Apple, Tencent Discussing Potential Revenue-Sharing Deal For WeChat Mini-Games, Says Chinese Game Maker Exec

In a recent development, tech behemoths Apple Inc. AAPL and Tencent are reportedly discussing a potential revenue-sharing agreement for WeChat’s mini-games, as confirmed by Tencent’s Chief Strategy Officer, James Mitchell.

What Happened: The two tech giants are contemplating a revenue-sharing agreement for mini-games, which are played directly on WeChat. Introduced by Tencent six years ago, these games do not require users to download them from an app store. They have gained significant popularity, with over half a billion WeChat users playing at least once a month. Advertising revenue from these mini-games accounts for 15% of WeChat’s total.

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On Wednesday, Mitchell stated that Tencent currently does not monetize mini-games through in-app purchases on iOS. However, discussions are ongoing to potentially enable this feature, which would be beneficial for developers, users, Apple, and Tencent, Reuters revealed on Thursday.

“We want to make it available on terms that we think are economically sustainable, that are also fair. And so that's a discussion that's underway, and we hope that the discussion leads to a positive outcome,” Mitchell said to investors.

“But in the event that discussion doesn't progress, then the current status quo continues.”

Why It Matters: This development comes in the wake of Apple’s increased efforts to compel Tencent and other companies to modify their popular Chinese apps, closing loopholes that allow in-app creators to bypass Apple's 30% commission.

Apple’s market share in China has been declining, and the company has been looking for ways to boost its presence in the region. Despite a slight dip in China's revenue, Apple’s third-quarter earnings report surpassed market expectations, indicating a strong overall performance.

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Image by katjen via Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari