Summary of Key Points
In July 2026, the total usage time of ByteDance products surpassed that of Tencent products for the first time. Even considering only Douyin, its total user usage time exceeded that of WeChat. This isn't because people have stopped using WeChat; rather, it indicates that the domestic mobile internet has entered a stage where no new users can be acquired. ByteDance has captured nearly 40% of the total user usage time across the internet with its range of products, including Douyin, Hongguo Short Films, Tomato Novels, and SuiShui Music. However, the widespread adoption of AI is changing the fundamental rules of the industry: in the past, platforms made more money by keeping users on their platforms for longer periods; in the future, they will make more money by helping users complete tasks more efficiently. Just as ByteDance won the championship in the "attention economy," it now faces a new competition with completely different rules.
---
Detailed and Easy-to-Understand Explanation
1. The Truth Behind Douyin Outpacing WeChat: It's Not That WeChat Has Declined, but the Competition Has Changed
Many people's first reaction to this news is, "Have people stopped using WeChat?" This is a misunderstanding. WeChat still has 930 million active users daily, more than Douyin's 714 million. If you need to message friends, receive work notifications, or make payments, you still have to use WeChat—it remains an essential "digital infrastructure" that no one can do without.
Douyin's success can be attributed to two main changes: first, the number of people using Douyin this year has increased by 19% compared to last year; second, the average time spent on the app has increased by 8%. The underlying reason is that the demographic dividend of the mobile internet has reached its peak, and almost everyone who uses the internet already has WeChat or Douyin. There are no new users left to acquire.
In the past, platforms competed to attract more users. Now, the competition is about who can capture the limited time people spend online each day. After using WeChat, users might spend their time on Douyin, Kuaishou, or listening to music/singing novels. Whoever can gain even a minute of users' time can earn more money. ByteDance now accounts for 40.9% of the total user usage time, while Tencent's products account for only 29.1%, meaning nearly half of the time people spend on their phones goes to ByteDance.
2. Hongguo Short Films Surpassed the Sum of iQiyi, Youku, and MangoTV in One Year
The biggest factor behind ByteDance's success is Hongguo Short Films. This app, which many may not have installed, has 168 million users daily, more than the combined daily users of iQiyi, Youku, MangoTV, and Tencent Video. It has become the fourth most popular app in China in just three years, with users spending an average of over two hours per day on short films, which is equivalent to watching a whole movie as soon as they get home from work.
The reason for its success is that it has overturned the traditional rules of the short film industry. Previously, short films required users to pay to watch each episode after the first three. Hongguo, on the other hand, offers all episodes for free, allowing users to watch as long as they want. It makes money by inserting ads within the videos. This has significantly lowered the barrier to entry for users, and AI helps create high-quality content at a fraction of the cost. With AI, it's now possible to produce hundreds or even thousands of episodes of high-quality content quickly, ensuring there's always something new for users to watch.
3. ByteDance Has Created a "Traffic Loop Playground"
ByteDance has built a network where the success of one product benefits the entire company. For example, SuiShui Music has 167 million monthly users, and its user base has increased by over 70% in one year, even though user numbers on traditional platforms like QQ Music and Kugou have remained stable. This is because users from Douyin are often directed to SuiShui Music to listen to background music. When users find a song they like on Douyin, they can easily access the full version on SuiShui with almost zero cost.
Another example is Tomato Novels. Although more people are watching short films, Tomato Novels doesn't worry about the decrease in time spent on reading novels. It uses these novels as IP sources to create short films, AI-powered comics, and even movies, which are then shared on Douyin, generating additional revenue. This creates a closed-loop traffic system where users' time remains within ByteDance's products.
4. AI Is Changing the Game
The business model of "capturing users' time" is becoming obsolete. In the past, platforms relied on providing more content to keep users longer, but AI assistants aim to help users complete tasks more quickly. For instance, instead of spending half an hour looking for travel tips on Douyin, users can use ByteDance's services to book a hotel, plan a trip, and make a reservation in just 30 seconds. This shift means that platforms no longer rely on advertising to attract new users; they earn more from commissions on services used by users.
ByteDance's massive user base and its understanding of user preferences give it a significant advantage in developing AI assistants. However, the old approach of relying on content to capture time and sell ads is no longer effective. With AI, the focus is on making tasks more efficient, and platforms can earn more from user interactions rather than simply keeping them on their platforms for longer periods.
In conclusion, ByteDance's victory represents the last champion of the "attention economy." In the upcoming AI era, the competition will be about who can help users save time and complete their tasks more effectively, not who can keep them on their platforms for longer.