How Traditional Cultural IP Realizes Commercial Value in the Digital Era: A Case Study of Nezha 2: The Demon Child Wreaks Havoc in the Sea
The commercialization of cultural heritage in the digital age represents both an opportunity and a dilemma. This article examines how heritage-based intellectual property (IP) can be reframed, technologically mediated, and socially co-created, using the Chinese animated film Nezha: Birth of the Demon Child (Nezha 2) as a case study. Drawing on interviews with industry professionals and audiences, industry reports and policy documents, and digital ethnography of user-generated content on major Chinese platforms, the study identifies three interrelated mechanisms: selective fidelity to heritage symbols, technological scaling through production pipelines and algorithmic promotion, and participatory legitimization via fan creativity. These findings are synthesized into a conceptual model-the Culture–Technology–Market Triad-which explains how heritage-based IP achieves both cultural legitimacy and commercial viability. The article contributes theoretically by advancing debates on authenticity, digital infrastructures, and participatory economies, and practically by offering insights for producers and policymakers seeking to balance cultural continuity with innovation.
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