Why don't they just come out and say "because, profit!" or some good ol' fashioned BS about "value-creation" or some other American thing like that ...)

I get it though, no one wants to pay for 100s of little free marginally useful things we use every day, but if you look back at what whatsapp did in the beginning, the £3 a year they were asking is so worth it

In order to switch, you also need to convince your acquaintances to switch.

Good luck with that.

The fact that Facebook hasn't "enshittified" WhatsApp 3 months after buying it is nothing short of amazing.

Those were simpler times. :')

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.

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

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.

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.

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).

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.

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.

[0] https://youtu.be/8-pJa11YvCs?t=952

I pay for email and some other services. Some other services, not so much. I find it hard to support some companies financially because I don't agree with their basic modus operandi. It's not the money; it's who it goes to.

If only we could convince large crowds to choose more free alternatives.

If YouTube was subscription only, hypothetically, I would just not use it, and my life would be same as it is now.

There are a great many services that are nice to have, but very few I would bother paying for out of my wallet. Given the choice of paying for them or not using them, I would just walk away from most of them.

I dont like that while the ad revenue barely extracts a dollar from me, my subscription suddenly expects $10-30 per month regardless of my usage.

Thats not "we need to charge you to continue our services", thats "we need to charge you and then 20x times again just because we can".

I think they are carefully riding the balance between being free for the masses with ads while milking those who have the funds to get rid of ads.

I reckon they will continue to increase their subscriber base where other streaming services are plateuing.

Certainly, YouTube Premium has been worth it for me. A big quality of life improver.

https://blog.youtube/inside-youtube/20-years-125-million-sub...

Of course, as a "free" customer I'm already subject to their whims whenever they decide to add another advertising layer.

They don’t create nor curate much content.

I am curious about the poster who has learned so much from YouTube — I have tried learning many topics from science to programming to home repairs, and finding a quality program can be very challenging, and there are a lot of programs which are actually elaborate sales pitches.

I block all ads and wish commercial ads would cease to exist even though it would mean I couldn't use somethings anymore without payment.

I would rather pay a fee than watch ads, but as long as “do neither of those” is an option I’ll be picking that. If they remove that as an option I’ll either pay or not watch YouTube.

Probably not watch.

I pay for email, and was paying for search until something about the way kagi integrates with safari annoyed me. I’ve been paying more for a seedbox than Netflix costs for longer than Netflix has existed. That’s part for ad avoidance as in it initially replaced free to air tv but ad avoidance is just one factor in the best experience for my time and money trade off I’m trying to make. So i know I’m willing to both pay for things i can get ad supported from Google and also pay for a better media experience.

When it comes to that best experience for my time and money trade off though, even with money being set at zero, the vast majority of the YouTube i watch is already in the negative. Most things i watch on there, i regret the cost of just the time it took to watch the content before ads or money even gets in to it.

Which i think is a big part of the issue with ad supported internet going fee based. YouTube and so many ad supported sites and games are already just super low value and derive most of their consumption not from people making intentional lifestyle choices of “i want to be the kind of person who watches garbage all day while playing crap” but rather people making bad short term vs long term trade offs and falling in to holes of recommendations and fun looking thumbnails.

Paying for something leads to asking yourself “is this worth $x?” And i know that for at least myself $x is a large negative number. I’d pay more than the current cost of YouTube premium to definitely NOT be able to watch YouTube.

Depends on the price.

I'm guessing lots of folks are paying $1/month to Apple to upgrade from the free 5GB tier of iCloud storage to get to the 50GB tier.

WhatsApp charged people $1 per year before being acquired by Facebook:

* https://venturebeat.com/mobile/whatsapp-subscription/

Supposedly about a billion people paid for that at the time. Even if they went to $1 per month, that'd be fairly cheap (and WhatsApp ran fairly lean, personnel-wise: fifty FTEs).

What I mean is that, IMO, ads by themselves are only a small part of the puzzle. Paying for YT premium doesn't sound enticing if it only gets rid of the ad part and not the surveillance machinery.

I do pay for my email that does no tracking and has good UX. I allow ads on duckduckgo because they actually respect my privacy and don't try to trick me all the time. I also pay for Spotify premium and have donated to Signal and Mozilla, but I won't support the likes of Google and Meta.

So the alternative seems to be "free, with ads" or "paid, with ads"

I want to pay the small fee, through a simple to use portal, that makes it obvious how to cancel, and if I'm being obligated to a multi month term or not. I also want my payment card details to be perfectly secure and for none of my private information or usage to be sold to third parties.

> who actually pays for YT Premium.

Have you ever asked them "why don't you?" Or "what would it take to get you to pay?" Or even, "would you take a free month to see if it's worth it?"

Point being I don't think the problem is nearly as black and white as you've apparently surmised.

