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Snapchat Could Run Out of Money Soon

WhatsApp's Snapchat "Stories" clone called "Status" has also hit 450 million daily users

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Snapchat made more interactive with 2 new features. Pixabay

With just $1.4 billion in its kitty at the end of third quarter results, the already struggling multimedia messaging platform Snapchat could even lose $1.5 billion in 2019, analysts have predicted.

Snapchat lost nearly 2 million daily active users in the third quarter this year and now has 186 million daily users.

“Snapchat could run out of money well before it’s projected to break even in 2020 or 2021,” TechCrunch reported on Sunday, quoting market research firm MoffetNathanson.

Snapchat’s daily active users number shrank 1.5 per cent to 188 million in the second quarter of 2018, down from 191 million in the first quarter this year.

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Snapchat on a smartphone device. IANS

It appears that Facebook-owned Instagram “Stories” has stalled Snapchat’s growth.

More than 400 million people use Instagram’s “Stories” feature daily to post photos and videos that disappear after 24 hours.

WhatsApp’s Snapchat “Stories” clone called “Status” has also hit 450 million daily users.

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“Snap did successfully reduce the rate of its free cash flow burn from a loss of $234 million in Q2 2018 to a loss of $159 million in Q3.

“But unless Snap bounces back, it will still need either an investor or acquirer to come to its aid by 2020,” the report added. (IANS)

Next Story

Instagram Now Copying TikTok, Snapchat to Promote its IGTV Feature

However, the photo-messaging app is still trying out ways to make the feature work as intended

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FILE - The Instagram icon is displayed on a mobile screen in Los Angeles. VOA

Desperate to promote its IGTV feature for posting longer videos, Facebook-owned photo-video sharing app Instagram is now copying TikTok and Snapchat with their use of Artificial Intelligence (AI) and interface design.

Depending on the tried and tested methods of the two apps, Instagram’s IGTV has ditched its category-based navigation system’s tabs like “For You”, “Following”, “Popular”, and “Continue Watching” for just one central feed of algorithmically suggested videos — much like TikTok, TechCrunch reported on Monday.

With its new design, IGTV has also moved on from its awkward horizontal scrolling design to a Snapchat Discover-like vertical “infinity grid” layout of recommended clips.

The new design showed up in last week’s announcements for Instagram Explore’s new Shopping and IGTV discovery experiences.

“The idea is this is more immersive and helps you to see the breadth of videos in IGTV rather than the horizontal scrolling interface that used to exist,” the report quoted Will Ruben, Instagram’s product lead on Explore as saying.

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TikTok has over 54 million monthly active users (MAUs) in India. Pixabay

Launched in 2018, the long-form video hub that lives inside both a homescreen button in Instagram as well as a standalone app, has failed to host lengthier must-see original vertical content.

TSensor Tower estimates that the IGTV app has just 4.2 million installs worldwide, with just 7,700 new ones per day – implying less than half a per cent of Instagram’s billion-plus users have downloaded it. IGTV does not even rank on the overall charts and hangs low at number 191 on the US – Photo and Video app charts, according to App Annie, the report added.

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However, the photo-messaging app is still trying out ways to make the feature work as intended.

Recently, Instagram started showing IGTV videos as part of the usual news feed, in order to boost user-engagement with the longer video clips. (IANS)