Reporter Yuan Shimeng, Science Times: In the United States, e-books represented by Amazon Kindle have explored their own digital publishing business logic and profit model (although they have been negotiating with publishers all the time). Facing China’s publishing environment, technical environment (mainly referring to network environment and product maturity) and policy regulations, can you describe what a perfect business model and industrial chain of future Chinese digital publishing will be like? Analyst Sun Peilin, Analysys International: The biggest problem facing China’s digital publishing is the profit-making problem, and the greatest challenge lies in the pirated environment. Under the pirated environment, it is very easy for users to obtain free content. After publishing houses convert content into digital copyright, they usually do not like to sell the copyright content at a relatively low price. Moreover, download volume is small, which means that digital copyright cannot make profits. At present, the government can only regulate the industrial development environment through standardization, protecting copyright from the perspective of improving publishing technology. If the pirated problem is well controlled, digital copyright content will gradually realize profits. In the future, digital content will be relatively cheap. Paper reading materials may remain in the educational market. Other reading materials will gradually appeal to niche groups due to the convenience of electronic reading. Digital copyright content and traditional content will experience parallel development for a period of time. Reporter Yuan Shimeng, Science Times: Currently, all parties including Hanwang, Founder, China Mobile, China Publishing Group, and Shanda Literature are striving to integrate resources and attempt to build a digital content operation platform. What do you think their respective advantages and disadvantages are? Which type of enterprise has more chances to succeed? Analyst Sun Peilin, Analysys International: There are two models in building a content platform, one is purchasing copyright to operate copyright, the other is platform operation where copyright merchants set prices independently. For these two platforms, content providers such as Shanda Literature and Sweet Potato Network generally build the first type of operation mode since they possess more content. Content platforms made by terminal manufacturers such as Hanwang Book City choose the strategy of platformization where content merchants set prices independently. The former type of platforms has strong self-premium ability and is convenient for unified management, while the latter will attract more publishing houses to cooperate and is beneficial to continuously expand content capacity. However, judging from the current situation, platforms with content that attracts readers to read are more advantageous. Currently, the price of e-books is generally one third of that of paper books. However, user download volumes have not reached a large scale. Future development still depends on whether the pirated problem can be solved and whether users develop the habit of paying fees. Reporter Yuan Shimeng, Science Times: While the publishing industry moves towards digitization, what shocks and impacts will it bring to the original publishing industry chain? (Such as for the papermaking industry, printing and publishing industry, writers, book merchants, online and offline bookstores, etc.) Analyst Sun Peilin, Analysys International: Digital publishing increases the opportunity for profit for content sources. However, due to the current industrial environment impact, the profit is not obvious at all. If the property rights environment can be significantly improved, with the continuous improvement of digital publishing technology, more and more readers will digitize content, and publishing houses will also make profits through the operation of digital copyright. From a long-term development perspective, this will have a certain impact and shock on the source of paper books and the printing industry. But judging from the current industrial environment, the development of digital publishing is still very immature. For a long time in the future, digital publishing content will develop in parallel with paper books.