One of largest distinctions between creative industries and traditional ones, such as manufacturing, is how difficult it is to predict their return on investment, says Lu Jiaxian, the founder of mobile gaming company Mu77.

“Companies engaged in traditional industries such as manufacturing could get a clear view about their investment returns,” says Mr. Lu. “All you had to do was add up your cost for components, labor, and the amount of profit you were aiming for.”

“The same principle wouldn’t work in creative industry where investment and return are less correlated,” he says. “A low-budget animation film like Monkey King: Hero is Back could achieve huge commercial success, while blockbuster titles like Throne of Elves could end in gloomy box office revenues.”

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

What you get

Full access to all premium content and our full archives

Members'-only newsletters

Preferential access and discounts to all TechNode events

Direct access to the TechNode newsroom

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.