Wednesday, 28 January 2015

Ever Wonder How Does Whatsapp Generate Revenue?

WhatsApp is a mobile messaging service that functions as a kind of a social network. WhatsApp users can send messages to one or many recipients at the same time, and they can even share their locations.
The said service is available on iOS, android, Symbian, blackberry OS and windows platforms.
Whatsapp is earning its revenue through two different ways:

1) Subscription Fee: Whatsapp allows it’s user to enjoy Whatsapp services for free for first year. However, after that it charges $0.99 for continued service. But till date, I have not heard of a single person who has paid for this service. Interestingly, Whatsapp tend to extend the free service period every time a user reaches close to the expiry date.
So this method of revenue generation that seems like the only visible revenue generation scheme is actually not generating the revenue for Whatsapp.

2) The revenue generation for Whatsapp is primarily through database management. All the conversations on Whatsapp are backed up on Whatsapp servers constantly. Our conversations reflect our interests, likes, dislikes and majorly depicts our preferences. This information is invaluable to big firms where relevant tailor made products can be offered after data sorting.

On a different note, we know Facebook has recently bought Whatsapp

Facebook has completed its purchase mobile messaging service WhatsApp for up to  $22 billion (£13.7 billion) in cash and stock in the firms biggest ever acquisition.
This is an increase on the $19 billion (£11.8 billion) initially announced as Facebook's share price has risen since the deal was first announced.
Facebook will pay $4.59 billion (£2.86 billion) in cash and 177,760,669 shares in the company, which have risen to $77 (£48) since February.

Mark Zuckerberg said WhatsApp is on path to reach a billion users.
'The combination of WhatsApp and Facebook will allow us to connect many more people round the world,' Zuckerberg said. 'We want to develop more mobile experiences like Instagram and Messenger.
'WhatApp fits this vision perfectly, it has incredibly strong engagement and growth. It's the only app we've ever seen that has grown more quickly than Facebook itself.'
'Their product roadmap is very exciting and won't change.
If you can't beat it just buy it............

Over 450 million people using the service each month.
Firm has 55 employees.
70% of those people active on a given day.
Messaging volume approaching the entire global telecom SMS volume.
Service adds more than 1 million new registered users per day.
600m photos uploaded each day.
200m voice messages sent each day.

BY Team of-Aditya Baghel 

                     Rohan Kalra 

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