4 ms·
I agree that $1/yr would shove off majority of users off the app. That said, I think WhatsApp could get to revenues of $1-3B per year because of the following:
by ozgune 8y ago
I agree that $1/yr would shove off majority of users off the app. That said, I think WhatsApp could get to revenues of $1-3B per year because of the following:
* I pay $60/mo for my AT&T line. I do the majority of my communication over WhatsApp. In that sense, WhatsApp adds more value to my life than AT&T. There are a group of users who'd be willing to pay more for that value.
* For most users, WhatsApp is an integral part of how they communicate with friends, family, doctors, coworkers, etc. As a consumer, it isn't just an "app" but an integral part of their communication flow.
* WhatsApp is respected by international telcos. I know at least for the telcos in my home country that they'd be happy to charge for WhatsApp subscription as part of their packages.
I think the primary problem was that even if WhatsApp could monetize $1-3/yr per user on average, it still wouldn't have met FB's revenue expectations.
- deleted 8y ago[deleted]
- sp527 8y agoI honestly believe the friction of paying any non-zero amount at all for a messenger app is more than what 80%+ of users would be willing to bear psychologically. They would almost certainly just migrate to a different app. That's also where WhatsApp's group emphasis becomes a huge drawback - groups would tend to migrate together, making it easier and quicker for the whole network to unravel.
- underwater 8y agoWhatsApp relies on network effects to be successful. If you get less than 100% of users continuing to pay and use the product then the utility goes down; the paid product is actually worse than the free version.