Instagram’s Instant Billionaires

by · April 15, 2012

It has been a big month for Instagram, the free photo sharing app which allows you to instantly upload photos across multiple platforms and be creative with it at the same time. Firstly on April 3 Instagram for Android was released, potentially boosting its already burgeoning customer base. Prior to that it could only be used on iOS, but had already established a loyal customer base of an estimated 27 million users since its inception. Later the same week the company was valued at an astonishing $500,000,000 and managed to therefore raise $50,000,000 in cash. But immediately following this news, Facebook announced it would be purchasing this giant of photo sharing for an eye watering $1 billion last week. Not bad for a baby that is only 18 months old.

Instagram was set up in San Francisco by Kevin Systrom and Mike Krieger in October 2010, by December of the same year it had a million users. They had clearly found a niche in the market for an application that lets you filter, crop and generally ‘artify’ your photo before distributing it across a range of social networks. They say they created Instagram to have one app solve a range of problems, such as why do mobile photos often look a bit mediocre and why does it take so long to up load to different networks and how to make photo sharing more fun? This innovative idea has netted the boys a big pay day, with unconfirmed reports that Systrom, as CEO, pocketed $400,000,000.

There is big money in these little apps. And that is not the only way to find yourself cash rich and business plan poor! Many cool and funny pictures have found themselves going viral after being uploaded to a social network causing instant fame to (sometimes) unsuspecting faces. Not to mention videos. Ever heard of Howard Davies-Carr? No, well how about ‘Charlie Bit My Finger’. Yes, you know this YouTube video, which has now reached an extraordinary 50,000,000 views and netted Davies-Carr, Charlie’s dad, half a million dollars! Cheeky little chappie Charlie took a chunk out of big bro’s little pinkie, the vid went viral and the rest is history.

Well, with the advent of apps like Instagram and built in cameras on both Android and iPhones, who knows maybe a multi-million dollar paycheck is just round a viral corner for you. All the hype and news around the acquisition of Instagram no doubt was instrumental in helping to launch it to the number one spot in Apple free app catalogue. However, not everyone is chuffed to bits at the news. There was a bit of an Insta-backlash! Users are concerned about Facebook’s fast and lose privacy policy, others say that Facebook will shut down or change favorite features and many are threatening to close their accounts.

CEO of Facebook, Mark Zuckerberg claims he will not change Instrgram nor merge it into Facebook but will nurture it separately. This is what Zuckerberg posted on his timeline regarding the purchase. “…we’re committed to building and growing Instagram independently. Millions of people around the world love the Instagram app and the brand associated with it, and our goal is to help spread this app and brand to even more people.”
Do you use Instagram for photo sharing? What do you think of the take over? Would you up-load pictures of children to social networks that can share them without restriction?

Post By Sarah Spendiff (28 Posts)

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