SNAP: The paths to mobile video success that Quibi missed

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.

Video Strategy:

  • 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.

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