While Quibi collapsed, its key mobile video competitor SNAP showed what could have been.
- Snap started as a user-generated mobile content and social media venture.
- The target: Gen Z and millennials.
- Camera technology is at the center of its value prop.
- Watch the SNAP promo.
- Snap expanded beyond user-generated content
- Its free Discover feature is for professional content.
- Discover connected with consumers via breaking news videos about Covid and the election.
3Q 2020 Growth
- Snap reported 18% year-over-year growth in daily active users to 249 million
- Revenue surged 52% to $679 million.
- Over 50 million users watch video each month.
- Time spent with its “Shows” feature jumped over 50% year-over-year
- Internationally, Snap said Discover viewership was up 50% in Q3 vs Q2
Takeaways: Snap vs Quibi
- Snap is growing into premium mobile video.
- Its strategy is to leverage its massive user base and roots in UGC.
- Quibi rolled out a paid, premium content model, without the launch pad of a user base.
- Any new paid video service has to compete with a torrent of free video content as well as established subscription services like Netflix and Disney+.
- Consumers only have so much appetite for SVOD services: that means a huge mountain to climb for new SVOD services.
- Read my analysis: Quibi: Collapse was in its DNA!