Bertelsmann, the German media company, is considering greater investment in China and plans a digital transformation, news portal ifeng.com.cn reported Monday, quoting CEO Thomas Rabe.

According to Rabe, the company plans to increase investment in digital media and education services sectors in China, but figures and a timetable were not disclosed.

Bertelsmann has been in China for more than 20 years, though it discontinued the Bertelsmann Book Club in 2008.

The company has faced challenges in recent years, including digital competition and slow growth, with annual growth staying at 1 percent since 2006, Rabe said.

Rabe says Bertelsmann can benefit from an emerging Chinese middle class with big purchasing power and a yen for digital products, as the Internet, mobile services, e-commerce, online advertising and online gaming are booming in China.

"Exploring emerging markets, enhancing core business, speeding up digital transformation and building a new business platform are our strategic priorities," Rabe said.

"Bertelsmann has not stayed active in digital business compared with peers such as News Corp, but it is not too late, as the Chinese government is now encouraging digital industry," Chen Shaofeng, deputy dean of the Institute for Cultural Industries at Peking University, told the Global Times Monday.

Wang An, a researcher from CCID Consulting, predicted this August that market size of digital content in China should surpass 320 billion yuan ($51.24 billion) this year, with growth staying above 10 percent in the coming years.

Global Times