Developments and Obstacles in Chinese eBook Market

The purpose of this study was to provide insights into the eBook market in China through case studies on eBook companies and a survey research with individual eBook users. The information from three companies, Beijing Superstar Electric Company, Beijing Founder APABI Technology Limited, and Beijing Sursen Electronic Technology Company Limited, showed that the B2B market has been developed due to the huge requirement from organization customers, universities libraries in particularly, and the B2C market is still immature. The information from interviews and relative data revealed that both Superstar and Sursen have serious copyright infringement which is an important problem impeding the further development of the eBook market. The questionnaire explored awareness, purchase, reading and other experiences of eBook end-users. Questions indicated that readers were attracted by the technical advantages including costless to copy, easy to transfer, searchable and easy to store, but did not want to pay for eBooks. Because the computers, especially desktop PCs, were the main device for reading and the CRT displays were massive used while there were few dedicated reading device in the market, many eBook end-users still preferred to read extended passages of text on papers rather than screens. Today the copyrights issue, user acceptance and the reading device are three significant obstacles for eBook industry in China.

💡 Research Summary

The paper provides a comprehensive examination of the Chinese e‑book market, focusing on its historical development, current structure, and the key obstacles that hinder its full maturation. Using the International Digital Publishing Forum’s (IDPF) “E‑publishing Ecology” framework, the author categorizes market participants into roles (originators, intermediaries, end‑users), objects (content, rights, products), interactions, and authorities (technical standards, law, norms). Data were collected through in‑depth interviews with executives from three leading e‑book firms—Beijing Superstar Electric Company, Beijing Founder APABI Technology Limited, and Beijing Sursen Electronic Technology Company Limited—and through a questionnaire distributed online to 320 individual users in September 2006.

The historical narrative divides the market evolution into four phases. The “Primitive Stage” (1995‑1999) began with government‑sponsored CD‑ROM journal projects and the launch of the National Digital Library, establishing the first large‑scale digitisation efforts. The “Trial and Error Phase” (2000‑2001) coincided with the global dot‑com bust; early B2C portals such as people.com and bookoo.com collapsed, demonstrating that pure consumer‑direct models were not viable in the Chinese context at that time. The “Developing Period” (2002‑2004) saw firms pivot to a B2B strategy, selling bulk e‑book licences to universities and public libraries. This shift generated reliable revenue streams and allowed companies to survive the market downturn. The most recent period (2005‑present) is characterised by a stable B2B segment but a still‑immature B2C market, hampered by three inter‑related problems: pervasive copyright infringement, weak consumer willingness to pay, and the lack of dedicated reading devices.

Case studies reveal that both Superstar and Sursen have engaged in extensive unauthorised digitisation, exposing them to legal risk and undermining confidence in the market’s legitimacy. Founder APABI, while employing more robust DRM solutions, still confronts high licensing costs and limited consumer reach. All three firms report that university libraries constitute the bulk of their sales, with contracts often amounting to millions of Chinese yuan for tens of thousands of titles.

The user survey uncovers a paradoxical attitude: 78 % of respondents appreciate the technical advantages of e‑books (copy‑free, searchable, portable), yet 65 % refuse to pay for them. Reading is still dominated by desktop PCs (62 % of users), while dedicated e‑readers have penetration below 5 %. Screen fatigue and the difficulty of reading long passages on CRT monitors drive 71 % of participants to prefer paper. Awareness of copyright issues is high, but the scarcity of legitimate purchasing channels discourages legal consumption.

In conclusion, the Chinese e‑book industry is constrained by three major obstacles: (1) inadequate copyright enforcement and widespread infringement, (2) low consumer acceptance manifested in price resistance and device limitations, and (3) insufficient availability of purpose‑built e‑reading hardware. The author recommends coordinated policy reforms to strengthen IP protection, the introduction of innovative pricing models such as subscription services, and aggressive promotion of affordable e‑readers or tablets. Leveraging the successful B2B experience—through pilot programmes with academic institutions and targeted user education—could catalyse B2C growth. Future research should employ larger, longitudinal samples to quantify the impact of regulatory changes and technological advances on market dynamics.