TENCENT(00700) 36氪·2024-02-18 23:56WeChat Reading Platform Overview - WeChat Reading has become a popular e-reading app among urban readers due to its simple interface, extensive e-book library, and affordable unlimited reading cards [1] - The app targets serious and deep reading, differentiating itself from competitors like iReader and Qidian Reading that focus on web novels and comics [1] - Backed by WeChat, the app has attracted a large user base, with over 200 million registered users and 5 million daily active users by the end of 2019 [1] - The platform has partnered with numerous publishers, including People's Posts and Telecommunications Press (5000 books), CITIC Press (3681 books), and People's Literature Publishing House (2238 books) [1] Publisher Concerns and Challenges - Publishers are dissatisfied with the revenue distribution model, as they struggle to profit from e-book sales on the platform [1][6] - Some publishers, like Paris Review, have withdrawn their e-books from WeChat Reading and shifted to single-book sales on other platforms [2][3] - The platform's membership model, which allows unlimited reading for a fixed fee, has led to reduced income for publishers and authors [6][7] - E-books on WeChat Reading are priced significantly lower than physical books, impacting the sales and reprint rates of physical copies [7][8] Revenue Distribution and Financial Impact - Publishers receive a share of membership fees based on the reading time of their books relative to the total reading time on the platform [6] - Some publishers report minimal earnings from e-books, with one translator earning only 4321.14 RMB from WeChat Reading compared to 37236.23 RMB from Amazon [6] - The decline in e-book revenue has been exacerbated by Kindle's exit from the Chinese market, with some publishers seeing a drop of over 80% in e-book income [6][7] Platform Strategy and Future Directions - WeChat Reading has shifted its focus to a membership-based revenue model, moving away from free reading and advertising [4] - The platform is exploring self-publishing, having released 62 e-books and considering IP adaptations for further commercialization [10] - The platform's strategy includes leveraging user data to create popular content and potentially prioritizing its own publications, which could further challenge traditional publishers [10] Industry Trends and Publisher Adaptation - Despite challenges, most publishers continue to offer e-books on WeChat Reading due to the platform's large user base and the growing trend of digital reading [8] - Some publishers are advocating for changes in e-book pricing and revenue models to better align with the interests of content creators [8] - The industry is grappling with the balance between digital and physical book sales, as e-books can both promote and cannibalize physical book sales [7][8]