How Does Kahoot Make Money? The Kahoot Business Model In A Nutshell

• Kahoot is a Norwegian game-based learning platform founded in 2012 by Johan Brand, Jamie Brooker, and Morten Versvik. It is based on a university-developed interactive learning game called Lecture Quiz.
• Kahoot is free to use for players. Instead, the company makes money by selling access to various adaptations of the game fit for educational or enterprise contexts. Prices depend on the number of game participants and the level of functionality.
• Kahoot also makes money by licensing its gaming platform to third-party publishers that want a grow an engaged audience.

Kahoot origin story

Kahoot is a Norwegian game-based learning platform used in educational and other institutions.

The platform was founded in 2012 by Johan Brand, Jamie Brooker, and Morten Versvik in a joint project with the Norwegian University of Science and Technology (NTNU).

The idea for the platform came from NTNU Professor Alf Inge Wang, who in 2006 developed an interactive learning game called Lecture Quiz.

The game was based on research conducted by Versvik – a student of Wang’s at the time who happened to be completing his master’s thesis. 

Essentially, Wang and Versvik designed the game to be based on social learning.

Students gather around a common screen with their devices and connect to a game with a specific PIN.

They then use their devices to answer questions, with higher points awarded to students who give a correct answer quickly.

Wang and the team refined Lecture Quiz over the following six years before the co-founders were able to raise funding and rebrand the game as Kahoot.

The beta version was launched in Texas in March 2013, with the game spreading virally across North America and the world thereafter. 

Since it was launched, some 6 billion players have utilized the Kahoot platform.

In addition to schools and universities, the game is also used during corporate training sessions and sporting or cultural events.

The game can be found in over 200 countries and 87% of the world’s global top 500 universities.

Revenue for 2021 is forecast to be in the order of $90 to $100 million.

Kahoot revenue generation

Kahoot operates under the freemium business model. In most cases, the platform is free to use for the players themselves. 

However, the company does charge educational institutions and corporate clients for access to the game via multiple subscription plans. 

Kahoot! 360

Kahoot! 360 allows businesses to make training, presentations, events, and employee collaboration more fun and engaging.

There are several plans here:

1. Kahoot! 360 Standard ($17 per host per month or $204 billed annually) – great for engaging small audiences and evaluating knowledge retention. 
2. Kahoot! 360 Presenter ($39 per host per month or $468 billed annually) – best suited for delivering presentations during meetings with up to 50 participants per session.

In both the Standard and Presenter plans, businesses can receive a discount on the purchase if they require at least three separate licenses. This option is called Kahoot! 360 for Teams. 

1. Kahoot! 360 for Enterprises – a robust and security-conscious enterprise solution for employee engagement across meetings, presentations, and training sessions. Prices are available on request.
2. Kahoot! Event Bronze ($250) – for customers who want to hold a smaller, one-time event for up to 100 attendees. 
3. Kahoot! Event Silver ($500) – for customers who want to run an event for up to 2000 attendees. Extra features include word clouds, customizable branding, and the ability to track player progress and participation.
4. Kahoot! Event Gold ($750) – encompassing the functionality from the Silver plan plus professional onboarding support.

Kahoot! for schools

In an educational setting, Kahoot! empowers teachers to motivate their students, increase class participation, and assess learning.

Below is a look at the Kahoot! for schools plans:

1. Basic (free) – for up to 50 players per game.
2. Kahoot! Pro ($3 per teacher per month or $36 billed annually) – for up to 100 players per game. Additional features include polls, puzzles, multiple choice answers, advanced slide layouts, and a premium image library.
3. Kahoot! Premium ($6 per teacher per month or $72 billed annually) – a more customizable plan for up to 200 players per game.
4. Kahoot! Premium+ ($9 per teacher per month or $108 billed annually) – featuring unlimited teacher groups, lesson plans, apps, and as many as 2000 players per game. 
5. Kahoot! EDU ($12 per teacher per month or $144 billed annually) – this plan includes advanced tools for teachers and administrators, including school branding, brainstorming, and learning progress reports. There is also the ability to connect the entire school or district to Kahoot through a single site license. In this case, the institution must request a custom quote.

Licensing

The company also makes money by licensing its content to third parties as part of its Kahoot! Publisher program.

This allows publishers, brands, and other content creators to incorporate Kahoot games into their respective platforms and gamify their content.

The Kahoot! Publisher program has two options:

1. P1 ($500 per brand per month, billed annually) – for up to 150,000 players per year.
2. P2 ($1000 per brand per month, billed annually) – for clients wishing to engage and grow an audience of up to 1 million players per year. Importantly, the P2 plan allows Kahoot games to be added to a commercial offering.

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