In addition to challenging TikTok, Tencent also connects its products with channels to help creators stream content.
Chinese multinational and entertainment company Tencent Holdings is ready to challenge ByteDance’s dominance with its own TikTok. A source revealed that Tencent had built a team of content creators to launch its own short video platform TikTok, which launched in the Chinese market in 2016 and has skyrocketed to reach more global audiences over the years.
Tencent relies on WeChat to develop its own TikTok
China’s WeChat channels hosted an online concert during the summer of last year that featured the Backstreet Boys. The boy band performed on stage in Pennsylvania and nearly 44 million views in different locations tuned in to be entertained. This show is another event held by WeChat owner Tencent to promote its app’s short video platform. In addition to the BackStreet Boys, Tencent has also featured artists like Taiwan’s Westlife and Jay Chou for live-streamed concerts as it strives to challenge TikTok. Meanwhile, the tech giant’s founder, Pony Ma, has referred to the platform as “the hope of the company.”
A senior analyst at research firm Analysys, Liao Xuhua, said:
“Tencent hopes to be able to turn Channels into the next WeChat Pay. You have a chance. But it’s also going to be difficult.”
Some reliable sources who are familiar with Tencent mentioned how they have continually discussed the importance of Channels within the multinational company. The channels have been a significant advantage for Tencent, which saw some success last year due to stricter gambling legislation and the ongoing coronavirus pandemic. The public feed of videos and photos recorded explosive growth in 2022, as its total number of views increased more than 3 times. At the same time, the number of daily active creators and video uploads increased 2X.
Growth of WeChat channels
Tencent added that the Gross Merchandise Value (GMV) of live streaming e-commerce increased by more than 800% on WeChat channels. However, the company has not specified the specific figures registered with GMV. According to a LatePost report on Channels’ daily transactions, the platform’s sales surpassed 100 million yuan (15 million) in September 2022 for the first time. This means an annual rate of about 36 billion yuan.
In addition to challenging TikTok, Tencent also connects its products with channels to help creators stream content. The company integrated its Tencent Meetings with the platform, which will help hosts to conduct interviews and live broadcasts on the channels. In addition, the multinational conglomerate lowered the monetization threshold in the Channels. While Tencent allows users with as few as 10 followers to earn through advertising. You must have more than 10,000 followers to start monetizing on TikTok.
Tencent resident Martin Lau revealed in November that Channels’ advertising was on track to hit 1 billion yuan in the fourth quarter of 2022.
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Ibukun is a crypto/finance writer interested in conveying relevant information, using non-complex words to reach all kinds of audiences. In addition to writing, he enjoys watching movies, cooking, and exploring restaurants in the city of Lagos, where he resides.
