……is the cash cow for Chinese company Shanda Literature Ltd, a
subsidiary of Shanda Interactive Entertainment.

The company’s business model is simple: read the first half
of a book online for free, and if you want to know the rest
(which usually is the case if you have read that far) you need
to pay for it. Revenues are split with the stories’ authors.

In China, this proves to be successful. According to Shanda
Literature CEO Hou Xiaoqing, the company now has cash reserves
of $1.8 billion, with 800,000 authors creating up to 80,000 new
pages of content per day, he said at the Frankfurt Book Fair.

On web portals such as www.qidian.com and www.hongxiu.com,
customers can chose from a huge variety of stories, and the best
even make it into print.

Xiaoqing said the company has also teamed up with China
Mobile to distribute literature via mobile phones, a
business model that he said was “very promising”.

He added it was now for Shanda to explore whether those
business ideas also work in other parts of the world, including
Europe.

Could this be a business model for other publishing companies as well?

What do you think?

You know how it is when you take a trip to Target: You’re going to buy just that ONE THING that you need, and you’re going to keep it cheap. As you leave the store, you wonder how you dropped hundreds of dollars on things that you didn’t realize you needed until you walked into the store.

Target is hoping to spawn a similar phenomenon on its website, where it has begun offering a magazine newsstand. Rather than starting from scratch, it has signed on Zinio, a digital publishing company that offers magazines and books from more than 350 publishers.

Zinio will sell electronic versions of magazines on a page on Target’s website, either as single editions of current and older issues, or as annual subscriptions - usually at a discount. People can read them in a Web browser version or through an application that Zinio offers for download. This is similar to what they’ve done on other websites, like the one operated by Barnes & Noble.

Yes, you can already look at online versions of magazines, Zinio Chief Executive Richard Maggiotto said in an interview. This is different, however, he said: “It’s a high-fidelity, robust magazine.” In other words, these titles, ranging from Elle to Woman’s Day to Seventeen, are meant to look — if not feel — like the print magazines they are replacing. Zinio and Target will share the revenue they get from each sale.

Maggiotto declined to reveal specific goals, but said that he would be happy to see 1,000 or more new subscriptions (a month) come in during the first year of the Target partnership. So far, he said, Zinio sees about 60 percent of its magazine sales coming from archival or current issue sales, and about 40 percent from subscriptions.

This might not be such big news on most other days, but it is coming after some cataclysmic events transpired in the magazine industry. With ad sales suffering, big publishers such as Conde Nast are cutting workers and titles, making some media experts wonder whether the good times are over forever. Digital revenue has failed to make up for print revenue losses, just like in the newspaper world. But every little bit helps, right? Apparently so. Maggiotto would not say who Zinio’s next partners are, but said that “there are 10 more in the queue.”

(PS: Apologies to Tom Waits for stealing one of his lyrics for the sake of a headline. It’s from “Nighthawks at the Diner.” The photo is all Reuters)

Some say the Frankfurt Motor Show, which started on Sept. 15, has lost a bit of its lustre amid the crisis that has hit the global car industry with an economic baseball bat. But there are still people out there who are willing to shell out the big bucks to go see the new car launches. One lucky bidder, identified only as i***l on www.ebay.de paid 158 euros ($232) for two tickets to get into the car show today, days before other mortals are allowed to pass through the big white doors leading into the halls of the show. There are 150 separate auctions for tickets to the car show, with sale prices starting at 7 euros for tickets valid on the days that are open to the public, which start on Sept. 19. So it looks like there are still plenty of people out there who are just wild about cars even though the government has to pay tightfisted consumers to buy a new one with their cash for clunkers programme. Would you pay that much to get a glimpse of  what the automotive industry has in store before others can?

Here are some of the day’s top stories in the media industry:

U.S. business magazines face a shakeout (Reuters)
Robert MacMillan writes: “Business news publishers rubbed their hands in glee when the financial crisis grabbed headlines last fall, saying the meltdown would deliver a windfall blown in by widespread interest in their stories. It did not turn out that way. Appetite for news does not always translate into revenue, especially at a time when blogs, wire services such as Bloomberg and Thomson Reuters and other outlets crowd into news analysis territory that the big magazines had long claimed.”

McClatchy quarterly profit rises on cost cuts (Reuters)
“U.S. newspaper publisher McClatchy Co reported higher quarterly income on Tuesday because of cost cuts, pushing shares up as much as 67 percent, even as advertising revenue fell by nearly a third. McClatchy, publisher of The Miami Herald and Sacramento Bee, also said it reduced the amount of debt that it owes and sought to reassure investors that it will not violate the terms of its lending agreements,” reports Robert MacMillan.

Economist Group Buys Congressional Quarterly (WSJ)
Kevin Kingsbury writes: “The deal, terms of which weren’t disclosed, will create a new company called CQ-Roll Call Group. Roll Call is owned by the Economist Group, the London-based publisher of its namesake magazine. Roll Call is buying Congressional Quarterly from Times Publishing Co., whose primary operations is the St. Petersburg Times and related assets.”

