Cloudary

About Cloudary

Cloudary, formerly known as Shanda Literature, was a pivotal force in China's digital publishing landscape. Established in 2008 as a subsidiary of the Shanda Group, founded by Chen Tianqiao, Chrissy Luo, and Chen Danian, the company aimed to revolutionize the content creation process. It addressed the challenge faced by the entertainment industry of finding compelling content by creating a platform for online serialization, thus transforming a grassroots movement into a structured industry.

The company's business model was centered on user-generated content, where stories were published chapter by chapter, fostering a dynamic interaction between authors and readers. This model, pioneered by Qidian.com (which Shanda Literature acquired), allowed for real-time feedback, enabling popular content to flourish. Cloudary monetized its vast library through multiple revenue streams, including paid subscriptions for premium content on PC and mobile, content licensing for TV, film, and game adaptations, offline publishing of novels and comics, and online advertising. By 2012, its platform boasted 1.6 million authors and 6 million titles, attracting nearly 67 million monthly unique visitors.

Through strategic acquisitions of major literary portals like Qidian.com, hongxiu.com, and readnovel.com, Cloudary consolidated its market position. It also expanded its ecosystem by investing in an audiobook site (tingbook.com), a multimedia content provider (zubuent.com), and print publishing companies. In a significant market development, Cloudary was acquired by Tencent in a merger confirmed in January 2015. This led to the formation of Yuewen Group (China Reading), combining Cloudary's extensive content library with Tencent's massive user base and distribution channels, effectively creating the largest online book publisher in China. Before the merger, Cloudary had attempted a U.S. IPO in 2011 but later withdrew the application in 2013.