Snap's Redesign Is Here: Things Will Get Worse Before They Get Better
During Snap's (NYSE: SNAP) third-quarter earnings call, CEO Evan Spiegel announced the company is redesigning the Snapchat app. "There is a strong likelihood that the redesign of our application will be disruptive to our business in the short term," he warned investors. "We're willing to take that risk for what we believe are substantial long-term benefits to our business."
Snap gave users and investors the first look at the redesigned app last week, and it certainly looks like a major risk for the company. "The new Snapchat separates the social from the media," the company wrote in a blog post announcing the redesign. That's to say social interactions with friends are now separate from Snapchat's Discover content from media companies.
Separating the two functions may make the app more intuitive and help bring on more users, but it might also make it a lot harder for media companies to monetize their content on the app.
Source: Fool.com
