Posts tagged Tencent
Apple Tells WeChat Tips are In-App Purchases

Li Yuan reporting for the Wall Street Journal:

"Apple Inc. has seen its challenges multiply in the all-important China market over the past year or so, from declining market share to increased government scrutiny. Now, its effort to wring more revenue from Chinese iPhone users may be setting the company up for more trouble.

"Apple’s latest predicament centers on its App Store. Last month, Apple told several Chinese social-networking apps, including the wildly popular messaging platform WeChat, to disable their “tip” functions to comply with App Store rules, according to executives at WeChat and other companies. That function allows users to send authors and other content creators tips, from a few yuan to hundreds, via transfers from mobile-wallet accounts.

"Those transfers are offered by the social-networking apps free of charge, as a way to inspire user engagement. Now, those tips will be considered in-app purchases, just like buying games, music and videos, entitling Apple to a 30% cut."

This may be a direct response to the what Ben Thompson calls Apple's China Problem

"The fundamental issue is this: unlike the rest of the world, in China the most important layer of the smartphone stack is not the phone’s operating system. Rather, it is WeChat."

Read on the Wall Street Journal.

Header image from Unsplash.

Tencent’s Video & Gaming Content Investments are Paying Off

Lulu Yilun Chen reporting for Bloomberg Technology:

"Tencent Holdings Ltd.’s investments in blockbuster video and gaming content are paying off — big-time.

"China’s largest internet company posted record quarterly sales and profit that topped all analysts’ estimates as blockbuster titles including Honour of Kings drove a billion-plus users on WeChat and QQ to spend on game items. Chairman Pony Ma’s strategy of stockpiling rights to hit anime and novels and developing shows in-house is transforming the company into a hybrid Marvel Studios-Netflix style content factory.

"Soaring growth at Tencent’s mobile gaming and advertisement units is buying the company time to develop new channels of revenue in finance and cloud, and bankrolling a foray into Hollywood. After backing “Kong: Skull Island,” the company is helping finance the upcoming summer tent-pole “Wonder Woman.” A market value of about $320 billion underscores how China’s online titans, including Alibaba Group Holding Ltd., are outstripping traditional state sectors and defying a slowdown in the world’s second-largest economy."

Read on Bloomberg.

Header image from Business Insider.