Hou Xiaonan, CEO of China Literature, issued an internal letter: embrace the historical opportunity of AIGC, establish four major business divisions, and create a multi-modal IP experience and consumption platform

Source: Titanium Media APP, Author: Li Chengcheng

Original Title: "Hou Xiaonan Sends Internal Letter: China Literature Establishes Four Business Departments, Will Build a Multimodal IP Experience and Consumption Platform"

Image credit: Generated by Unbounded AI tools

On June 19, the internal letter exclusively obtained by Titanium Media APP from China Literature showed that Hou Xiaonan, CEO of China Literature, was launching a new round of organizational upgrading, and stated that the company’s medium and long-term business blueprint is to upgrade AIGC to empower original multiple A large platform of modal and multi-category content, building a new IP upstream and downstream integrated ecosystem.

Centering on this strategic goal, China Literature will establish "four major business divisions". The positioning and goals of the four business divisions are as follows:

"Content Ecological Platform Division": Responsible for the deep integration of original content and various platforms. Driven by two-way content and platforms, it provides new impetus for China Literature IP incubation and ecological chain efficiency improvement. At the same time, use AIGC technology to deepen the content ecology and IP industry chain of text, audio, comics, animation, derivatives, etc., and build a multi-modal IP experience and consumption platform. "Film and Television Business Department": continue to integrate Xinli Media and China Literature Group, take Xinli Media as the main position of film and television, and China Literature Film and Television focuses on China Literature IP development, jointly develop high-quality film and television business, and continue to produce "multi-category, series The popular film and television works of “Nationalization” will enhance the popularity and influence of IP. "Intelligence and Platform R&D Division": responsible for tackling core technologies such as AI large models, and continuously transforming technical reserves into AIGC-enabled content creation eco-scenario applications. "Enterprise Development Division": build an IP and content decision-making committee, an investment management committee, and an enterprise development office to coordinate internal and external coordination mechanisms for IP development and operation, and improve the licensing system for games, film and television, and offline.

This is Hou Xiaonan’s first big move since taking over as CEO of China Literature in May this year. At that time, Cheng Wu, the former CEO of Yuewen Group, resigned from his current management position “due to the adjustment of personal life planning”. The board of directors appointed Hou Xiaonan, President of China Literature, as CEO of China Literature.

According to an internal letter exclusively obtained by the Titanium Media APP, Hou Xiaonan said that the core of this upgrade is to actively embrace the wave of new technologies represented by AIGC, and promote IP incubation and the efficiency of the ecological chain. Among them, the dual-drive upgrade of "content + platform" and the two-way empowerment of "technology + culture" will become the underlying driving force for business upgrades.

Hou Xiaonan stated in the internal letter that in order to promote the implementation of the business blueprint, China Literature needs to complete a series of important infrastructure construction, including opening up content and products, realizing platform integration; building AIGC and other key technical capabilities; promoting close coordination of IP multi-level development, etc. .

The first is to penetrate the operation chain of "multi-modal content-big product platform" and complete the dual-drive upgrade of content and platform. The brand-new content ecological platform business unit will open up an integrated operation mode of multi-modal content and products. Text, audio, comics, animation and other content production systems will be further matched and integrated with the user system to meet their needs for different experiences such as graphics, text, audio and video of the same story, and build a new form of IP experience and consumption scenarios.

The second is to realize the dual integration of "IP + film and television" business and organization of China Literature and Xinli. The brand-new film and television business department will release greater high-quality production capacity with a unified film and television production line. China Literature will further integrate the business process of China Literature’s core IP + Xinli boutique production to build an integrated operating model.

The third is driven by technology and actively embraces the wave of AI. Currently, China Literature is actively exploring the application scenarios of AI in the entire industry chain, such as assisted content creation, IP incubation, and IP multi-modal development and experience. Through the establishment of a key project team to focus on AIGC technology and its scenario application, technical capabilities will become a powerful boost for creators and an accelerator for the upgrade of the content ecological platform.

The fourth is to create an integrated IP ecosystem, establish an IP brain and promote close coordination of IP multi-level development. By building an "IP and content decision-making committee", a value management system for the whole life cycle from text to IP is formed, and at the same time, explore the key IP development and operation mechanism with IP producers as the core. Relying on the ever-growing multi-modal platform, IP ecology will form a more agile industrial path from incubation to visualization and commercialization to improve the efficiency of IP commercialization.

