Worried about Signal, WhatsApp is taking out full page ads in Indian Newspapers
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- paid $19 billion to buy whatsapp
- Removed whatsapp’s subscription model and given it away for free
- Has been paying the bills for the infrastructure and maintenance costs of a massively popular service
- Paid for a full page advertisement in newspapers with claims that whatsapp data will not be monetized like the other Facebook services
This makes zero sense to me. Everything about whatsapp looks like an expense to Facebook. Can someone more knowledgeable please help make sense of this situation?
You offer a product that would normally be paid, for free and gain market share. Then you build a business on top of that customer base you created.
That's where WhatsApp comes in for Facebook. They've gained huge market share, now they can attract businesses that want to sell directly to consumers. This is pretty handy and common in countries like Brazil.
Before people start shouting against Facebook, I'll reiterate that every company does this: - Microsoft did by driving PCs' prices down so they could gain software market share. - Stripe does it, with things like Stripe Atlas. They commoditize creating your own business by making it very simple. The idea is that [some of] those new businesses will eventually use Stripe and will help the company grow.
This is a pretty common pattern.
Almost everyone has WhatsApp, much more people than have Facebook. And Facebook is slowly dying.
Facebook bought WhatsApp (and also Instagram) so Facebook the company has a future. Because it’s not quite sure Facebook the network has one.
Foreign countries have no real alternative: there is no way to lobby Big Tech for change. They have no real voice far away in Washington DC.
In some cases they can just block some site or app and insist people use the locally developed alternative, but this isn't really all that effective. Usually the local alternative has some deficiencies, and it doesn't always work: look at the way Russia failed to block Telegram a few years ago.
But I agree what you say is true when it comes to emerging countries. But then again, maybe they do.
Take Brazil or India as examples. They have such massive population that if they wanted to, they could impose financial penalties to Facebook for doing that. The problem is figuring out if politicians in those countries have the incentive to do that though.
https://abc7news.com/automotive/dmv-makes-$50m-a-year-by-sel...
https://www.indiatoday.in/auto/latest-auto-news/story/govt-s...
WhatsApp has big market share but as a foreign company asking users to accept a less private policy, people are understandably going to seek alternatives, and potentially even build them.
WhatsApps big hope in India is payments processing but recent government policy changes allow payment payment processors a max of 30% of total payment volumes per app (https://www.bloombergquint.com/business/npci-imposes-cap-on-...) which probably makes the prospect less exciting, and with users beginning to seek greener pastures for messaging apps, I'm curious what WhatsApp's next play in India will be.
https://trends.google.com/trends/explore?date=today%203-m&ge...
Facebook owned companies have a long history of distrust from the Indian public and this has played out at least one earlier time with Facebooks attempt at a free internet in India, being labelled the equivalent of the British empires attempt at colonization [2]
The narrative in India (Or other parts of the world where i have large teams who have a casual enough relationship with me to talk about these issues) isn't presently helped by the happenings in the US where large US tech companies have effectively levied sanctions against entities with political affiliation to one political movement.
This is anecdotal, but i'm hearing a lot of "What happens if they decide tomorrow that we don't fit their values?" ; There's also an ongoing financial dispute that has prompted Google to block Australian news sites [3] and the forums there are split between the two sides and how this diminishes independence of media thanks to unparalleled market power of tech companies.
[1a] https://www.wired.com/story/how-whatsapp-fuels-fake-news-and... [1b] https://blog.whatsapp.com/more-changes-to-forwarding [1c] https://www.theguardian.com/technology/2018/jul/19/facebook-... [2] https://www.bbc.com/news/technology-32795270 [2] https://www.afr.com/companies/media-and-marketing/google-blo...
WhatsApp's actual ToS mentions they do have access to location data.
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"All that for a drop of blood?"
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"If it bleeds, we can kill it"
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"Avengers Assemble."