China builds IP ecosystem through online novels, micro-dramas, and games

China’s online novels, micro-dramas, and video games, collectively referred to as the ‘new three pillars’ of Chinese cultural exports, have now developed into a fully integrated intellectual property (IP) development ecosystem, according to academics and industry figures speaking at a public dialogue during the recently concluded 34th National Book Expo. ‘In the past, online literature, online dramas, and video games each went their own separate ways,’ said Zeng Fanwen, executive director of the cultural industry research institute at Renmin University of China, at the expo held in Hangzhou, capital of Zhejiang Province in eastern China. Now, the three sectors form a powerful synergy, with online novels serving as the content source, micro-dramas acting as a market testing vehicle providing rapid market validation, while video games create long-term and in-depth value, Zeng added. ‘These ’new three cultural pillars’ are not three separate industries, but rather a fully integrated IP development ecosystem,’ said Shen Shicheng, a publicity official from Zhejiang Province, echoing Zeng’s view. Chinese online novels have reached nearly 400 million users in more than 200 countries and regions, generating overseas revenue of 5.64 billion yuan, or approximately 830 million US dollars, according to Wang Zhongjie, general manager of overseas business at Yuewen Group, a Chinese cultural company. A number of online novels have built enormous global fan bases, while also becoming a rich content source for adaptation into micro-dramas and video games. As Chinese video games begin to penetrate overseas markets, the cultural stories woven into them are increasingly being embraced by international players. ‘Genshin Impact’ has generated more than 4 billion US dollars in revenue, while introducing various forms of China’s intangible cultural heritage to a global audience. Meanwhile, ‘Black Myth: Wukong’, inspired by the classic Chinese tale ‘Journey to the West’, has won numerous international awards.