alt Hacker NewsI remember when Whatsapp became a paid app, I can’t remember the details as I believe they varied by platform (iOS vs Android) but it was either €0.79 or €0.99, I’m not sure if one off or yearly payment, but it doesn’t matter.
I, as the “computer guy”, had friends and family asking how to pirate it. This is coming from SMS costing €0.25 per message (text only!) and also coming from people who would gladly pay €3 for a Coke at a bar that they’d piss down the toilet an hour later. It didn’t matter if it only took 3 or 4 messages to make Whatsapp pay off for itself, as they were sending dozens if not hundreds of messages per day, either images, videos and whatnot (MMSs were much more expensive).
At that moment I realised many (most?) people would never pay for software. Either because it’s not something physical or because they’re stuck in the pre-Internet (or maybe music) mentality where copying something is not “stealing” as it’s digital data (but they don’t realise running Whatsapp servers, bandwidth etc cost very real money). And I guess this is why some of the biggest digital services are ad-funded.
In contrast, literally never someone has voiced privacy concerns, they simply find ads annoying and they’ve asked for a way to get rid of them (without paying, of course).
I should say, I’m from one of the European countries with the highest levels of piracy.
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> people would never pay for software.
I see this and not see this.
See this = friend wants to check out app but it costs $1-$3. I'm like, that's less than a coffee or a candy bar that you consume disposably. Why not just try it and if it's sucks throw it away, the same way you might with a new food item? That argument doesn't work on them for some reason.
not see = Steam
> people would never pay for software.
I mostly share your conclusion, but I think there is a specific twist: most people will pay for on the spot transactions.
We see it in spades for games: in-app purchases and season passes have a lower barrier of acceptance. I assume buying stones to unlock a character must be thought at the same level as buying coffee, as just a one-time purchase that doesn't require further calculations.
On the other hand, I did pay the $1 for Whatsapp back in the day and I was promised it'd be ad free. Want that $1 back, I actually even deleted my account and uninstalled Whatsapp!
The problem with paying a small fee for a service is not the fee itself. It is the friction for paying for the service and the hassle that comes after the payment.
Now the credit card company knows what service I am buying; I would get endless marketing emails from the service for buying additional things; my info as a person willing to pay for such a service would get sold to other companies; my credit card info would get leaked/stolen, ...
If the whole experience was literally as simple as handing someone a $1 bill, I promise I would pay for many many internet services.
Similar situation as flights. People complain about lack of space, misc fees etc. But when it comes down to it, people for the most part, still pick the cheapest flight.
I think the other factor is a bit of anchoring. I know this impacts me anyways. If there is a "free" alternative, then that's where I'm anchored at. I can watch youtube for free so paying for it seems like a bad deal. Where as there is no free alternative to Coke that still gets your Coke (as opposed to say water).
>> I, as the “computer guy”, had friends and family asking how to pirate it.
To be fair, that was in era when pirating was such a normal thing. Everybody at least knew about it. Cheap pirated DVD's were super common (I received them as gifts even) and everyone knew someone selling them. With people accustomed to paying for Netflix, music streaming, Office 365, etc. maybe a subscription version of WhatsApp would be more palatable. The problem is nobody will pay as long as the tech behemoths are offering the same thing for free.
> ... Whatsapp became a paid app ... it was either €0.79 or €0.99, I’m not sure if one off or yearly payment, but it doesn’t matter ...
Interestingly, WhatsApp put up paid plans to slow down user acquisition [0].
On Androids, in some countries, WhatsApp continued to work even if you didn't pay the $1/year fee.
I don't think you can make the conclusion you make.
In this case the service started as free (and thereby training people that it costs nothing) and and only later tried to pull the rug out under people after locking them in via network effects. It's perfectly reasonable to refuse to financially reward such tactics.
It's also that people already pay ridiculous amounts of money for their own internet connection. There is no reason why with A paying for internet and B paying for internet that A and B should pay again just to be able to talk to each other. Of course the technical reality is different but that's at least partially due to how WhatsApp designed their system.
A lot of normal consumers pay $20 a month for ChatGPT. I think most software gets bid down in price bc the marginal costs are zero. Where it’s not (llm token generation) prices don’t plummet and consumers build a different expectation.
Sounds like my memories of being the computer guy in Italy.
Or because back then only credit card payment was possible?
all my family paid happily for Whatsapp. Then we got refunded because Facebook bought them. Now we get ads. Yay :)
Consumer stance on paying for software has changed drastically now because of AI. Even outside of utility software like Chat GPT, people are paying for image generators etc.
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When the Apple App store came along it was wild seeing how quickly software went from $10 down to 0.99c in the space of less than a year. And then it was only a matter of time before it dropped to zero. Once it hit zero, the tolerance for payment of any kind went to zero as well for a very large portion of people.
Apps and the internet in general, for most people, is considered almost weightless and zero cost. In the race for market dominance meant dropping the price as low as possible to drive out competition.