So…Facebook to Buy Instagram for $1Billion – Is This Good?
The twitterverse and other social networks are a buzz with the latest news. I came across the headline via New York Times feed. (Ref post – http://ow.ly/aabPD)
I have been using Instagram for a long time and consider the originally iPhone-only app as one of my favorites. I think this is a good move for Facebook, good move for Instagram makers, maybe not a great move for the app itself or app-fans.
Good for Facebook
Earlier this month Instagram released the android version of the app thus expanding it’s market-share, to an exploding meteoric pace. Inclusively, @Forbes tweeted: Instagram…Adds a Million Android Users in 12 Hours & Raising $50 Million http://t.co/Al1su2N0. Million of non-Facebook users are already on the this sticky-friendly app. The competition for social-photo-share was getting fierce. Was teh competition worth $1B rhough? Yes, because of revenue potential as well. The monetization potential is strong considering the large consumer base. In addition, you would have to assume it will be very easy to market and entice non-Facebook users to become Facebook consumers and the back and forth integration between the platforms will continue to grow the already large online photo-sharing behavior. Today Instagram sharing is one-sided from Instagram onto Facebook but I can easily envision Facebook photos shared on the Instagram user feed.
Good for Instagram Makers
Founders Kevin Systrom and Mike Krieger had previously been approached for purchase but the price and timing was obviously not right. All that has changed today – could you turn away from $1B? Aside from coveted purchase price of one BILLION dollars, this gives the makers the ability to create other products. Early news is said that Instagram will remain a separate company, I’m not sure if the makers will remain as advisory consultants… I doubt it. High expectations are set for these two, based on the success of Instagram. If they follow their own recipe of usability and functionality I hope to not be disappointed.
Not so Good for Instagram App & Fans?
Perhaps no immediate changes for the app itself who knows how long that will last. Zuckerberg posted in his own Facebook timeline to plan to keep things the same…
We think the fact that Instagram is connected to other services beyond Facebook is an important part of the experience. We plan on keeping features like the ability to post to other social networks, the ability to not share your Instagrams on Facebook if you want, and the ability to have followers and follow people separately from your friends on Facebook.
Change is inevitable even if the purchase didn’t take place. The difference now I suspect is with a Facebook focus and quick revenue push. Expect to see changes that will bring them revenue to offset that cost. Probably ads in between pictures, must view ad-clips for multiple picture post, app-download fee for advance features perhaps use of Facebook bucks/credits within the app. In my opinion, one thing for sure if they lose the small, simple-quick easy to use app experience that made Instagram the photo-share app of choice they will lose users. With news of the buyout many disgruntled users threatened to delete their Instagram accounts. I also wonder if the privacy settings and account management woes that Facebook constantly battles will migrate over. This news should NOT make an immediate difference to the majority of current users. The concern over privacy should be void by the mere fact on posting things online. That should be another discussion we should have in another post. I’m not canceling my Instagram account anytime soon, which by the way feel free to follow/look up exceliweb.
Let me know your thoughts as these are just my two cents.




