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Ask HN: How does WhatsApp make money?

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Re: Ask HN: How does WhatsApp make money?

#11
post #6
post #4

My speculation - Facebook might mine the conversation data & sell that to third party/show targeted ads on Facebook.

Whatsapp is end to end encrypted. Facebook is not able to see the contents of Whataspp messages.

Well, that's what they say, but being closed source it's reasonable to think there might be backdoors somewhere. Besides, WhatsApp is not p2p, but client server based. Nobody knows for sure if the NSA Prism program still exists, but it does, Facebook would probably be part of it.

Re: Ask HN: How does WhatsApp make money?

#12

By using your conversation metadata, to sell you better ads or sell the data to other advertisers. >b-b-but it's encrypted! Doesn't matter. They know who you are, because your account is linked to your FB account (either directly or just by matching your phone number). Then you send them your full contact list when you install the app (have you tried using WhatsApp without the Contacts permission?). Then they can see…

At least in Europe that is not true, from their official page

"We do not share data for improving Facebook products on Facebook and providing more relevant Facebook ad experiences.Today, Facebook does not use your WhatsApp account information to improve your Facebook product experiences or provide you more relevant Facebook ad experiences on Facebook. This is a result of discussions with the Irish Data Protection Commissioner and other Data Protection Authorities in Europe[...]

Importantly, WhatsApp does not share your WhatsApp contacts with Facebook or any other members of the Facebook Companies, and there are no plans to do so."

https://faq.whatsapp.com/general/security-and-privacy/how-we...

Re: Ask HN: How does WhatsApp make money?

#13
post #5

Whatsapp didn't have end-to-end encryption until April 2016. The app used to cost €0.89 per year (which I guess was $1 at the time). I'd be surprised if Facebook had bought WhatsApp looking for revenue. Even if the service is operating at a loss, it's still providing FB the messages (at the very least, their metadata) and personal data of two billion people.

How will they get any messages if they are end to end encrypted?

To be fair, I don't think they get much value from encrypted content. This doesn't mean they can't log every single thing you do with a timestamp attached to it. Privacy and anonymity are not the same thing.

Re: Ask HN: How does WhatsApp make money?

#14

By using your conversation metadata, to sell you better ads or sell the data to other advertisers. >b-b-but it's encrypted! Doesn't matter. They know who you are, because your account is linked to your FB account (either directly or just by matching your phone number). Then you send them your full contact list when you install the app (have you tried using WhatsApp without the Contacts permission?). Then they can see…

have you tried using WhatsApp without the Contacts permission?

Not to be pedantic about an off-hand comment, but yeah, works fine, AFAICT. I'm not even a "pro" WhatsApp user: I use it strictly for the one social group that didn't think SMS was good enough. Meaning I didn't have to know the secret incantation. I'm sure I was asked about contacts, to which I assume I said "FB? Hahaha, no way!" And if I go to the Status tab, it sho'nuff complains about me not uploading contacts and if I want status of all my WhatsApp peeps, I need to upload contacts.

Re: Ask HN: How does WhatsApp make money?

#15
post #13

Earlier quoted context omitted.

How will they get any messages if they are end to end encrypted?

To be fair, I don't think they get much value from encrypted content. This doesn't mean they can't log every single thing you do with a timestamp attached to it. Privacy and anonymity are not the same thing.

Adding a bit to this the contents of the message are E2E encrypted but the metadata is probably still available (sender, receiver, timestamp, etc). FB probably already has the phone numbers of most of users in WhatsApp and can use the metadata to make inferred decisions about those users.

Re: Ask HN: How does WhatsApp make money?

#16

By using your conversation metadata, to sell you better ads or sell the data to other advertisers. >b-b-but it's encrypted! Doesn't matter. They know who you are, because your account is linked to your FB account (either directly or just by matching your phone number). Then you send them your full contact list when you install the app (have you tried using WhatsApp without the Contacts permission?). Then they can see…

> have you tried using WhatsApp without the Contacts permission?

Yes. It works. Reaching out to new people is a PITA, as you have to append their phone number to a an api.whatsapp.com/send?phone= URL and open that on your phone, but it works.

Re: Ask HN: How does WhatsApp make money?

#18
From Businesses - small and large. Using the WhatsApp API. That alone is a multi-billion dollar opportunity.

For example, people like my startup (https://www.zoko.io) provides software that enable folks to run any business on (only) WhatsApp.

WhatsApp would make money by - charging for certain types of messages sent via the API (already doing it) - from ads on the WhatsApp, Facebook and Instagram Platform that click directly to WhatsApp.(already doing it) - enabling payments via WhatsApp Pay and then take a cut of the payments. (coming soon)

I am amazed by the things that my customers do with WhatsApp - like Fintech companies who provide loans to Uber drivers via WhatsApp, OR Fertility Clinics that dole out professional advice on how to make babies, via WhatsApp.

WhatsApp is just getting started! Remember when the internet was free, Google showed up and became a toll collector for doing anything on the internet? Just like that, WhatsApp is the internet of the #nextbillion people. WhatsApp, if they play their cards right, could become the "toll collector of the internet for the #nextbillion". I am literally all in, that it will.

Re: Ask HN: How does WhatsApp make money?

#20
post #13

Earlier quoted context omitted.

How will they get any messages if they are end to end encrypted?

To be fair, I don't think they get much value from encrypted content. This doesn't mean they can't log every single thing you do with a timestamp attached to it. Privacy and anonymity are not the same thing.

Yes, they also get location (coarse or fine), media type (text chat, voice or video call), duration, any attachments sent (probably including file type, name and size, and frequency of contact, - all timestamped as you say.
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