Hou Xiaonan said, "In the past years, China Literature has grown from deep cultivation of online literature, to the development of IP ecology, and to the current advancement, upgrading AIGC to empower original multi-modal and multi-category content platforms. We have always been rooted in content, adhering to openness and innovation , and join hands with creators and industry partners to bring good stories to people. Today, we are facing a historic opportunity to build a more focused, open and agile China Literature IP ecosystem.”

The following is the full text of Hou Xiaonan's internal letter:

Embrace AI, rejuvenate IP ecology

Hello, everyone who reads the article!

In the past month, the company's management has conducted intensive discussions on the macro environment, market opportunities and business direction. We decided to face the future, anchor the strategic goal and start the organization upgrade, and you will receive the organization's post later.

With the common dream and expectation of "making good stories live forever", and embracing the historical opportunities coming from AIGC, we will start again and carry out active innovation and organizational upgrading. We will build four business divisions and three management lines to jointly promote the implementation of the strategy.

**1. Establish the "Content Ecological Platform Division" to deeply integrate original content with various platforms. Driven by two-way content and platforms, it provides new impetus for China Literature IP incubation and ecological chain efficiency improvement. At the same time, use AIGC technology to deepen the content ecology and IP industry chain of text, audio, comics, animation, derivatives, etc., and build a multi-modal IP experience and consumption platform.

**Second, the establishment of the "Film and Television Business Department", **continue to integrate Xinli Media and China Literature Group, with Xinli Media as the main position for film and television, and China Literature Focus on the development of China Literature IP, and jointly develop high-quality film and television business. Combining the features of key IPs, give full play to the quality production capabilities, continue to produce "multi-category, serialized" explosive film and television works, and enhance the popularity and influence of IP.

**Third, the establishment of the "Intelligence and Platform R&D Division", ** is responsible for tackling core technologies such as AI large models, and continues to transform technical reserves into AIGC-enabled content creation eco-scenario applications. Support the business development of large platforms through the capacity building of intelligence, data, engineering, design, and growth in the general middle platform.

**4. Establish the "Enterprise Development Division", **build the IP and content decision-making committee, the investment management committee, and the enterprise development office, promote the generation and efficient implementation of the core business decision-making mechanism, and coordinate the internal and external coordination mechanism of IP development and operation , improve the game, film and television, offline and other licensing systems, and at the same time accelerate the early incubation of exploratory businesses such as game joint research.

**At the same time, we will establish three management lines to improve functional management and efficiency, which are HR management line, financial line, and legal and political line. **

Here, we would like to share with you the strategic thinking behind this round of organizational upgrading, as well as the medium and long-term business blueprint we will build together.

As you can feel, we are currently in a historic wave of technology, and the release of content productivity brought about by AI technology will have the opportunity to reshape the industrial structure. At the same time, user needs are also constantly upgrading, especially the consumption of IP cultural content presents a trend of cross-field and multi-modal linkage integration. Along with changes in the industrial environment and user needs, the content industry is bound to usher in a new round of upgrades and iterations.

Moving towards the next stage of development, China Literature needs to respond to four strategic expectations:

First, the Internet has returned to the era when content is king. How should our product form evolve to cover a wider IP audience?

Second, as the Matthew effect of film and television works is becoming more and more obvious today, how to use the group's IP advantages and Xinli Media's core capabilities to continuously launch popular film and television boutiques?

Third, what does the AI wave mean for "content + platform" companies like us? How will our content form and production method evolve and improve efficiency?

Fourth, IP multi-level development collaboration and user operation capabilities are crucial. How to further realize the integrated operation and value-added of the IP industry chain, link partners, and explore commercialization capabilities that are both differentiated and large-scale?

These four core expectations are not only related to the foundation of China Literature, but also will lead us to the next three, five or even longer-term sustainable growth.

In the past few years, we have gradually built an ecosystem based on online literature and centered on IP cultivation and development. However, limited by production capacity and existing technologies, the development of IP in various industrial chains still has a certain lag and fragmentation, and it cannot meet users' needs for integrated experiences such as graphics, text, audio, video, and derivatives. There are still many High-quality works cannot be adapted. With the reshaping of content production by the AI wave, the efficiency of IP development is expected to usher in a significant increase, opening up space for realizing multi-modal IP experience and opening up integrated IP operations.

Currently, China Literature's IP ecosystem is at a critical stage of upgrading and improving efficiency. Embracing a new round of industrial opportunities, the medium and long-term business blueprint of China Literature is to upgrade AIGC to empower original multi-modal and multi-category content platforms, and to build a new IP upstream and downstream integrated ecosystem. **

Opening up the multi-modal IP experience will lay a broader user base, stronger emotional consensus, and a more unified IP image for the IP integrated ecology. Going further, it is expected to reconstruct the ecological chain of IP from text to visualization and commercialization.

