Instagram's Business Model

1674 Words 7 Pages
Created in October 2010 by Kevin Systrom and Mike Kreiger, Instagram is an online mobile photo sharing and social networking application service that enables its users to take pictures and videos, and share them. The distinctive feature about Instagram is it confines digital filters that users can apply to their pictures before sharing them on the platform. Like tweets, Instagram pictures are indexed by both @persons and #subject matter. By April 2012, Instagram has accumulated 100 million users, surfacing any social media platform.
I downloaded Instagram two years ago, when I purchased the iPhone 4s. Instagram is a free app available in the Apple App store and Android Play store for Samsung, HTC, etc.
I access my Instagram app minimum three
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Beginning this year, Facebook - which acquired Instagram in 2012 for 1 billion dollars- decided the zero profit model should start bringing in revenue, especially that it has developed one of the biggest user databases in social media. Jason Miles, author of “Instagram Power” explains how Instagram gained this much power in just four years. He considered the photo sharing and networking app as "social media lite" meaning that its culture is not very conversational and no one expects you to do much talking or text posting. The social network is technically built on a photo sharing at real time concept; this model sparks distinct triggers in its users, which eventually empowered the Instagram culture. These triggers are emotions stirred by looking at a photo, such as love, desire, and urgency. Miles notes that these triggers are not to manipulate the user’s emotions, but to spark curiosity and encourage sharing. This tactic in shaping people’s emotional response is how Instagram became an influential platform. People spend twenty percent of their time on Facebook accessing pictures, where 250 million pictures are shared everyday! Research shows that if someone opens Instagram, they’re likely to open it eight more times that same day. People tend to believe what they see, and what you see is the soul of Instagram. Systrom – …show more content…
Facebook, Instagram’s management team, employees, and shareholders constitute the inner community; the most influential stakeholders would be the ones in the red circles. Since Instagram is now a part of Facebook’s company, Facebook’s board members make the influential decisions that would directly affect Instagram, in addition to being held accountable to the shareholders. The shareholders play a big role in financing the operations needed for the application, technologies, operations, capital etc. Instagram’s management team also has a lot of weigh since they are held accountable infront of the board members, and its their responsibility to address any problem that could obstruct Instagram’s performance and resolve it. The largest in size stakeholder who also weighs a lot of importance is Instagram’s users. Because of its active hundred million-user base, Instagram carried the price of 1 billion dollars by 2012, only two years after its creation, and now is a prime platform for advertisers. The second group of stakeholders would be the ones in the green circles, they may not directly have an impact on Instagram yet remain important to maintain Instagram’s image and elite rank in the social media channels. Starting with Apple and Android ‘s management teams, there is a dual relationship of power and money between them and Instagram; the application is available in the Apple

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