Last night, WeChat made two announcements:
- Due to Apple’s new regulation 3.1.1, iOS users can no longer use the “Tip Author feature” (which enable to give small sums of money to support a WeChat Official Account). Authors can still post personal QR code to collect payment from users
- 6 hours later, WeChat posted another article: same announcement, but the workaround of putting personal QR codes to accept payments was not allowed anymore
What is Tip feature
It’s the feature at the end of article, where readers can tip the authors for the content.
Who does this impact?
Individual authors who depends on tips will be directly impacted by the change. According to a16z report, iOS phone units sold make up for less than 17% of the total volume, but the revenue from iOS users is around 50% of total in-APP purchases. This distribution may be even more skewed within China due to the popularity of iPhone among the middle class.
Apple force Tencent to close the tip feature?
All purchases happens within Apple should go through Apple’s in-App purchase. This is not a new regulation. As a platform, Apple takes a 30%
from the purchase amount.
For example, if you purchase WeChat icons, you are paying through the in-App purchase.
This Apple regulation update is not specific related with WeChat. Any digital content purchased through iOS app is subject to the 30% hair cut.
(please read in detail and explain the rules:
https://developer.apple.com/app-store/)
Should “tips” be count as digital content?
….
Tencent blames Apple for changing to regulation. But Tencent could very well kept its Tip feature and share the 30% revenue tip with Apple.
Canceling the Tip feature will directly harm the authors who depends on tips. And this is directly against Tencent’s previous claim to encourage original content creators on the platform.
It’s not just about the tip feature. It refuse to share revenue with Apple because Tencent is growing to be a competitor against Apple.
WeChat is growing to be another independent “one-app to rule them all” ecosystem. Within WeChat, users no longer needs to purchase any other Apps. This directly impact the Apple’s App ecosystem.
In the announcement, WeChat indicates its been negotiating with Tencent for a long period, (the Apple regulation was released in June 2016, almost a year ago).
According to Jason Ng, a Chinese tech blogger, WeChat has long been negotiating with Apple on the issue of Tips, the original negotiation is to enable the Tip feature through in-app purchase.
What changed?
Since early this year, WeChat launched Mini Program, a feature to replace Apps). Mini-program was originally called 应用号, which translated to App Account. The name was rejected by Apple since it sounds too much like Apps. Since last week, WeChat released 8 (to be checked) features for Mini Programs:
- Ability to scan QR code on Moments
- Ability to link with WeChat menu
- Connecting with 3rd party platforms
WeChat has became stronger than ever as the ecosystem for “Apps”. It’s ready to say no to Apple for working against it.
Conclusion
This may just be the beginning of a war between the two IT giants. When at war, user experience is the automate sacrifice. For example, the Alibaba-Tencent war result in blocking each other’s system in every possible way. Let’s hope this one won’t result too ugly.