Snap Inc (NYSE:SNAP) Pushes Goals Further Into TV-Style Video Field

Snap Inc

Snap Inc (NYSE:SNAP) has come a long way into being what it is today despite the hard-hitting competition. The company’s Snapchat messaging app has been very popular but it is not done yet with its escalating push into TV-style video. Having carried out experiments with short-form video “shows,” Snap has all the stage set to roll out its new strategy.

Story continues below

The push into the new field results from the company’s success in its first such effort, which included a news show known as Good Luck America. The show got the interest of close to 5.2 million viewers per episode, which was no mean feat given that it was a trial.

Snap’s move into video is not surprising

Snap has been very successful in the recent past. The future also looks very bright having garnered a market value of $27 billion in March. However, the aspect of video shows may not be new in the market given that a majority of major technology and media companies are already engaging in it. It is worth nothing that, with the digital ad era, the video is one of the many areas that have shown incredible growth.

However, Snap says that even with the presence of the like of Facebook Inc (NASDAQ:FB) and Amazon.com, Inc. (NASDAQ:AMZN), it is still having a convincing motivation of being part of the video land-rush.

Will Snapchat users take the TV-style video format?

There has been mounting concerns from analysts and investors over the declining rate of user growth o the Snapchat app. This overlaps with Snap’s CEO Evan Spiegel’s boast of how many users spend more time on the app.

That said it is not clear whether or not Snapchat users will fall prey to the new TV-style video format. However, the company could employ the use of the same strategies it used when it was introducing Snapchat, which went viral very fast. In any case, it has been building a much broader media strategy that has kept intact a large number of follower counts and view counts.

In the meantime, Snap’s stock was trading at $20.53 witnessing an increase of $0.50 or 2.50%

An ad to help with our costs