How WhatsApp Makes Money
WhatsApp was in 2009 by Brian Acton and Koum as to SMS services. The app users to their contact book and message anyone has the app , at no cost. for iPhones, Androids, Blackberries, Windows Phones, Nokia phones and, , desktops.
One at a Time and
The short answer be $1 at a time. In some countries, the app $1 to download; in others, the primary year is free, year $1 – in words, WhatsApp had a subscription model. At this model, 700 million users worldwide; yearly revenue at $700 million at . In 2016, Facebook } 10-Q filing that as a result of WhatsApp was monetized in “a very fashion,” not be generating revenue , hinting that the strategy would . Shortly WhatsApp nounced post that of subscriptions had to a , app would be use. There are still no ads app, however. “Starting this year, tools that you to use WhatsApp with businesses and organizations that you want to hear from,” wrote at the time. The goal is to communicate directly with i.e. their banks, airlines etc.
over the app, pick up the bill paid through subscriptions. WhatsApp’s financial statements public (Facebook break down its revenue by the company), Forbes total revenue to be $5 billion average revenue per user to be $4 by 2020. As of February 2018, WhatsApp had over .5 billion users and sees billion messages sent per day, Facebook Mark Zuckerberg 2017 .
Outside of America, text messages is , SMS apps are and have monetized. WeChat – Chinese SMS app has ads as games.
is for Tencent’s, owns WeChat, $6 billion revenue third quarter of 2016. The app has over 846 million active users.
Whats app is adding around users per day, in , and Europe. With SMS apps, growth is exponential – one person downloads and advocates the app, new users the app with person. These new users then encourage members of their social to use the app. By increasing , the app becomes indispensable user base grows.
Find statistics at Statista Is it Though? insiders have speculated that the behind WhatsApp was for Facebook to access user’s . With location sharing , billion messages sent per day, and access to users’ entire contact lists, Facebook has access to – all uploaded and saved on its servers. Mark Zuckerberg has that this won’t be improve targeting in Facebook ads, be unless the user changes the settings to not share with Facebook. End-to-End WhatsApp, as (including Apple), in with governments world determined that terrorists used apps to communicate before, and during, attacks. Governments and counter-terrorist agencies behind these apps to share the key access to messages sent and received by the terrorists. , however, refused to oblige. This to WhatsApp’s adoption of end-to-end , prevents anyone, WhatsApp, except the sender and receiver from gaining access to shared on the app. Line that Facebook overpaid for WhatsApp or not, is that the app growing revenue stream with to grow.