I love paying for ad-removal. Take. My. Money.

That's because micropayments are still fucking annoying to do on both sides of any transaction:

- credit cards: cheap-ish at scale (2-5%), but users don't want to give random apps their CC details and integrating with Stripe/Paypal/whatever has the cost of UX flow break due to account details and 2FA compliance bullshit. In addition, every service paid-for by CC has the problem that only people with a CC can pay for it (so people in countries like Europe where "classic" bank accounts prevail are out of luck, and so are people in countries deemed too poor and/or fraud-affiliated are locked out entirely), and you gotta deal with tax and other regulatory compliance around handling payments as well. Oh and people will try to use your service to validate stolen payment credentials because a 1$ charge (especially for a well known service like Whatsapp) is most likely to be ignored by the accountholder even if fraudulent in nature, which in turn will lead to issues with chargebacks or, worst case, getting dropped entirely by the payment processor.

- in-app purchases: expensive (30% cut for the platform provider), serious headache to do when a significant chunk of the user base doesn't run phones with properly licensed Google Play Store (e.g. Huawei who aren't allowed to embed Play Store on their phones)

- bank transfer: possible, but restricted to the economic zones where there's enough customer base to justify the expenses of setting up a local company with a bank account (i.e. US, EU, India, possibly China), and transaction fees from the banks may end up being >>50% of the transaction's face value at such low amounts

- crxptxcurrency: even more of a hassle for customers to acquire, questionable legality / KYC issues, no realtime authorization due to mandatory waiting time for mining to confirm transactions

- pay by phone bill, premium numbers: possible, but need bureaucracy in each country, fraud / "my kid did it" complaints will run rampant, premium number calls are by default blocked in most if not all modern phone contracts ever since the early '00s and "dialer" fraud malware, difficult to associate with customer's phone number in the backend

In the end, if you truly want to capture a global audience with microtransaction payments, be prepared to deal with a loooooooooooooooooot of bullshit just to get started.

Long story short, we desperately need a global government effort to standardize payments at low fees. There's absolutely zero reason why banks and other intermediaries should be allowed to skim off more than 5% of any kind of transaction. ZERO.

But I feel a better example of paying for convenience is the Twitch subscriber system. They make it work in a way that others fail at by tying it in to various things like emotes and channel points and the general sense of supporting the creators. I know YT memberships exist, but I don't know how widely those are used and they just don't seem to get pushed as much.

The fee wasn't enforced in many developing countries, and some users elsewhere will have been jumping through the delete-and-reinstall hoops (which was painful because it lost chat history) to avoid paying.

But with 1bn active users at the time the fee was dropped, it would still have been bringing in more than enough revenue to have sustained Whatsapp as an independent business if they had chosen not to sell to FB.

That's nothing at this scale of users and speaks volumes for the ingenuity of their staff.

The only ones driving even leaner than that are StackOverflow with just nine servers [2].

[1] https://highscalability.com/how-whatsapp-grew-to-nearly-500-...

[2] https://news.ycombinator.com/item?id=34950843

That is so weird to me. "Institutions that exist for the sole purpose of serving the people might end up having some power, so let's instead give it all to the literal oligarchs."

Sure, it’s easy to get some 20 or 30-something year old with a cushy 6 figure salary to pay 20 USD or similar per month for some digital service (esp. when they are building some digital service themselves, so they know what it entails). For someone strugling to make ends meet, there’s many higher priority things than some digital service when there’s free alternatives, let alone email.

And your privacy concerns? In my experience, absolutely non-existent in the real world. Actually I only ever hear about them in HN, not even my software development coworkers. Just the other day there was some raffle where there was some weekend trip to somewhere as a prize, but you had to give all your personal details, there was a big queue, they would’ve given their blood type details (if not literally a few ccs of their blood) and told them all about their kinkiest fantasy if they’d asked for it. Literally, I’m not joking.

There must be some some number that makes it viable to have free users and paid users. For games, the free users are usually those who provide the "content".

People usually demonize freemium games but IMHO its much more benign than extracting huge sums by artificially making it worse and sell attention.

Part of me thinks the reason why they don’t offer that paid ad-free version of Facebook (which they built to try and appease the EU regulators) in the US is because their ARPU is so high that people would laugh at the price “Facebook/IG Premium” would have to cost.

Also, don’t forget that at least for now, paid subscriptions to social media apps would need to pay a 30% rent to the platform owner duopoly. This means that the price it would be it would cost would need to be 42% above than its ad ARPU just to break even.

