How do messengers make money? Line · KakaoTalk · WhatsApp · WeChat business model and content distribution platform strategy comparison
- A content distribution platform consists of three components: content, transactions, and users.
- The line was a sticker, KakaoTalk opened a revenue model with a game fee.
- WeChat is expanding from a Chinese version of KakaoTalk to a Chinese life platform.
Contents
Where do you get your daily free messenger apps from? The answer is to look at Messenger not as a conversation tool, but as a distribution platform that buys and sells content. This article compares the growth process and revenue structure of Line, KakaoTalk, WhatsApp, and WeChat 4 services.
What is a Content Distribution Platform?
Data shows that content distribution platforms have evolved from analog to online, mobile, smart, and social platforms. The platform consists of three elements: content, transactions, and users. Twitter and YouTube are difficult to see as distribution platforms because there is no trading system at the time, and Apple App Store, Google Play, and Facebook are examples of three elements. The basic principles of the platform can be seen in the network effects and platform economics documentation.
The global smart content market has grown at an annual average of 18.8% from $136.5 billion in 2012 to $229.3 billion in 2015.
Why did Messenger become a platform?
Mobile has kept people on hold, solving the access issues that are at the heart of the content business. So the race to acquire Messenger was fierce: WhatsApp went to Facebook for about $19 billion, Rakuten in Japan bought Viber for $900 million, and Alibaba took an 80 percent stake in Tango.
66.8% of smartphone users in Korea say messenger is the most frequently used function, and the figure of data that more than 90% use KakaoTalk also explains why messenger became the entrance to content distribution.
학교 수업에서 한 과제도 배운 점 중심으로 쓰면 좋은 경험이 되더라고요. 관심 있는 직무의 하루 일과를 한번 알아 두는 것도 좋을 것 같아요.
How did Line and KakaoTalk make a profit?
The line, which came out in June 2011, took the lead in Japan with a powerful weapon called a sticker. In the third quarter of 2014, about 230.8 billion won of Naver's revenue, 33% of which was earned overseas thanks to the line. In addition, the Creator's Market allows users to sell self-made stickers, creating a structure that allows the buyer to be a seller. Meanwhile, KakaoTalk, which came out in March 2010, made its first profit from fees for connecting games, and then increased its business to advertising, shopping, content, and finance.
| Factor | Causes of KakaoTalk Growth |
|---|---|
| Price | Quickly collect users because they don't get paid |
| Contact Integrations | Only your saved number populates your friends list |
| Group Room | Multiple people talking on one screen |
| Timing | About two months earlier than similar service |
Both services have one thing in common: they've turned the conversation space into a transactional space, with content like games, stickers, emojis, and music on top of the messenger.
How did WhatsApp and WeChat grow?
Founded by Jan Koum and Brian Acton while working at Yahoo in 2009, WhatsApp was more comfortable than texting, and in February 2016, it reached 1 billion users. WeChat, which Tencent launched in January 2011, attracts 5 million subscribers in three months, 50 million in ten months, and 500 million monthly active users.
The fact that WeChat, formerly known as China's version of KakaoTalk, is expanding into a Chinese living platform shows that messengers can grow into a vessel for the entire daily service.
How does your messenger compare at a glance?
| Messenger | Launch | Features |
|---|---|---|
| Line | Naver family established first in Japan | Sticker sales and user creative markets |
| KakaoTalk | Virtually dominate the domestic market | Expand your reach from game brokerage commissions |
| From Silicon Valley, USA | Simplicity in place of texting, then Facebook | |
| Tencent, China | Beyond the conversation, the window to services for life as a whole |
The data suggests that with the proliferation of mobile platforms, messengers can grow into the content distribution platform of the future, and that each service has taken different paths depending on the region and killer content.
References: Rochet, J.-C., & Tirole, J. (2003). Platform competition in two-sided markets. Journal of the European Economic Association, 1 (4), 990–1029. Deals in two-sided market platform competition.
FAQ
What are the three elements of a content distribution platform?
content, transactions, and users.
How much did Facebook acquire WhatsApp for?
That's about 19 billion dollars.
What is the killer content of the line?
This is a sticker.
Who created WeChat?
Tencent and launched in January 2011.