Snapchat is one of the hottest products in the tech industry right now. After famously rejecting a 3 billion US dollar takeover bid from Facebook, the app has since grown from 11 million users to more than 27 million over the course of just a year. This explosive growth has been facilitated by the app’s popularity among teens, who value its so-called ephemeral messaging system, as it allows them to be more spontaneous in an online environment.
Despite the app’s high-profile investors and multi-billion dollar valuation, it is yet to actually generate any real revenues. Now however, if reporting by the Wall Street Journal is to be believed, this is all set to change. A new package of features will reportedly be released in November this year, called Snapchat Discovery which will finally bring the app a way to make money off its huge user base.
Snapchat Discovery will take the form of a ‘news feed’, similar to that which has been implemented by Facebook. Information will be posted to the feed, and be accessed via holding down a finger over the content. Then, in a similar to fashion to other messages on Snapchat the content will disappear after a set period of time or when the finger is lifted.
Snapchat is looking to form connections with news and other content providers.
In order to leverage this feature for profit, Snapchat is looking to form connections with news and other content providers. The company is hoping that if it creates an attractive enough environment, it will be able to charge these companies for access to, and a prime position on this content stream. In addition to this news and video content, it is also highly likely that the company will chose to feature more conventional advertisements in order to generate further revenues.
These moves follow the trends of other mobile message services which have sought to find creative ways to make money from their service. Facebook-owned WhatsApp charges $1 for access after the first year of use, while Asian competitors WeChat and KakaoTalk have generated profits through sale of in-app emoji packs known as ‘stickers’.
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