Photo and video sharing application Snapchat has recorded a decline in the number of Users, tougher competition and smaller revenues, Independent.ie recently reported.
According to the report, the lesser number of users signing into the platform is seen as one of the major factors leading to Snapchat’s “gradual death.” Competitors of the photo and video sharing application such as Instagram are launching new features that attract more users. Facebook even reportedly adapted some of the yellow-colored platform’s famous features.
Lesser number of users
The article mentioned some figures to show how users of the yellow-colored App have been declining in the past months. In the second quarter of this year, Snapchat reportedly had 173 million users. However, another photo sharing platform Instagram has reportedly amassed more than 400 million users daily since February.
Snapchat gained popularity and value because of distinct features from its social media competitors. The application allows users to share images and videos into stories, and to save photos and clips shared by other users into their smartphones privately, Indpendent.ie added in the article.
More so, the company told Independent.ie that revenues are growing but for a tiny amount, while shares are into free fall.
The application recently stated that it lost around 35 cents per share or around $440 million. In 2016, the platform reported a loss of $116 million. Revenue might have increased from $72 million annually to $182 million, but the news report said it is below expectations.
Nevertheless, a chart shown by Business Insider revealed that the social media platform has increasing users, but the problem lies on the market.
While the software adds in users in North America, the market in Europe moves slower.
Around the rest of the world, the number of Snapchat users is still struggling, and the company blames it on some technical difficulties with the Android system, Business Insider added.
Facebook adapts its features
Facebook is still reportedly a tough competition for Snapchat.
The former has also adapted some of the major features of the latter, therefore earning more subscribers.
According to the article, Facebook has launched its marketplace feature, as well as notifications that inform users when someone is recording a video live or someone is posting something. Similarly, Snapchat also sends notifications through a feature known as Snapstreak. It reportedly encourages more connection between users.
