1) Teenage users, their bread and butter, are leaking out to Instagram
2) Older users, their growth market, are being "stolen" by the various messaging apps that they're already on (plus Instagram)
So now they have to simultaneously fend off Instagram draining their primary userbase, while also competing with all the popular messenger apps cloning their main product feature.
The latter is going to be just as difficult as the former. Overseas, WhatsApp (Europe), and WeChat and Line (Asia) are going to seize whatever int'l growth they were hoping to grab. In the US, chances are that if Stories catches-on with the older crowd, it'll be through either Instagram or the various messenger apps they're already on.
During the IPO roadshow, SNAP was trying to position itself as a media/entertainment company, but media companies will follow the audience, and it's hard to see them sticking it out with SNAP if viewership numbers falter.
Hard to see how they claw their way out of this. The comparisons to FB are poor IMO because they at least strong MAU growth going for it and no real viable competitors with an alternative product. Even the comparisons to Twitter are flawed. The doubly whammy of decline growth + decline revenue per user is creating the perfect storm for SNAP.
1) Teenage users, their bread and butter, are leaking out to Instagram
2) Older users, their growth market, are being "stolen" by the various messaging apps that they're already on (plus Instagram)
So now they have to simultaneously fend off Instagram draining their primary userbase, while also competing with all the popular messenger apps cloning their main product feature.
The latter is going to be just as difficult as the former. Overseas, WhatsApp (Europe), and WeChat and Line (Asia) are going to seize whatever int'l growth they were hoping to grab. In the US, chances are that if Stories catches-on with the older crowd, it'll be through either Instagram or the various messenger apps they're already on.
During the IPO roadshow, SNAP was trying to position itself as a media/entertainment company, but media companies will follow the audience, and it's hard to see them sticking it out with SNAP if viewership numbers falter.
Hard to see how they claw their way out of this. The comparisons to FB are poor IMO because they at least strong MAU growth going for it and no real viable competitors with an alternative product. Even the comparisons to Twitter are flawed. The doubly whammy of decline growth + decline revenue per user is creating the perfect storm for SNAP.