Why the Chinese Will Pay for Content That Americans Won't

Back in early 2016, Li Xiang was just another overworked magazine editor in Beijing. Then along came an opportunity to produce a business newsletter on a brand-new app called De Dao. In just a few months that app—which means “I Get” in English—had attracted millions of users looking for daily advice and to learn everything from music to economics. And Li? Within months, he had close to 100,000 subscribers paying about $30 a year—which works out to almost $3 million in annual revenue.

It's the kind of story that couldn't happen in the United States, where many people believe content should be free. In China, meanwhile, companies and individuals alike have managed to monetize smartphone apps, making money from news, entertainment and social media—by making people directly pay for it, instead of relying on advertisers. De Dao, featured in the latest episode of the Decrypted podcast (subscribe here), is just one in a whole economy of mobile apps where people like Li Xiang can make real money.