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[RoKKeR]

How terribly shocking. /s

 

[Crimson_Gold]

So the only people making money on Snapchat are the "models" that have subscriptions?

Yes

 

[Zeyphersan]

Wow, I hope they find it

 

[toxicgonzo]

Oh Snap!

 

[Glix]

I know a LOT of West Indians and this is what they ALL use to communicate with ppl back home or in fla No more phone cards

 

[ElMexiMerican]

While this is a little outdated since it's not 2016 anymore, I found this great article from TechCrunch that goes into detail about how Snapchat makes money, since it seems like a lot of people don't really know how they monetize, https://techcrunch.com/2016/09/06/report-snapchat-ad-revenues-to-reach-almost-1-billion-in-2017/

Also another interesting thing to note from the article:

The $1 billion estimate, meanwhile, lines up with details found in Snapchat’s leaked presentation deck, which predicted revenues between $500 million and as much as $1 billion for 2017.

 

[bastardly]

should've just took the 3billion, oh well.

 

[Z3K]

Doesn't really help that Facebook has shoehorned snapchat like features into every single fucking app they make.

Even WhatsApp now has "stories"

 

[mackaveli]

should've just took the 3billion, oh well.

Why? Their market cap is still at 21 billion even with the 25% decline.

 

[ibrahima]

Am I doing it right?

This is poetic.

 

[DiscoJer]

I'm 45 so I have no idea what snapchat actually is, though I've heard the name. Some sort of video chat, I would guess.

But how can an internet company lose that much money? What are they spending it on? Surely bandwidth isn't that much.

 

[SRG01]

I'm curious how they'll move forward with monetization, as it seems to be the #1 problem with internet companies in the 21st century...

 

[droggg]

I'm 45 so I have no idea what snapchat actually is, though I've heard the name. Some sort of video chat, I would guess.

But how can an internet company lose that much money? What are they spending it on? Surely bandwidth isn't that much.

Probably user drop off, Instagram and Facebook have implemented a video/picture sharing feature pretty much identical to Snapchat into their apps.

 

[wilsonda]

Should have dumped the stock earlier on... damn I am taking a bath today

 

[massoluk]

It amazes me actually that even a company like this could go public. Especially after how bad Twitter was going.

 

[Dr. Feel Good]

I don't think Snap is going anywhere. Instagram has definitely taken a share of users but it's still a fundamentally different type of view people try and express themselves as. Instagram is for public consumption, Snapchat is for private, close friends. Society is moving towards more inclusive broadcasting of their lives. Especially young kids.

 

[Diprosalic]

Probably showing my age but I don't know anyone who uses it. How are they trying to monetize?

they probably don't.

1. be the hot new thing
2. attract talented people
3. force talented people make something that actually makes money
4. ???
5. Profit

 

[Acorn]

I don't use it often, how do they make money off this? Ads like Twitter, fb etc?

Sell user data?

Edit http://www.visualcapitalist.com/snapchat-monetization-problem/

 

[SciencePilot]

I'm 45 so I have no idea what snapchat actually is, though I've heard the name. Some sort of video chat, I would guess.

But how can an internet company lose that much money? What are they spending it on? Surely bandwidth isn't that much.

They're paying engineers. Software engineers are expensive.

 

[Maintenance]

Not surprised, Zuck is trying his best to kill it. Ruined Messenger, Whatsapp by adding useless snapchat features. I'll understand Instagram having it, they already used the platform to kill Vine so eh, but the rest? gtfo.

 

[Hidden One]

Not surprised with how Instagram added stories and seems to still be popular with younger folks and of course Facebook has implemented stories as well.

 

[MaximL]

It amazes me actually that even a company like this can go public.

It makes money. It's nothing compared to the companies in the dot-com bubble going public without even a product.

If I remember correctly there was a company that went public for a fuckton in 1998/1999 that showcased live streaming. Turns out it was pre-recorded. Had 16 million pound launch party and everything. Hilarious

 

[Auctopus]

How much did they turn down from Facebook again?

They turned down Facebook for $3 Billion and now they're worth over $23 Billion.

 

[faridmon]

The usability of the app have gone drastically down since they added the subscription model. It used to be easy to just send anything, nowadays you have to go through more clicks to do that.

 

[styl3s]

I'm 45 so I have no idea what snapchat actually is, though I've heard the name. Some sort of video chat, I would guess.

But how can an internet company lose that much money? What are they spending it on? Surely bandwidth isn't that much.

32 and the only reason i know about it is because my nieces tried to get me into it and when they finally convinced me they stopped using it. They (and their friends) are all about twitter/instagram which i understand the appeal of those for teenagers and adults but never saw the appeal in snapchat.

Then again i still actively use AIM so what the fuck do i know.

 

[rokkerkory]

Gonna buy shud be a good value investment

 

[nhlducks35]

I'm 45 so I have no idea what snapchat actually is, though I've heard the name. Some sort of video chat, I would guess.

