A major online literature company in China has lost a large number of its core writers and managers, a heavy blow to the superficially prospering business.

If China's online literature companies want to have a brighter future, they must create a more rational business model and improve the quality but not the quantity of their yields, says an article of the 21st Century Business Herald. Excerpt:

Internet literature did not originate in China, but it has bloomed in China.

Thanks to the explosion of China's Internet user population, online literature has become a large and profitable market. Dozens of famous online authors, concentrated in several big companies, have quickly become the richest writers in the country, but their status as writers of literature remains controversial.

But as the market grows the writers want more from their companies. There is no proper business model suited to the rapid development of industry in China.

Another problem is the market is open to any network users. The quality of online literature is quite low. As the readers become pickier, the profitable market actually becomes smaller as more and more people enter the industry diluting the share of readers.

If the companies cannot find the apt business model and improve the quality of their work, the market the gradually disappear.