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How Snap Is Increasing Its User Base


Jan. 26 2018, Updated 7:37 a.m. ET

Snap Inc. is opening Snapchat’s “walled garden”

Social media app Snapchat gained popularity as users liked the intimacy it offers. On January 23, Snap Inc. (SNAP) announced that users would be able to share some content with people who don’t use the app through Facebook (FB), Twitter (TWTR), and other platforms. The feature is available only in a few countries where the updated version of the app is available.

Snap (SNAP) stated that the intention to move beyond its “walled garden” was to spread awareness of the app. The new feature comes as the company tries to revive user growth, which has stalled in the last few quarters.

Snap faces fierce competition, especially from Facebook’s Instagram, which cloned Snapchat’s Stories feature.

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How the new feature could help Snapchat

This move could make the app’s Stories feature easier to embed on other platforms. However, this move goes against the app’s concept of ephemerality. Embedding was a contributing factor in making Alphabet’s (GOOG) YouTube the premier online video platform, which made sharing easy for users. Twitter and Facebook allowed posts on their sites to be embedded on other websites in 2011 and 2013, respectively.

Snap has made several changes in order to attract more users, and it’s currently redesigning the app. Snap stock has fallen 2.5% year-to-date.


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