• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
Tech

WhatsApp is Now Free. Why Facebook is Resisting Easy Money.

By
Adam Lashinsky
Adam Lashinsky
Down Arrow Button Icon
By
Adam Lashinsky
Adam Lashinsky
Down Arrow Button Icon
January 19, 2016, 8:52 AM ET
US-IT-TAKEOVER-FACEBOOK-WHATAPP
Logo of WhatsApp, the popular messaging service bought by Facebook for USD $19 billion, seen on a smartphone February 20, 2014 in New York. Facebook's deal for the red-hot mobile messaging service WhatsApp is a savvy strategic move for the world's biggest social network, even if the price tag is staggeringly high, analysts say. AFP PHOTO/Stan HONDA (Photo credit should read STAN HONDA/AFP/Getty Images)Photograph by Stan Honda—AFP/Getty Images
Add Fortune on Google for similar content.

I marvel at how Facebook zigs where others zag.

WhatsApp, the messaging company Facebook (FB) bought a couple years ago for $19 billion, said Monday it’ll no longer charge a $1 annual subscription fee for some users after their first year. The amount seems trivial, until you consider that WhatsApp, according to a company blog post, has nearly 1 billion users.

The bit about zigging versus zagging is that the Facebook unit is abandoning subscriptions just as the rest of the world is going gaga for them. Netflix (NFLX) , HBO, The Economist and others are widely admired because customers pay top dollar to be entertained and informed by them on an ongoing basis. No trashy content or trashier advertisements for entities like this. (HBO and Netflix sell no ads.) Or consider high-quality podcasts like Serial, which sell high-priced (and classy) ads to reach subscribers who don’t pay anything at all.

Then there’s WhatsApp, which said collecting a buck from such a big pool of users, many of whom don’t have debit or credit cards, was getting too difficult. The company’s response won’t be advertising, by the way. Moving to the revenue model that has made its parent, Facebook, worth $268 billion would be too logical. Instead, WhatsApp is exploring ways to charge businesses to message their customers.

Get Data Sheet, Fortune’s technology newsletter.

As an aside, I picked up a fresh piece of lingo from a Wall Street Journal dispatch on the WhatsApp move. It quoted WhatsApp co-founder Jan Koum, speaking at the DLD European technology conference in Munich, making reference to the “so-called commercial-participation model.” This is significant as it’s an evolution of the ultra-successful “freemium” model that only charges certain customers, typically those willing to pay for premium features or more volume. “Commercial-participation” suggests soaking companies to subsidize consumers, an echo of Google (GOOG) making its outstanding search results free but charging for search-driven ads next to them. Smart.

More on Facebook’s revenue model:

Facebook’s willingness to experiment and to take the product-development high road reminds me of another Google move, its years-ago refusal to slap schlocky ads on early YouTube videos. Few companies can resist easy revenue in search of bigger businesses. The best ones can.

About the Author
By Adam Lashinsky
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

$5 billion tech CEO says unemployed Gen Z should be out 3 days a week building their network: ‘Sometimes those jobs you want, they’re never published’
SuccessCareers
$5 billion tech CEO says unemployed Gen Z should be out 3 days a week building their network: ‘Sometimes those jobs you want, they’re never published’
By Orianna Rosa RoyleJuly 21, 2026
2 minutes ago
A Jersey Mike's logo is displayed outside one of their stores in San Diego, California.
InvestingIPOs
Jersey Mike’s IPO valuation could reach eight times Sweetgreen’s market cap
By Sheryl EstradaJuly 21, 2026
2 minutes ago
LaLiga president says tech is already making the fan experience better, and it could solve football’s money problem too
AISports
LaLiga president says tech is already making the fan experience better, and it could solve football’s money problem too
By Catherina GioinoJuly 20, 2026
11 hours ago
A 13-year-old teenage boy looks at an iPhone screen displaying various social media apps.
PoliticsSocial Media
French President Macron backs effort to ban kids under 15 from social media before departing office next year
By The Associated Press and Samuel PetrequinJuly 20, 2026
11 hours ago
Photo of Hugging Face cofounder and CEO Clement Delangue.
CybersecurityAI agents
Hugging Face says it resorted to a Chinese AI model to battle a fully autonomous cyberattack because U.S. model guardrails stymied its defense
By Emily ForliniJuly 20, 2026
12 hours ago
Sumeet Agrawal is VP of Product Management (Data, AI Governance & Context Engineering for Agentic Systems) at Salesforce.
CommentaryAI agents
Salesforce VP on the leaky AI pipeline: why cheaper tokens won’t fix enterprise AI
By Sumeet AgrawalJuly 20, 2026
17 hours ago

Most Popular

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Success
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
By Sasha RogelbergJuly 20, 2026
13 hours ago
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
Success
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
By Sydney LakeJuly 20, 2026
18 hours ago
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
AI
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
By Jason MaJuly 18, 2026
2 days ago
Warren Buffett says his $147 billion investing career was an accident: ‘I may be one of the 10 luckiest in the world’
Future of Work
Warren Buffett says his $147 billion investing career was an accident: ‘I may be one of the 10 luckiest in the world’
By Sarah GlodekJuly 20, 2026
1 day ago
Current price of silver as of Monday, July 20, 2026
Personal Finance
Current price of silver as of Monday, July 20, 2026
By Joseph HostetlerJuly 20, 2026
21 hours ago
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
Retail
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
By Sasha RogelbergJuly 20, 2026
21 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.