FB does - “Meta Verified” for $16/month (presumably different depending on locale), but the benefits aren’t very good. (A verified badge, Increased account protection, Enhanced support, Upgraded profile features, Bonus stars and stickers)

In my opinion, it’s rarely about “can’t” when we’re talking about 12 bucks a month or whatever. It’s about the psychology: when a free tier exists, people reframe it in their heads that paying for that thing is an extravagance. Relatedly, removing the free tier altogether also has dangerous effects, as people immediately jump to “I can’t believe you’re taking away the free thing I used to have” outrage, while nobody complains about not having free access to say, HBO.

But yeah, I might agree that the third party clients thing is a bigger issue. Especially when the official client insists on not officially supporting Linux on ARM64 and not playing nice with Wayland. (Seriously, Signal on Linux is so blurry!)

Maybe financial pressure will push Signal to promote its crypto more in future.

What about Signal? It seems like they run on donations, don't they?

Revolut will probably get there first

>It's 100% unrealistic that a global, always on, high availability, high security service is free. These things are expensive and they need to be monetized.

Do you have any information how much whatsapp costs per user per month? Threema seems to be doing fine with just one 5$ forever.

I switched phones and lost all my history. Now I’m fairly careful with these things, and make backups, but even I wasn’t able to get it back. Couldn’t recommend it to anyone since.

There’s a line between being secure and being useful, and they’re slightly unbalanced in Signal.

https://trends.google.com/trends/explore?geo=NL&q=%2Fm%2F012...

Credit where credit is due, Microsoft needed more than a decade to kill skype. It was so resilient and entrenched.

And if you want add something that makes sure the user is paying attention, then you have seen this advertising mode: it's basically the second ever Black Mirror episode.

Isn't this because Facebook is paying telcos to keep its services free? https://en.wikipedia.org/wiki/Internet.org

> In April 2011, Sequoia Capital invested about $8 million for more than 15% of the company, after months of negotiation by Sequoia partner Jim Goetz.[63][64][65]

> By February 2013, WhatsApp had about 200 million active users and 50 staff members. Sequoia invested another $50 million, and WhatsApp was valued at $1.5 billion.[26] Some time in 2013[66] WhatsApp acquired Santa Clara–based startup SkyMobius, the developers of Vtok,[67] a video and voice calling app.[68]

> In a December 2013 blog post, WhatsApp claimed that 400 million active users used the service each month.[69] The year 2013 ended with $148 million in expenses, of which $138 million in losses.

I mean, when Facebook bought WhatsApp for billions, what did people expect? How else were they going to monetize?

[1]: https://www.sec.gov/Archives/edgar/data/1326801/000132680114...

Actions speak louder. He did acquiesce - he sold to an ad-financed company.

> and hold that POV to this day.

You can hold any POV when nothing depends on it.

Fair enough, but the founders don't necessarily make these decisions. I wasn't particularly referring to them. If they got VC money (I don't know if they did or not) then the VCs must've had something in mind to get a decent return on their risk.

Onlyfans girls channels.

See the image here: https://en.wikipedia.org/wiki/Tier_list

Popular format on Youtube, reddit, etc.

> We can't read your messages or listen to your calls, and no one else can either.

Should we be suspicious of Signal as well?

Don't sell yourself short ... they did all the things to make ads doable it was just not feasible to make them not terrible.

It’s frustrating that it’s basically only Telegram and WhatsApp that take desktop platforms seriously.

People behind Signal have a very corporate approach to their app where a permanent "no" doesn't exist when it comes to user choice - all what you have is "not now".

Then there's linking devices; it's not permanent but temporary and devices are removed automatically after 30 days. You can't even log into your account with tablet any more - that was replaced with linking. Cross-platform synchronization - didn't work for me at all despite being a loudly announced success.

The slightly longer version of the story is that my wife, travelling alone, had some trouble with an iPhone update (it hung for hours), and so she took it to the nearest Genius Bar; they eventually got the update to apply, but then did a factory reset “just to be safe”. Of course, everything except her Signal message history was restored from the automatic iCloud backups. She was devastated, and refuses to touch it now.

Please do not reply to say this was the fault of the Apple Store employee. It was, but at the same time, it also very much wasn't.

To be fair I've met plenty of non-techie types whose phones were "full" of stuff from WhatsApp or photos that had already been backed up, because the idea they could clear their local storage would never cross their minds. I've seen people buy new phones instead of clearing their cache.

What is the alternative though? A private chat app, mobile + desktop, syncing, with enough ease of setup and use for normies to adopt? I don't see it.

Ads will make more people Signal-curious, or even drive people back to text messages. The average person who switches will convince a non-zero number of their contacts to come with them. The shift will start gradually. Think of Skype, which at one point everyone I knew was on. That network didn't protect them from being replaced by competitors.

People are also increasingly worried about retaliation from the government for their supposedly free speech, which has already driven a few people I know to secure alternatives that aren't operated by Trump allies.

I use the hosts file from there, and edit it manually via "adb root" (lineageos. root only via adb)