The game market is a large in China. WeChat is made by the biggest game producing and communication company in China called Tencent. WeChat has over 2000 mini-game inside it and there are over 100 million active players each day. These mini-games can be a healthy source of revenue for developers. Ad revenue is shared 50:50 for games with 1,000 users, and 70:30 in the developer’s favor for those with over 100,000. In-game purchases – available for those using Android operating systems – are another revenue stream, with revenue split 60:40 in favor of the developer. WeChat offers to waive its 40% cut for games with transactions worth under 500,000 RMB ($74,000) for selected partners. Tencent Billiards brings in 10 million RMB ($1.5 billion) per day.
WeChat at Work, and in the workplace
WeChat offers Slack equivalent (albeit more focused on mobile users) WeChat at Work. As of late 2017, it had been taken up by 1.5 million registered enterprises, with a total of 30 million active users. Inside the office, this is more useful than email.
WeChat Pay
Most of the places in China including the countryside use WeChat pay. By the end of 2017, 47% of China’s rural community used digital payment services. In all, mobile payments transactions over 2017 were worth $16 trillion (109 trillion RMB).
As the trend of cashless in China, those payment apps such as Alipay and WeChat are making more revenue. Because WeChat is the most used communication app, they have the most penetration rate in China.
I took Mandarin as a language here at LAHS, and our teachers had us learn a bit about WeChat so we could better understand China's culture. It's crazy how they are able to combine all these applications that we use such as Instagram, Snapchat, Venmo, etc into one single app. However, I do think it is necessary for China to provide a platform such as WeChat to their population because all the apps we use in America are blocked from the Chinese population. From an economic standpoint, this is beneficial to China because they collect all the revenue and get complete control over the networks created through WeChat itself.
ReplyDeleteWhat's seems important about WeChat's business model is the low cost of entry to the business system. As mentioned in the post, 2000 mini-games exist on WeChat's website, which each generate money for the company. What's great about that system is that WeChat doesn't have to spend any money to earn money off of the production of these games. Also, since the games are exclusively on WeChat, consumers must use the app to play these games, which means that more people are attracted to the app. And this also benefits the independent game companies since they have a cheap place to host their games.
ReplyDelete