Is China ready to pay for AI? ByteDance’s Doubao loses 6 million users
ByteDance’s AI chatbot Doubao lost 6 million users after introducing paid subscription tiers, signaling potential over-monetization risks in China’s competitive AI market. Analysts warn the move may have been premature, as free AI services remain dominant in the country.
ByteDance’s AI chatbot Doubao experienced a significant user decline after teasing paid subscription plans, losing 6 million users in May. Data from global AI market tracker Aicpb.com showed a 1.81% month-on-month drop, raising concerns about the company’s monetization strategy in a market where free services still dominate. The subscription tiers were introduced in early May, with a standard plan priced at 68 yuan (US$9.96) per month or 688 yuan annually, and a premium ‘professional’ plan at 500 yuan monthly or 5,088 yuan yearly. Despite Doubao’s status as China’s most popular AI mobile app with 330 million users, the shift toward monetization appears to have alienated users. Analysts suggest ByteDance may have rushed monetization efforts, as the era of free AI services in China is still far from over. Li Bangzhu, founder of Aicpb.com, described the user loss as a ‘worrying sign’ in a highly competitive domestic market where user retention is critical. Doubao’s closest rival is gaining ground, further pressuring ByteDance to balance monetization with user retention. The incident highlights the challenges of transitioning from free AI services to a paid model in a market where consumer behavior remains heavily influenced by cost sensitivity.
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