Discussion: Snapchat has become a huge player in the Social Media market. They have become such a big competitor that they are on track to sell for more then Instagram or YouTube. Over the Summer they obtained five key investors, bringing up their estimated value to $80 million. It is hard to comprehend how Snapchat can be worth $80 million, when its app isn’t even making money. However, the company’s CEO has hinted at gaining revenue through in-app purchases.
Source: CNN Technology
Date: October 25, 2013
Questions for discussion:
- When evaluating the net worth of a social media company, do you think it’s more important to look at their revenue or their number of users? (Snapchat currently has 100 million users)
- Would you be frustrated, as a Snapchat user, if they started including advertisements in their app? Why, or why not?
- As a Snapchat user, what is the most important attribute to you: the privacy of your picture, the fast delivery time of your picture, or that the picture isn’t taking up any memory on your mobile phone?