But how can an internet company lose that much money? What are they spending it on? Surely bandwidth isn't that much.

Stock based compensation expenses related to the IPO

 

[Entropia]

How do you lose that much money with something as basic of a concept as Snapchat?

Were the commercials with the ghosts and celebrities that expensive?

There's no money coming in. Which isn't surprising. It's not like there's a 'Premium' Snapchat or something. It's mostly just ad revenue if anything.

 

[Cimarron]

This is a shame I really really like the privacy features of Snapchat. I hate how open Instagram is. Every time you like a picture or make a comment it is automatically shared with all of your friends. Instagram is a stalkers paradise.

 

[Drazgul]

This is a shame I really really like the privacy features of Snapchat. I hate how open Instagram is. Every time you like a picture or make a comment it is automatically shared with all of your friends. Instagram is a stalkers paradise.

It has no options for that? Ridiculous.

 

[Cimarron]

It has no options for that? Ridiculous.

Nope. NONE!

 

[radios shipping overview]

Am I doing it right?

amazing

 

[AstroNut325]

Instagram and Snapchat are still fundamentally different in use.

Snapchat is for real life, Instagram is for fake life.

Can you or someone else explain this? What does this mean?

 

[Doran902]

Can you or someone else explain this? What does this mean?

Maybe because snapchat gives you a short video of what is actually happening / someones updates and instagram is usually someone taking 50 photos, choosing the best one adding a filter / crop / billions of hastags etc.

Just a best guess.

 

[Greatest Ever]

Sucks, but their app is constantly trash on Android for me. Not only the pictures, but the performance too.

 

[loaf of bread]

I don't use Snapchat, I just use Instagram.

I was under the impression that Snapchat was more of a sort of IM sort of app along the lines of WhatsApp, Line, etc but for sharing short vids/pics with just your friends whereas Insta is more of a full-fledged social media for sharing with everyone? No?

 

[Zekes!]

The best thing about Snapchat is the Snapstories, which I was glad Instagram stole. I know a bunch of my younger family use Snapchat almost exclusively though.

 

[hodayathink]

So the only people making money on Snapchat are the "models" that have subscriptions?

Yes

And they're going to lose a decent amount of those as the sex workers in that group are finding other apps that they don't have to worry about being kicked off of.

 

[Arc]

Can you or someone else explain this? What does this mean?

People use instagram to show themselves in a specific light. They take multiple pictures, use filters, etc. It's all very calculated.

No one instagrams them catching their friend picking their nose. The quick looks into someone's every day life is what makes snapchat work.

 

[pxleyes]

They turned down Facebook for $3 Billion and now they're worth over $23 Billion.

Zero chance that valuation is or ever was accurate. What bubble, they say.

 

[RoyalLaFlame]

Am I doing it right?

Holy shit ahahahah


Instagram stories being a great success has some influence on this, no?

 

[Usobuko]

The CEO paid himself very well for going public.

Can't remember the amount but it's in hundred of millions approximately.

 

[googleplex]

Messenger apps are starting to have snapchat style functions built in, so they're quickly becoming redundant.

This. The Facebook one does everything Snapshot does and more.

 

[Jason's Ultimatum]

I'd wait until it drops further. Then again these tech stocks are iffy. Look at Twitter and GoPro.

 

[Kyzer]

Surely those $200 snapchat-compatible only glasses will save them.

Lol

 

[Ominym]

Surely those $200 snapchat-compatible only glasses will save them.

To be fair, they are $130, bit of a far cry from $200.

That said I own a pair and they are super dumb. Kinda fun though if you've got some cash burning a hole in your pocket.

 

[airborn]

Probably showing my age but I don't know anyone who uses it. How are they trying to monetize?

- Sponsored Lenses (branded video filters and effects that go over selfies)
- Sponsored Geofilters (custom stickers that are unlocked only when you're in a specific location)
- Snap Ads (interactive video ads that can be found inside the app)
- Snap to Unlock (custom 'qr codes' that can link to branded lenses, geofilters or video ads)
- Spectacles

Most of their advertising efforts are currently targeted at big brands. Only geofilters are available to all.

 

[Ominym]

- Sponsored Lenses (branded video filters and effects that go over selfies)
- Sponsored Geofilters (custom stickers that are unlocked only when you're in a specific location)
- Snap Ads (interactive video ads that can be found inside the app)
- Snap to Unlock (custom 'qr codes' that can link to branded lenses, geofilters or video ads)
- Spectacles

Most of their advertising efforts are currently targeted at big brands. Only geofilters are available to all.

You can also skip ads, which is pretty nuts all things considered. A lot of the companies using Snapchat to make money seem to be trying to make content people want to watch rather than just displaying a generic ad.

 

[LNBL]

Instagram stories are getting more popular i think

 

[Zantetsuken]

I don't know, it just seemed like it was obvious this would happen.