In order to promote the implementation of the business blueprint, we need to complete a series of important infrastructure construction, including opening up content and products, realizing platform integration; building AIGC and other key technical capabilities; promoting close coordination of IP multi-level development, etc. Organizational upgrades are carried out to match business upgrades.

**First, run through the operation chain of "multi-modal content-big product platform", and complete the dual-drive upgrade of content and platform. **

The brand-new content ecological platform business unit will open up an integrated operation mode of multi-modal content and products. Content production systems such as text, audio, comics, and animation will further match and integrate with the user system, which is a strategic requirement. The online business will run through the content and product system with the idea of "high-quality content + user operation", which puts forward quite high requirements for content production, distribution and operation.

We must go all out to upgrade the product experience, meet users' needs for different experiences such as graphics, text, audio and video of the same story, and build new forms of IP experience and consumption scenarios.

**Second, realize the dual integration of "IP + film and television" business and organization of China Literature and Xinli. **

The brand-new film and television business department will release greater high-quality production capacity with a unified film and television production line.

As an amplifier of IP influence, the film and television business is of great significance. We have seen the recovery momentum of the film and television industry, as well as opportunities for content upgrades to lead the reshaping of the industry. Platforms and audiences have never been so eager for high-quality content as they are today, and the market has entered a period of great waves and improved quality and efficiency. Our long-term accumulation of high-quality film and television drama production and distribution capabilities has increasingly become today's competitive advantage. What we need to do is to further integrate the business process of China Literature's core IP + Xinli boutique production, further break down organizational barriers, and build an integrated operating model.

We believe that the continuous integration of business and organization will bring about a more efficient release of IP influence, and we will witness more serialization of high-quality products such as "Celebrating More Than Years", "Zuo Son-in-law" and "Da Feng Da Chang Ren" in the near future IP film and television dramas have entered thousands of households.

**Third, driven by technology, actively embrace the wave of AI. **

AIGC is the underlying support for us to build a multi-modal large platform. As a company based on "content + platform", China Literature has a huge advantage in the AI wave. We will set up a key project team to focus on AIGC technology and its scenario application, so that technical capabilities will become a powerful boost for creators and an accelerator for the upgrade of the content ecological platform.

We are actively exploring the application scenarios of AI in the entire industry chain such as content creation, IP incubation, and IP multi-modal development and experience. We can clearly see that: using AI writer assistants to assist in creation will allow writers to release their creativity to a greater extent; using AI as an IP development speed to improve efficiency will allow more excellent and good stories to be adapted; connecting with AI applications Readers and users will be provided with a multi-modal IP experience with both graphics, text, audio and video, and users will have the opportunity to step into each story and interact with IP characters.

**Fourth, create an integrated IP ecosystem, establish an IP brain and promote close coordination of IP multi-level development. **

On the IP planning side, we will form an "IP and content decision-making committee" to form a value management system for the whole life cycle from text to IP, and at the same time explore the differentiated development and operation mechanism of key IP with IP producers as the core.

On the IP development side, we will rely on the ever-growing multi-modal large platform, based on online literature, directly open up the downstream business of IP such as comics, animation, and derivatives, and form an inseparable business relationship. In the future, IP ecology will form a more agile industrial path from incubation to visualization and commercialization to improve the commercialization efficiency of IP. When users are reading, they can deeply participate in the visual co-creation of IP, so as to establish a visual consensus for the integrated development of comics, animations, derivatives, etc., and help to open up multi-carrier user emotions.

The core of China Literature’s upgrade is to actively embrace the wave of new technologies represented by AIGC, and to promote IP incubation and the efficiency and growth of the ecological chain. Among them, the dual-drive upgrade of "global content + platform" and the two-way empowerment of "technology + culture" will become the underlying driving force for business upgrades. **

Over the past few years, China Literature has gone from deeply cultivating online literature, to developing IP ecology, and now to advanced, upgraded AIGC to empower original multi-modal and multi-category content platforms. We always take root in content, uphold openness and innovation, and join hands with creators and industry partners to bring good stories to people.

Today, we are facing a historic opportunity to build a more focused, open and agile China Literature IP ecosystem. Looking forward to working side by side with all partners, grasping the critical moment of industrial upgrading, and jointly creating a new era of IP experience.

Keep good stories alive.

Monkey & General Office

June 19, 2023