James Murdoch Approved Payment to Phone Tap Victim (Bloomberg)
“James Murdoch, the son of News Corp. Chairman Rupert Murdoch, agreed to a 700,000-pound ($1.1 million) payment to a victim of phone-tapping by the News of the World, the editor of the company’s newspaper said,” writes Robert Hutton.
> Ex-Murdoch paper editor says phone taps not policy (Reuters)

Conde Nast September Monthlies Lose 1,680 Ad Pages (NYO)
“Vogue tumbled to 427 pages total, down 36 percent from last September. W is down 53 percent; Allure and Gourmet are down 51 percent; and Self is down 50 percent. Vanity Fair came in just above average for the company, dropping 36 percent,” writes John Koblin.

In other news:

• Arbitron Q2 profit up; cuts FY rev view; shares fall (Reuters)
• Meredith Invests In Mobile Firm Hyperfactory (Mediaweek)
• Journal Communications posts 2nd-quarter loss (AP)
• Vogue To Get Its Own Web Site, Too, After Condé Launches GQ.com (Business Insider)

Here are some of the day’s stories on the media industry:

‘Tonight Show’ Audience a Decade Younger (NYT)
“In Mr. O’Brien’s first month as host, the median age of “Tonight Show” viewers has fallen by a decade — to 45 from 55, a startling shift in such a short time. This audience composition means advertisers can now address almost exclusively young viewers on “Tonight,” and NBC is already contemplating a shift in how it sells the show,” writes Bill Carter.

Springer’s daily Welt dreams of going international - again (Reuters)

“German publisher Axel Springer plans to launch an international weekly edition of its flagship daily, Die Welt, in a 48-page tabloid format starting February 2010. Springer is still mulling distribution options but the paper will likely be available from airlines,” writes Nicola Leske.

Just the Messenger: Mediaite.com Focuses on Celebrity of Journalism (WP)
On the newly launched website, Howard Kurtz writes: “Mediaite paints with a colorful palette, even if its hues will appeal mainly to journalists and those who obsess over them. By hiring bloggers who worked for Mediabistro and the Huffington Post, Abrams has put together a sassy critique of media missteps and foibles, an overall take not driven mainly by ideology.”

Cubs sale finalized for TribCo (Crain’s)
“Tribune Co. has finalized a deal to sell the Chicago Cubs to a bidding group led by bond salesman Thomas Ricketts. Documents describing the fully financed deal were sent to Major League Baseball over the weekend, a source familiar with the negotiations said Monday. The value of the deal is between $850 million and $900 million, the source said.”

Food Network magazine is media’s next wave (MarketWatch)
“Hearst executives are very pleased with the magazine’s progress. The company started out by printing 300,000 copies last fall. Hearst now projects the publication’s rate base, the circulation figure that publishers promise to advertisers, will climb to 900,000 later this year and to 1.1 million in 2010,” writes Jon Friedman.

Hulu plans September bow in U.K. (Variety)
Steve Clarke writes: “Hulu, co-owned by News Corp., NBC Universal and Providence Equity Partners, is believed to be offering broadcasters equity stakes in the U.K. service plus a share of online advertising revenues. (Disney has a deal pending to become a co-owner.)”

In other news:

• Two new blogs offer daily tips for business journalists (BusinessJournalism.org)

• Behind the launch of the Rocky Mountain Independent (Westword)

• Talking Point$ Memo (CJR.org)

German publisher Axel Springer plans to launch an international weekly edition of its flagship daily, Die Welt, in a 48-page tabloid format starting February 2010. Springer is still mulling distribution options but the paper will likely be available from airlines.

Die Welt is a conservative daily founded in 1946 by British occupying forces after the Second World War and acquired by Axel Springer in 1953. It has around 690,000 readers.

The thinking at Springer Verlag is that Die Welt could fill a void for non-German readers who are interested in news from continental Europe, while attracting lucrative new advertising customers.

That’s an interesting idea, considering the current dismal state of newspapers and remembering past attempts of others to attract English readers.

In April 2000, the F.A.Z. launched an English edition as a supplement in the International Herald Tribune - in what the New York Times called an opening up of “the first-class coverage of one of Germany’s best newspapers to the English speaking audience”.  That project was a first in German publishing.

But just two years later, F.A.Z. was forced to reduce it to a weekly edition and eventually had to close the project down altogether as money grew tight. 

Der Spiegel’s foray into the Anglophone world never got past special English editions on single topic issues despite dreams of an “English Spiegel”. However, it has been successful with its English website. 

So, Springer’s loss making Welt aims to prevail where the country’s most reputable newspaper and the country’s leading news magazine failed.

Good luck and let’s remember this: Die Welt tried to address English speaking readers before. In October 1999, its Berlin section had one page in English and in April in the following year, an English page was added to its national edition. 

It never did catch on.

One day after Facebook CEO Mark Zuckerberg said the social networking site would stand by its revised terms of use, he capitulated and said Facebook would return to its old terms while “we resolve the issues that people have raised.”

