WeChat monetization takes a celebrity twist
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E-mail Xinhua, September 23, 2013
The membership fees charged by celebrity accounts are the latest effort to cash in on the popular platform. It is unknown how Tencent benefits from this charge. The company did not reply to Xinhua's request for comment on the membership fee.
"The move opens a fresh new angle in the ongoing discussion about ways to monetize on internet platforms," said Wang Yi, a senior IT consultant at Beijing-based research firm CCIDConsulting.
Internet companies traditionally earn their revenue through ad campaigns, as in the case of Internet portals and microblogs. However, the latest offering on WeChat puts a price tag on satisfying fans' urge to know more about their favorite stars.
In that case, content becomes the ultimate factor in determining the fee's ability to become a sustainable revenue source. Zhu Xiaoming, founder of WeMedia, said that users will pay membership fees only if the content they receive holds appeal.
Zhu added that WeChat's ability to monetize depends on future improvements of its official accounts, such as that of actor Chen Kun.
It is hard to estimate the revenue already grossed through official accounts, but the platform has become a new battleground for companies and celebrities vying for public attention, according to Zhang Yi, CEO of iiMedia Research.
Tencent has not revealed detailed plans to regulate these accounts. While many accounts tout the privileges users can enjoy for a fee, some wonder if users will get their money's worth and how Tencent will protect users' rights.
"A post-sale service mechanism should be put in place to address subscribers' concerns, but we haven't seen any clear measures so far," said iiMedia Research's Zhang.
As more celebrities and companies open their official accounts to interact with users, Tencent must set necessary ground rules, including the protection of intellectual property rights, profit split, taxation and content screening, said Wang of CCIDConsulting.
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