Changing face of China gaming online operations

China online today is going through one of its most significant changes. Publishers and now linking with "competitors" from an operational perspective. Multiple distributors for each title, reducing the risk and spreading the reach.

The distribution channels across China (outside major cities) are extremely fragmented with many regional users limited in content choice. Bringing a title to market must include distribution strategies which then address how local players access content and how they pay for it.

What does this mean for western content looking for licensing partners?We can expect that as the market matures it is starting to segment; the demand for wider content has begun. With that comes increased competition, specialized operators. The opportunities will continue to expand, the deal structures in turn will also adjust.

The "publisher" will still hold the license agreement however more operational partners will join the agreement.This is part of the market's rapid expansion, at some point in the distant future it may again consolidate.