novelones Chapter 384 Capital + Free = Listing
Chapter 384 Capital + Free = Listing
In October 2004, Chen Shoufu, who had just successfully listed in the United States, announced a piece of news.
Shanda fully acquired the largest paid reading platform - Dingmin Novel Network for US$200!
The predecessor of Terminal Novel Network was an original literary association. After transforming into a personal website, it began to experiment with the paid VIP model.
Before it adopted the charging model, Huanjian Bookstore was the real overlord among novel websites.
After the success of the terminal novel adopting a fee-based system, countless great writers flocked to the terminal novel website to start updating.
Among them are the well-known Sugar Add Three Spoons and others.
Because masters also need to support their families. At this time, masters who earn tens of millions per year are no different from ordinary people. It is very tempting for them to earn more than [-] per month.
With the participation of many great masters and the dividends brought by the charging system, Dingmin Novel Network has developed rapidly and achieved a series of impressive results.
But at this time, the founding team did not know how much energy Dingmin Novel Network would explode in the future.
Faced with the temptation of money from capital, they sold Midian Novel Network for 1500 million yuan, making Midian Novel Network a wholly-owned subsidiary of Shanda.
Shanda retained their positions, and the former boss, Mr. Wu, still serves as the president of Shanda Literature.
Mr. Wu was also feeling uneasy at this time, because the richest man Chen had promised him that he would also acquire many novel websites and build Shanda Literature into an unprecedented Internet novel platform.
The goal is to be listed on the US stock market!
Nowadays, both NetArt and Shanda have made great achievements in the US stock market, and Shanda's momentum is at its peak. There is no opponent, and listing on the US stock market is a great attraction for the founding team.
At this time, Mr. Hou, who despised online literature as street stall literature, was still hesitant to move forward, so Mr. Wu and the founding team were extremely supportive of the big boss.
In particular, Mr. Chen's advanced ideals of creating Oriental Disney are enough to make all intellectuals work for him.
Looking at the terminal novel network that had moved into the new building, Chen Shoufu, who had just recovered from a serious illness, also showed a happy smile.
"Mr. Wu, Chief Editor Bao, I want to talk to you about something."
Seeing the big boss being so solemn, Mr. Wu and Editor-in-Chief Bao hurriedly followed.
They found a conference room and chatted about future development.
"What, boss, you want us to make all novels free?"
"Then how can we retain the author?"
Both of them strongly resisted the free system. They relied on the charging system to defeat the big brother of Huanjian Bookstore. Why should they go back to the old path?
"I understand your thoughts, but I think users have the right to choose to pay or read with ads. There is no conflict between the two, and our free service is not completely free. Advertisements will be inserted into the article, and the author will get a share of the advertising revenue!"
After hearing this, the determined expressions on the two people's faces began to waver. The model of attracting new readers for free and obtaining considerable profits through advertising did indeed sound more attractive than paying.
You must know that reading a genuine book with a million words will cost readers hundreds of yuan. At this time, the average monthly salary per capita is only 700 yuan. It is destined that paid reading is an entertainment activity that only a few people can enjoy.
The public reads their novels through pirated websites or pirated physical books branded by Huang Yi and Jin Yong.
The publishing business that Huanjian Bookstore relies on has been greatly impacted.
At this time, piracy in the Dragon Kingdom was very rampant. All domestic stand-alone games were wiped out due to pirated discs. They thought that the VIP charging system was also forced out.
But if an advertising model is added to allow pirated users to become legitimate users, their website’s daily and monthly active users, as well as user stickiness, will naturally rise sharply.
Not only does the website have considerable advertising revenue, but great authors can also earn higher profits by relying on the influx of pirated readers.
Thinking of this, they couldn't help but start to waver.
Seeing this, Mr. Chen continued to say in a persuasive manner:
"We will also use games to attract traffic to novel websites. I guarantee you that the number of users of Dingmin Novel will exceed 2000 million within two years, and the monthly active users will exceed 200 million!"
"Think about how much advertising fees a website with a monthly activity of 200 million can get. Do you still need to mortgage your house to pay for authorship?"
Selling a house to raise royalties for the author was the most difficult time before the novel was acquired. Naturally, they didn't want this to happen again.
“The most important thing is reader stickiness. You should know that many readers, after finding a good book at the end, will immediately search the title to find a pirated copy, and then start reading.
And after we make it free, they can get a better reading experience than piracy, and they can also support their favorite great authors. They will naturally choose to stay on the genuine website where they can interact with the author. "
Speaking of this, the two founders began to feel that if Shanda helped promote and attract traffic, and relied on the excellent quality of the work at the end, their website could reach a higher level.
Speaking of this, Chen Shoufu also revealed an inside message to them.