Zuckerberg said Facebook would work on a “substantial revision.” In the meantime, members can voice their opinions — or as the case has been, give vent to their outrage — through “Facebook Bill of Rights and Responsibilities,” a group created by the networking site.

Here’s a sampling of the 4,229 wall posts so far:

“you guys are a major corp and you think im to believe for a second that you would not share all of our information to make some money for yourselves……PLEASE TELL US ALL ANOTHER LIE!!!!!!!!!!” (James Stull, Montreal, QC)

“The TOS also needs to address the way businesses and professionals are using facebook. If publishers, theatre groups, musicians, art galleries & museums, writers, comedians, artists, etc are setting up groups or fan pages and posting teasers, videos, images and the like, how is that copyrighted intellectual property protected?” (Martha Mihalick, New York)

“Simply, do away with any BS and get down to terms that protect people’s rights and privacy and let’s move forward with a Facebook that everyone can be proud to be a part of. It always amazes me when a small company goes big, how quickly they proprietors can lose there humanity and moral judgement.” (Silvana Scotto Zangri, New York)

Evidently, it’s hard to tout your 175 million members and then ignore their wishes.

Keep an eye on:

• The Mobile World Congress in Barcelona, where the talk is all netbooks and smartphones. (Reuters)
• TV stations go digital, deadlines or not. (New York Times)
• EchoStar’s Charlie Ergen. He may still come back to scuttle the Liberty-Sirius deal. (WSJ)
• Comcast, which reported better-than-expected profit but said it lost subscribers and warned that advertising sales would be under pressure this year as well. (Reuters)

(Photo: Reuters)

Yes, it’s true. Mattel has gone where it has already gone before, but only differently!

Pictures of Mattel’s new Star Trek Barbies were released on Wednesday causing a stir among Trekkies, eagerly anticipating Paramount’s May release of the film, “Star Trek,” chronicling the earliest days of Captain Kirk and Spock.

The toys’ images, released by CBS Consumer Products, which owns the licensing rights for Star Trek consumer products, show the three dolls, which are modeled after the three actors playing Captain Kirk, Spock, and Lieutenant Uhura in the film, which is set to be released in theatres on May 8th!

The dolls will hit shelves in April, over a decade after Mattel released a Barbie and Ken Star Trek themed collectible set in 1996 to celebrate the 30th anniversary of the cult hit TV show. Unlike the new line made to resemble the actors, the 1996 set features Barbie and Ken themselves dressed as original series characters.

Mattel also released a Barbie and Ken Star Trek watch in 1996.

I stepped out of the Las Vegas Convention Center yesterday to recover from the brilliant glare of the gazillion TVs on display inside — only to run into another set of boxes on the sidewalk. Okay, they weren’t regular old TVs, but humans wearing black boxes over their heads.

Their heads emblazoned with the logos of TV companies, these “TV zombies” were out on the street taking a break from their first CES protest. Jeffrey Jacoby, one of the zombies, explained that they were members of the Electronics Takeback Coalition, which was demonstrating against the poor gadget recycling practices of consumer electronics manufacturers like LG, Toshiba, Sony and others.

“We’re calling on manufacturers of TVs at CES to take back old products and keep toxic e-waste from coming to haunt us,” said Jacoby, who was dressed in rags and had on white face paint. The Dallas resident works for an environmental non-profit group and came to Vegas along with nearly 40 other people, just to protest.

Earlier in the day, the group organized a press conference and an official 25-zombie demonstration. (You can watch the TV zombies in action in this “Revenge of the Return of the Undead Toxic Televisions” video here.) They’re campaigning for a national recycling program from TV manufacturers ahead of the Feb 17, 2009 digital TV transition,  when “millions of (analog) TVs will become obsolete,” according to the website.

Maybe it’ll be a less uphill task this year to convince CES exhibitors that taking back old TVs isn’t such a bad thing, given how much they’re touting their new energy-saving TVs, recyclable packaging and general all-round environmental friendliness.

If gadgets were fashion models, Samsung would probably send its TVs, Blu-ray players and camcorders sashaying down the runway, with reporters and photographers scrambling to get close. That’s how proud they were of their gadgets at the Consumer Electronics Show — admittedly, they were all slim, sexy and worth a slip of drool.

The South Korean electronics giant paraded a number of new or upgraded TV models in Las Vegas today, including a line-up of high-definition TVs that are supposed to be more energy efficient because they use LED as a light source rather than traditional cathode lamps.

Jongwoo Park, Samsung’s president of digital media, was quite bullish when asked about the tiny LED TV market. “We’re going to create the market,” he said.

Since these TVs use less energy and contain no mercury, Samsung’s hoping the growing body of green consumers will be tempted to buy thems. No price points yet, though.

Samsung also showed off a new Blu-ray player, billed the world’s slimmest at only 1.5 inches thick. In fact, Samsung executive Tim Baxter said these gadgets are meant to be “show offs.”

But who’s buying these days? “Even in these tough times, people will invest in their family,” Baxter said. And if you’re not buying, you could always get close.