According to Strategy Analytics over the top (OTT) messaging applications are creating new business models in the telecom industry.
Globally, messaging applications like KakaoTalk, TicToc Plus and WeChat are gaining popularity. Nearly all the OTT messaging applications share many common features ? the most prevalent being the shared lack of a monetising messaging. These services are seeking to build a large audience and achieve monetisation from the sale of virtual goods and other items.
According to Strategy Analytics operators should take comfort from the fact that the virtual goods business model focusing on personalisation may find favour with the mass market. Also, with free alternatives, the ability to charge for messaging services in short-term seems unlikely, thereby, forcing messaging companies to find alternative ways of monetising their services.
Going forward, messaging applications will drive more than $36 billion in revenue by 2017. However, the research firm cautions that the notion that OTT messaging services can be perpetually revenue free will proliferate until one service fails. Thus, making consumers realise that eventually they will have to pay for thee services.
