Instagram’s strategy of stealing Snapchat features
Instagram co-founder Kevin Systrom sold Instagram to Facebook in 2015 for $1BN. A lot of other entrepreneurs think Mark Zuckerburg got Instagram for pennies on the dollar being that Instagram is worth over $30BN today. Users are Instagram crazy, the more Instagram followers and likes you have the better. Now boasts more than 800 million users. What more interesting is that approximately 500+ million of Instagram’s user base come from outside of the US. This is a great testament of how global the Facebook group is.
As a quick point of comparison, Snapchat currently boasts upwards of 160 million daily users and Mark Zuckerberg tried to offer to buy Snapchat for $3BN. After what they saw the easy buy of Instagram, Snapchat founders Evan Spiegel and Bobby Murphy turned down the offer. Today the Snapchat founders are worth more than $3BN that Zuckerburg offered, however the Snapchats decline in inevitable if they don’t innovate fast.
Snapchat’s decline has come at the hand of Instagram. After Zuckerburg was declined he decided to introduce Snapchat features on Instagram including 24hr stories, filters, live video and disappearing messages. The cloning was so blatant that it had many wondering how legal it actually is. It turns out that the Snapchat Stories feature has been patented in their own way. Now Instagram has given credit to Snapchat, however Instagram has differentiated themselves by expressing Instagram stories in a different way.
Can Snapchat bounce back?
Revenue rose 54% to hit $230.7 million through the Q1 2018, however the expectation was 63%. Now after an unpopular redesign Snapchat are having user retention and monetisation problems.
I think a big hit came when Kylie Jenner Tweeted:-
“Sooo does anyone else not open Snapchat anymore? Or is it just me… ugh this is so sad.”
Now people have said the Kylie’s tweet was not harmful however, she is very influential in the millennial space. Since that tweet earlier in February Snapchat has lost $1.3BN with a 6% stock drop that week.
Instagram’s strategy seem to be paying off, with Instagram’s user base soaring as Snapchat’s growth slows. Only time will tell to see if Snapchat can bounce back.