMB (US$7.8 billion) in revenues, an annual figure of 46.42％ higher than in 2007. In 2009, the sector is expected to surpass 75 billion yuan (US$10.9 billion) in overall revenue. The above data was announced on the recently completed China Digital Publishing Fair.

Technology Develops Rapidly

   As of December 2008, 90% of the 579 publishing houses in China had started digital publishing operations and produced over 500,000 titles, an increase of 25% over 2007. An  aggregate total of 30 million copies for those titles had generated revenue of 300 million RMB (US$44 million), 50% higher than the 2007 revenue figure.

     The Digital Publishing Fair, held every two years, attracted the attention of many industry insiders. According to the organizing committee, 52 participants joined the convention this year, up from 33 participants at the previous Fair, while the total exhibition space expanded from 2,500 square meters to 3,000 square meters, 85% of which belonged to exhibitors with reserved spaces of  30 to 100 square meters. Among the noteworthy exhibitors were the China Publishing Group, the Guangdong Publishing Group, Higher Education Press, People's Education Press, the Social Sciences Academic Press, and the Electronic Industry Press.

   During the process of digital publishing, the digital distribution platform has played a necessary role. More and more technology companies emerged as the third party platform and service provider for publisher. Founder Apabi Technology Limited is recognised as one of the biggest players in this field. Founder Apabi has become the only company in Mainland China to reach the rigorous international standards for gaining entry into the International Digital Publishing Forum (IDPF). Having accumulated eight years of experience, Apabi’s technological platform and digital book distribution software now enjoys use in 90% of China's publishing organizations, while the output of new electronic books each year has surpassed 120,000 titles. In terms of educational use, Founder Apabi's electronic book products have appeared in over 4,000 schools, public libraries, educational networks, government bureaus, and other enterprises .

 Chinese electronic reader device manufacturer Hanwang Technology Co., Ltd.'s Vice President Wang Bangjiang noted that Amazon's Kindle wireless reading device dominates the market, selling between 100,000 and 150,000 units in China per month, while Sony reader sells 20,000 to 50,000 and Hanwang's product sells 10,000 to 20,000 monthly. Currently, sales of Hanwang's e-book reader have grown by roughly 5% per month. By the end of 2009, Hanwang hopes to reach an output value of 700 million - 800 million yuan (US$102 million-US$117 million).

Publishers To Explore More Business Models

   As Sun Shousha, Chairman General Administration of Press and Publication (GAPP) sees it, the digital publishing sector in China now faces some  challenges such as lack of effective  research and related knowledge, shortages of funds, and the publishers have not established a successful business model to profit.

   Ren Zhang, the Digital Publishing Research Director in the Chinese Institute of Publishing Science has pointed out that the largest change over the past five years of development has occurred with the strengthening and expansion of digital technology and product lines. Currently, technology itself does not pose a problem so much as the fact that publishing companies continue their vigorous search for a transition with new profit models.