Telegram has taken a unique approach to monetization compared to other popular messaging platforms such as WhatsApp, Facebook Messenger, WeChat, and LINE. While many messaging apps have adopted paid subscription models or in-app advertising and promotions, Telegram has so far avoided these monetization tactics in favor of other innovative strategies.
Telegram is considered a “freemium” service as users can enjoy the basic features for free, but paid subscriptions are available to unlock additional premium features. Unlike other messaging platforms, Telegram does not place ads or in-app promotions and has stated they never will due to concerns over how ads could impact user privacy and experience. Instead, Telegram relies mainly on optional donations from its large existing user base to fund ongoing development and server costs. Telegram is able to offer these services without ads currently because founder Pavel Durov has pledged around $200 million from his personal fortune to support the app.
Telegram launched “Telegram Premium” in June 2022, introducing a paid subscription for the first time. Premium subscribers can receive a larger maximum number of contacts, folders, pins, and more. Premium also increases file upload limits and introduces exclusive animated emoji and reactions. Telegram Premium costs $4.99 per month but the company claims this optional subscription will be enough for Telegram to fully support itself without any future need for alternative monetization methods like ads.
In contrast, WhatsApp employs no monetization at all presently since it is owned by Facebook parent company Meta. WhatsApp did have plans to introduce optional business-focused paid services and in-app purchases, but that was delayed indefinitely after a user backlash over privacy concerns. WhatsApp has over 2 billion users but generates no direct revenue, relying solely on Meta’s other business revenues to fund development.
Meta’s other messaging platforms like Facebook Messenger and Instagram Direct have prominent in-app advertising including product and service recommendations. Businesses can promote their Messenger profiles, chats, stories, and online stores through ads. Messenger also offers subscription plans for businesses’ customer service capabilities through tools like Messenger API bots.
WeChat in China has become a powerful super app with a wide array of services completely integrated within the messaging experience. WeChat monetizes through digital payments services, gaming integrations, and a thriving mini program ecosystem similar to mobile apps where businesses can promote and sell digital goods/services. WeChat takes a cut of revenues from these integrations that has made it immensely profitable for parent company Tencent without any ads within the core chat functions.
Japanese messaging platform LINE also emphasizes services beyond communication including games, commerce, and digital content integrated directly into the app experience. LINE generates major revenues through its games including Puzzle & Dragons, sales of LINE-based stickers and digital goods, advertising, and a payments platform called LINE Pay similar to WeChat Pay. LINE has also explored optional premium LINE TV and phone plan subscriptions.
Korean messaging giant Kakao follows a South Korean model emphasizing built-in mini games accessible via chat profiles which generate abundant in-game purchases. KakaoTalk also earns income from a music streaming service, loyalty points program, commerce platform, and its digital wallet service Kakao Pay.
In summary – while most messaging platforms depend heavily on in-app ads, e-commerce integrations or paid subscriptions – Telegram has resisted this approach so far through Pavel Durov’s initial funding and the recent premium subscription option. WeChat, LINE, Kakao and Messenger align more with the super app model fully integrating overlays services alongside communication. But Telegram seeks to keep a tighter separation of chat functionality from additional monetized overlays and services. Only time will tell if Telegram Premium generates enough ongoing revenue or if alternative strategies may eventually be explored.