WhatsApp

WHATSAPP MUSIC
VERSION 1.0
27-12-2019

Presented by
Bramhaiah B Reddy
WhatsApp music

Goal
Providing best quality music streaming to WhatsApp users and convert 10% of DAU to paid
customers in next 3 months for US region

About WhatsApp
WhatsApp Messenger is a cross-platform mobile messaging app which allows users to exchange
messages without having to pay for SMS. WhatsApp Messenger is available for iPhone,
Blackberry, Android, Windows Phone, Nokia, and Symbian platforms.

Since WhatsApp Messenger uses the same internet data plan that subscribers use for email and
web browsing, there is no cost to message and allows them to stay in touch with their friends.

In addition to basic messaging WhatsApp users can create groups, send each other unlimited
images, video, and audio media messages.

Problem
As of Today, WhatsApp has received $60.3 funding. As of now US has 68.1 Million users and is
expected to grow to 85.8 by 2023.

Hence, it’s important to bring monetization strategy to WhatsApp by engaging the current users
and generating the revenue to WhatsApp.

As of now in US , we have 30% (20million approx. considering 68million users) users between
age group 15-35 who are active on WhatsApp, these users’ needs to be engaged and converted
to paid users.

Considering the Demographics of US users on WhatsApp we have majority of people

between 18-35 years age group with most of the users between $80-100K income.

WhatsApp CONFIDENTIAL
Product Idea
Based on the demographics of current users, WhatsApp could introduce music
streaming services for the current users to engage them on WhatsApp and generate
revenue.

SWOT Analysis
Based on the demographics of current users, WhatsApp could introduce music
streaming services for the current users to engage them on WhatsApp and generate
revenue.

Weakness
Strengths 1)Internet
1)Free Dependent
2) Financial 2)Data Privacy
Leverage
3)Technology

Opportunities Threats
1)New Revenue 1)Low Entry barriers
Streams
2)Regulations
2)New Target
Markets in
Developing countries

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Music Streaming Market

The global music streaming service market size will grow by USD 10.01 billion during
2019-2023.

Source: https://www.technavio.com/

Report from Global Industry Analysts Suggest major growth in United States.

Key Highlights :

1) Music streaming market expected to grow at 16% CAGR.
2) Major growth region is North America
3) Key Differentiators would be Speed and cloud storage

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Target Users

The Target User persona for Music streaming for WhatsApp.

Source :: https://www.mattheweisenberg.com/spotify-case-study


Key Features :

1) Discover the latest music by Title, Artist and Album
2) Listen to music on the go and be able to use WhatsApp
3) Able to share the music with in WhatsApp contacts or groups

User Onboarding

1)Users need to Update the existing WhatsApp version to view the new music streaming
service.
2)On Updating to the new version users need to Tap on the music icon and accept the
T&C to start the trial service which would be active for 7 days .
3)Users need to get into paid plans to continue services else Trial would be expired.
4)Users with Expired Trials would be shown Paywall for Purchasing the plans.
5)Users need to provide Payment details upfront during trial enrolling and would be
able to stop their trial-paid conversion anytime before end of trial period.

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Mock-up for Music Streaming

Metrics for Music Streaming

The Goal for Music Streaming is to have 10% of DAUs in US to convert into paid users by
end of 3 months.

Target : 2 million paid users in 3 months (68~million Active users)
Monthly Target(3 months)
Trial Enrolments – 10lakhs +
Paid conversions – 6 lakhs +

Revenue Oriented Metrics :

Acquisition :

Cost per acquisition – Marketing cost on Facebook and other Social Media sites.

Visit to Lead % – People Tapping on the Music Icon on WhatsApp from the Total DAUs
on WhatsApp.

Visit to Trial Subscribers – People enrolled into Trial plan Vs users of WhatsApp.

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North-Star Metric :
Trial to Paid Subscribers(Activations) – People converting to Paid subscriptions from
trial.

Engagement
Lifetime Value of a Subscriber – Total revenue for a 3 year subscribing user.

Revenue
Monthly recurring revenue – Revenue from Active renewing users on each month.

