The most popular Chinese mobile Karaoke app Changba recently launched Changba Xiaofeixia, a mobile game customized for its users by partnering with Chinese game developer Rekoo.

Gaming has been one of the most profitable Internet services and one of the few Chinese users would like to spend money on in China. Free Chinese Internet service providers always made revenues by channeling a portion of users to games developed in-house or by partner developers.

The revenue model of Tencent’s has been modeled by a generation of Chinese Internet services. The Chinese Internet giant began monetizing its free online instant messaging service users with virtual item sales and then would come up with premium subscriptions along the way. But gaming would become its biggest revenue source after the company started licensing online games and building a team form game development. Till today, more than 50% of the company’s total revenue is from games. If adding the gaming-related items included in premium subscriptions — for instance, users can opt to pay ten yuan or so (a little more than one dollar) per month for some in-game items in various games, the total revenue from gaming could account for 70% as a percentage as estimated by some industry insiders.

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Tracey Xiang

Tracey Xiang is Beijing, China-based tech writer. Reach her at traceyxiang@gmail.com