UNITED STATES       UNITED KINGDOM   FRANCE
Boston MA Ohio Milton Keynes  
Strategy Analytics Inc Strategy Analytics Inc Strategy Analytics Ltd. Strategy Analytics
199 Wells Avenue Suite 108   Bank House, 171 Midsummer Boulevard 15, rue Reaumur
Newton MA   Milton Keynes 75003 Paris
MA 02459   MK9 1EB France
USA USA United Kingdom  
Tel: +1 617 614 0700 Tel: +1 617 614 0716 Tel: +44 1908 423600 Tel: +33 1 53 40 99 50
Fax: +1 617 614 0799
  Map/Get Directions
Fax: +1 614 431 2343 Fax: +44 1908 423650
  Map/Get Directions
Fax: +33 1 53 40 99 59
  Map/Get Directions
       
      GERMANY
Los Angeles San Francisco Bay Area London  
Strategy Analytics Inc Strategy Analytics Inc Strategy Analytics : Teligen Strategy Analytics GmbH
3282 Cortese Drive 2610 Presidio Dr. Great West House, Great West Road Sebastiansplatz 5
Los Alamitos Brentwood Brentford D-80331 Muenchen
CA 90720 CA 94513 Middlesex, TW8 9DF Germany
USA USA United Kingdom  
Tel: +1 617 614 0719 Tel: +1 617 614 0732 Tel: +44 2081 850402 Tel: +49 89 51 51 35 0
Fax: +1 562 493 0280 Fax: +1 925 308 7727 Fax: +44 2081 850419
  Map/Get Directions
Fax: +49 89 51 51 35 55
  Map/Get Directions
       
JAPAN   KOREA CHINA  
       
Strategy Analytics Inc Strategy Analytics Inc Strategy Analytics Inc  
Level 18 Yebisu Garden Place Tower 16F, Gangnam Bldg., 1321-1 59-2-102 Beijing Suncity  
4-20-3 Ebisu Shibuya-ku Seocho-dong, Seocho-gu No. 30 Litang Road, Xiaotangshan  
Tokyo 150-6018 Seoul, 137-070 Changping District, Beijing  
Japan Korea P. R. China 102209  
Tel: +81-3-5789-5935 Tel: +82 2 310 9122 Tel: +86 10 8975 5246  
  Fax: +82 2 757 7100 Fax: +86 10 8975 5246  
       
       
Informatek PK & Wise    
Grande Maison Akasaka 601 6F J's Building    
2-7-52 Akasaka Minato-ku 1487-4 Seeocho-dong Seocho-gu    
Tokyo 107-0052 Seoul 137869    
Japan Korea    
Tel: +81 3 3582 0014 Tel: +82 2 597 8756    
Fax +81 3 3582 0040 Fax: +82 2 598 9444  
close

close

Over the top messaging apps Line, KakaoTalk and others are destroying billions in revenue

More than $3B in operator messaging revenue will be eradicated between 2012 and 2017

Boston, MA - March 6, 2013 - As WeChat surpasses 300M users, iMessage exceeds 250M and LINE nears 100M users the over the top messaging craze is in full swing.

According to the Strategy Analytics report A LINE in the sand: How KakaoTalk and others messaging apps are destroying revenue over the top messaging apps are a threat not only to messaging revenues, their success also demonstrates how apps can crater existing business models without replacing revenue.

Nearly all the over the top messaging apps share many common features - the most prevalent is a shared lack of a monetizing messaging. Instead, these services are seeking to build a large audience and look to monetize from the sale of virtual goods and other items. The runaway success of apps launched Asia Pacific - where LINE, KakaoTalk, TicToc Plus and WeChat are dominating - reflect the global innovation and do not necessarily ensure global dominance. Operators should be heartened that the virtual goods business model focusing on personalization may not play with the mass market in these regions or western consumers. With so many free alternatives the ability to charge for messaging services seems unlikely forcing messaging companies to find other ways to monetize. Failure to do so will likely doom some of the high flying companies today - unless those companies are acquired by larger corporations that use them as brand extensions.

According to Josh Martin, Director, Apps Research, "Apps will drive more than $36B in revenue by 2017. However, billions in revenue will also be destroyed and never replaced. The notion that over the top messaging services can be perpetually revenue free will proliferate until one service fails - making consumers face the stark reality that everything has a price. As over the top messaging services transition to social networks, the need for them to maintain eyeballs could provide an opening for Joyn - an operator backed OTT messaging initiative. Without the need for advertising revenue, Joyn could extend beyond a messaging app and turn into a platform that attracts third party developers and with them innovation. If operators can build a platform with robust API and developer support they can differentiate from the competition and perhaps open a new revenue stream for themselves."

Press release contact

Josh Martin
Phone number: +1 617 614 0730
Email: Contact me
© 2014 Strategy Analytics