Retention:
Churn rate : Users dropping out from trial plans

Non-Revenue Metrics :

Engagement ( To Identify the Gaps from Trial to Paid Conversions)

DAUs – Daily active users on music streaming service

MAUs – Monthly active users on music streaming service

Average user session – Time being spent on music service without listening to music

Bounce rate – Users dropping off from the music service

Session Frequency – Returning users in a day

Average time a single user listening to music – To understand the usability of the service

Average search hit by a user - To understand the ease of discovering the music

Average number of times user shares the music – To know the credibility of the content

Average Idle time of User (Not listening but browsing) – Listen Time/ Session Time - To
know the discoverability and content worthiness

Listen Time – Total amount of minutes users spent on listening to music

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Product RoadMap

Key Highlights :

1) Launch Streaming services on 27th May with music discovery and share the
Option with in the groups and contacts.
2) Phase Two will have Option to Download ,Purchase Music ,share across social
media and Play local files through WhatsApp Player

MVP Features :
1) Discover the music – By Title and Artiste
2) Play with in the App and chat
3) Share the music with contacts and groups
4) Play Music without Visual and in the App -Ads
5) Create Playlists

Feature Prioritization
MVP :
MOSCOW Approach

Must Have :
Ability to Discover/search music by Title
Share the Music with Contacts


Should have :
Ability to view top 10 songs
Create Playlists

Could have :
Ability to Discover/search music by Title

Will not have:
Ability to download and play local files that do exist in other streaming apps

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Music Streaming Top Players and current Pricing

Below are the Top Players in Streaming music and some highlights:

à Average Price is between $3.99 to 20 with 30 days to 3 months trial period.
à Key differentiators are Library Size and Streaming quality

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Cost of Developing and managing a Streaming Service

Core Components of Streaming Service :

1) Storage – Amazon S3
2) Content Delivery Network
3) Platform Infrastructure
4) Video Player
5) Proxy Server
6) Audio Search Algorithm
7) Inter Connect With Other Platforms
8) Cost of Artists and Albums being streamed on the platform

Tech Stack for Streaming Service :

Approximate Cost of Developing the App on android and IOS :

Android – $ 25,000 ( 3 Engineers for 3 months )

IOS - $35,000 ( 3 Engineers for 3 months )

Maintenance cost per month - $ 2,000 ( EC2 ,S3, CDN,Database)

Total Cost Incurred - $ 62,000.

Maintenance cost per month - $ 15000 (Support and ongoing requests)

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Pricing for WhatsApp Streaming Service
Approach: WhatsApp needs to have persona-based Value pricing for below two reasons:

1) WhatsApp has majority users between 18-35 Age who are students and working
professionals
2) Cost based pricing will not provide sustainable growth in long run due to changing
prices of Infrastructure, Revenue regulations and cost of content.

Pricing Strategy : Premium pricing strategy to differentiate the WhatsApp music from
competitors by delivering high quality streaming service allowing users to chat while
listening to music.

Pricing Option A :
Age – 18 -24
Professional – Students, Entry level professionals
Category – Entry – level listeners

Monthly Annual Features
Cost $4.99 $30 Discover Music
Speed 1411Kbps 1411Kbps Top Picks for You
Lossless High
Fidelity Sound
Quality
Play in Data Saver
Mode
Share with contacts

Pricing Option B :
Age – 25 -40
Professional – Working Professionals, audiophile
Category – Passionate Music lovers

Monthly Annual Features
Cost $25.99 $199 Discover Music
Speed 1411Kbps 1411Kbps Top Picks for You
Lossless High
Fidelity Sound
Quality
Ad-Free Listening
Unlimited Sharing
in the groups
Schedule the Song
to play

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Reasoning for the Pricing :
1) Age group between 18-25 and entry level listeners are price sensitive , hence
been placed at lower end.
2) The Entry group key value is high quality music and data saver option with
ability to share the music with contacts only.
3) Pricing Option B targets age group 25+ and hard core music lovers ,who spent
most time on music and having high quality with latest content is top priority .
4) Key Value for this group is Ad-Free listening and unlimited sharing with in
groups to promote their music taste.
5) One of the additional value is to schedule a song to play either early morning
when they are in bed or before they go to sleep.

Go-To Market Strategy

Strategic Objective :

To Provide the best Value to users through Whats App music and convert 10% DAU to PAID users

Target Market :
Initial target would be users between age group of 18-30 divided on two groups residing in Tier1 cities of US.

User Behavior :
1)Daily Active User (DAUs) – Users are active on the App on daily basis
2)Users with Long User Session – Users Spending more time on the App
3)Users with multiple sessions – Users who interact with app on multiple times in day
4)Users who interact less with App – Users Churning out quickly
5)Users with less session time – Users who browse specific topics and leave.

Value Proposition :
Listen to latest music while chatting in WhatsApp.

Product Strategy

In the first phase users should be able to discover and listen to their favorite music.
In the second phase users would be able to share and play local content

Beta/Market Testing :

Beta Release would be for first 1,00,000 Active users on IOS and Android for Tier1cities. Users have to upgrade
the App to view the Music icon and tap to launch.

Success Criteria :
1) 30 % of 100,000 users have tapped on Music icon.
2) 50% of users who tapped on Music icon browsed and played content.
3) 10% of users have multiple sessions for the day.
4) 5 % decrease in dropouts .

Marketing Strategy

1)Messaging on the social platform

2)Through Push Notifications

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