An article published in WSJ states that the rise of texting apps like Line and WhatsApp has taken away $23 billion in revenue from mobile carriers!
The business of texting (SMS) when started was free as at that time the carriers (mobile service providers) had no clue how to monetize it !
When they did figure out eventually they squeezed humongous margins (sometimes up to 2000%). Things could not be better till messaging apps like WhatsApp, Line On and many others entered with free or almost free service.
Entry of these players were particularly bad for RIM now known as BlackBerry. I find it rather funny when folks at BB keep harping about BBM (Black Berry Messenger – their proprietary messaging service) being the next best thing after sliced bread !It may be safer but how many of us need that kinda security good enough for the US government for our daily chats?
These new breed of messaging apps have also started nipping away at social media giants like FB..Sharing photos or video is lot more convenient with out having to worry about security or privacy settings of “FB Wall” etc.
Point to be noted is that all these players in trouble are top notch tech giants caught napping by these nimble start-ups…
Makes me wonder whose job was it to track this – Marketing or Sales or Risk or Technology (CIO) ?