Kakao is pushing to integrate ChatGPT search functionality into the chat tab of KakaoTalk (hereafter referred to as KakaoTalk). This strategy, interpreted as an effort to reverse the declining user dwell time in partnership with OpenAI, aims to popularize artificial intelligence (AI) based on KakaoTalk. However, there are concerns within the industry that collaboration with OpenAI could spark the possibility of KakaoTalk becoming a paid service in the future.
According to industry sources on the 5th, Kakao is expected to integrate ChatGPT into the KakaoTalk chat tab starting in November. Previously, a separate ChatGPT application needed to be launched, but once integrated into the KakaoTalk chat tab, users will be able to easily search with ChatGPT while using KakaoTalk. Kakao is reported to unveil this new KakaoTalk update at the annual developer conference 'If Kakao' scheduled for the 23rd of this month.
The industry believes that the integration of ChatGPT into KakaoTalk will boost the declining user dwell time. According to the app analytics platform Mobile Index, the monthly active user count for KakaoTalk in the second quarter of this year is about 49.1 million, indicating that most citizens are using it, but the usage time continues to decrease. In August, the average usage time per person for KakaoTalk was 674 minutes, a decrease of approximately 16% compared to July 2021 (800 minutes). According to app data analytics firms WiseApp and Retail, the average usage time per person for ChatGPT in August was 115 minutes, which is 3.6 times higher than in October 2023 (31.6 minutes). Once ChatGPT becomes available on KakaoTalk, a surge in usage time and user numbers is expected. Last month, the monthly active user count of ChatGPT surpassed 20 million.
An industry insider noted, 'KakaoTalk is still loved as a national app, but since last year, it has lost its top spot in monthly active user count to YouTube. The average usage time per person has also already been surpassed by Instagram in 2023.' They added that 'it was necessary to find a breakthrough to reverse this situation.'
The issue lies in the possibility that KakaoTalk might become a paid service due to cooperation with OpenAI. Initially, while ChatGPT's search feature may be provided for free on KakaoTalk, there is a potential for it to transition to a paid model later on. An IT industry source stated, 'Though discussions about monetizing KakaoTalk have often arisen, the perception of KakaoTalk as a 'national app' has made it difficult to pursue this easily.' They further remarked that 'there is a possibility that the service might be revamped to allow free usage by watching ads, or by charging for an ad-free experience.' Currently, YouTube offers paid membership products that allow users to avoid advertisements, while Netflix provides discounts on usage fees under conditions of ad viewing.
Another industry insider remarked, 'Since the cooperation with OpenAI is not without cost, there will be expenses related to service fees and other costs. Even though ChatGPT currently offers a free version, there is a possibility that all services could eventually transition to a paid model.' He added, 'We cannot rule out the possibility that Kakao could proceed with the monetization of KakaoTalk.' There are also discussions that the recent consideration of introducing full-screen ads on the KakaoTalk launch screen reflects Kakao's need to create a new revenue model in order to cooperate with OpenAI.
Kim Gi-chan, an emeritus professor of business administration at Catholic University, stated, 'Founder Kim Beom-soo prioritized 'empathy' as a core value in the early stages of the company, and as a result, KakaoTalk was able to grow into a national app. This aligns with the management philosophy of Satya Nadella, the CEO of Microsoft (MS).' He expressed concern that 'monetization ultimately detracts from public empathy and diminishes the influence of platform companies, suggesting that the monetization of KakaoTalk would likely do more harm than good.'
A Kakao representative stated, 'We have not considered the monetization of KakaoTalk.'