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signal’s brian acton talks about exploding growth, monetization and whatsapp data-sharing outrage

AVATAR Manish Singh
Manish Singh
Reporter, India, TechCrunch
January 13, 2021
signal’s brian acton talks about exploding growth, monetization and whatsapp data-sharing outrage

Brian Acton is once again encountering Facebook in the business landscape. Throughout more than ten years of developing and managing WhatsApp, the company’s co-founder initially found himself in competition with, and later sold his instant messaging application to, the prominent social media company. He subsequently separated from the organization that generated his substantial wealth, following disagreements concerning messaging and user privacy.

Acton now states that the continuing public concern regarding Facebook’s actions concerning the messaging service he helped create is prompting individuals to explore his current endeavor – Signal. Serving as the executive chairman of the holding company for the privacy-focused messaging app, Acton informed TechCrunch in an interview that Signal’s user base has “grown rapidly” in recent weeks.

“Even minor occurrences can lead to significant results,” Acton explained during a video conference. “We are also pleased that discussions surrounding online privacy and digital security are increasing, and people are selecting Signal as a solution to these concerns.”

“This presents a valuable opportunity for Signal to demonstrate its capabilities and offer individuals a different option. It experienced gradual growth for three years, followed by a substantial surge. The momentum is now building,” he added.

The event Acton references is the recent modification to WhatsApp’s data-sharing policy, impacting an app with over 2 billion users globally.

WhatsApp has recently prompted users, through an in-app notification, to accept updated terms and conditions that authorize the app to share their personal data with Facebook. The notification indicated that users must agree to these terms by February 8th to continue utilizing the application.

Acton explained that WhatsApp is facing challenges in integrating monetization features while simultaneously safeguarding user privacy. He also noted that its recent “complex policy” has compelled both WhatsApp and news outlets to seek clarification, resulting in widespread “confusion.”

Acton refrained from revealing the precise number of users Signal has gained in recent weeks, but he stated that the app currently holds the top position on the App Store in 40 countries and on the Google Play Store in 18 countries. (Signal is not the sole application users have been investigating as a potential new platform. Telegram announced on Tuesday that over 25 million users had joined its platform within the past 72 hours, bringing its total to more than 525 million monthly active users.)

According to data from mobile analytics firm App Annie, shared with TechCrunch by an industry source, Signal had approximately 20 million monthly active users worldwide at the close of December 2020. Sensor Tower reported that the app was downloaded over 7.5 million times between January 6th and January 10th.

Since its launch in 2018, Signal has consistently maintained its commitment to not selling user data or displaying advertisements. In 2018, Acton contributed $50 million to the Signal Foundation, an investment he stated was instrumental in initiating the project. However, how does the messaging app intend to remain financially sustainable in the future?

Acton explained that Signal currently relies on donations to fund its operations – and a larger user base translates to a greater potential donor pool. “If Signal reaches a billion users, that represents a billion potential donors. Our goal is to inspire such enthusiasm for Signal that individuals will willingly contribute a dollar or 50 rupees. We believe earning that donation is key, and the best way to do so is by developing an innovative and user-friendly product. That, in our view, fosters a stronger relationship,” he said.

Acton indicated that this approach has proven effective for the business, which operates with a small team of fewer than 50 employees. Combined with its careful spending and the foundation’s resources, Signal maintains a healthy financial reserve.

The Signal Foundation has also previously stated that its messenger is just the first product, and, similar to Mozilla and the Wikimedia Foundation, it plans to expand into additional areas. Acton mentioned that the team will evaluate whether to develop email and storage solutions in the coming years, but their current focus remains on enhancing the messaging app.

While Acton has publicly encouraged users to move away from Facebook, he did not suggest that people should discontinue using WhatsApp during our conversation. Instead, Acton proposed that individuals might utilize Signal for conversations with family and close friends, while continuing to use WhatsApp for other communications. “I have no intention of replicating all the features of WhatsApp. My aim is to provide people with a choice,” he stated. “Otherwise, you become reliant on a single option with no alternatives. It doesn’t necessarily have to be a situation where one entity dominates.”

WhatsApp frequently faces criticism for its perceived lack of effort in curbing the dissemination of misinformation on its platform, which has, in some instances, led to tragic consequences. I inquired about how Signal, which also employs end-to-end encryption to protect user conversations, would address a similar situation if its app were to be used for the same purpose. Acton acknowledged that this is a complex challenge, and while technology and platforms bear some responsibility, their capabilities are limited, particularly when the content of conversations cannot be monitored.

“It is essential to educate children about responsible digital citizenship. Encourage them not to accept information at face value, but to understand its source and identify trustworthy sources. As a society, we must teach all members how these systems work,” he said, drawing a parallel to the early days of the internet when email scams were prevalent and, over time, people learned to recognize them.

#Signal#Brian Acton#WhatsApp#messaging app#privacy#data sharing

Manish Singh

Manish Singh currently serves as a senior journalist for TechCrunch, with a focus on the dynamic startup ecosystem within India and the venture capital funding that fuels it. His reporting also extends to the strategies of international technology companies as they operate in the Indian market. Prior to becoming a part of the TechCrunch team in 2019, Singh contributed articles to a wide range of media outlets, notably including CNBC and VentureBeat, totaling approximately twelve publications. He earned a degree in Computer Science and Engineering in 2015. He can be contacted via email at manish(at)techcrunch(dot)com.
Manish Singh