Landscape of the Social-Audio Apps: Clubhouse and Its Many Competitors

Industry Background

The social media industry has grown rapidly in the 21st century. According to Pew Research, over 72% of Americans use some types of social media, compared to 5% in 2005 (Pew Research Center 2021). Although young adults are still the primary users, overtime, the demographic has become more representative of the actual population. In addition to the huge user base, social media users tend to be active users too. For example, 80% of Instagram users and 73% of Twitter users use the respective apps at least once a week. According to Vault, the industry revenue is expected to reach over $50 billion by 2021 (Vault 2021). Compared to traditional industries, the barriers to entry are relatively low for products like Clubhouse. This means there are likely to be similar players in this field.

Credit: https://www.joinclubhouse.com/

Competitive Analysis

  1. Facebook is the leading player in the social media market worldwide (Statista 2021). In May 2021, it accounted for more than 70% of the entire U.S. social media site visits. The most popular demographic background of Facebook users is aged 25–34. In April 2021, Facebook announced that it will first test “Live Audio Rooms” in Facebook Groups, meaning it will be available to its 1.8 billion users currently using Groups (Figji 2021). This is directly comparable to the current Clubhouse model, where users gather in a group based on topics. Facebook also plans to make this function available to “public figures”, citing well-known musicians and Olympians as examples. Additionally, Facebook plans to bring the audio experience to Messenger, its chat app. One thing Facebook made clear in its statement is how monetization would work for creators: listeners can buy and send creators “Stars”, and Facebook pays the creator $0.01 per star. Facebook also introduced “Audio Creator Fund” to support upcoming audio creators.
Credit: https://about.fb.com/news/2021/04/bringing-social-audio-experiences-to-facebook/
Credit: https://blog.twitter.com/en_us/topics/product/2021/spaces-is-here
Slack’s Huddle

Let’s take a closer look at Clubhouse

A SWOT analysis, as one does for MBA.

References

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