Wikia is the commercial counterpart to the not-for-profit Wikipedia site.

Wikipedia was founded in 2001 and is seen as a serious rival to commercial online encyclopaedias.

It is built using wikis, open-source software which allows anyone to edit, add, delete, or replace an entry. It relies on volunteer contributors to update its pages.

Businesses have started to embrace the wiki model to allow employees to collaborate and communicate about projects, while special-interest groups are also using them to share ideas.

"It is open-source software and open content," Mr Wales told the Reuters news agency.

"We will be providing the computer hosting for free, and the publisher can keep the advertising revenue."

Thirty thousand users have posted 400,000 articles so far on Wikia.com sites.

Mr Wales believes the falling cost of computers, storage and network access will mean success for the service.

"It is becoming more and more practical and feasible to do," he said.

"We don't have all the business model answers, but we are confident as we always have been that the wisdom of our community will prevail," he said.