The Rise and Fall of Social Media Platforms
Since its inception, the internet has played a pivotal role in connecting people across the globe, including in remote locations.
While the foundational need for human connection hasn’t changed, platforms and technology continue to evolve, even today. Faster internet connections and mobile devices have made social networks a ubiquitous part of our lives, with the time spent on social media each day creeping ever upward.
The Scoreboard Today
Over the last 15 years, billions of people around the world have jumped onto the social media bandwagon – and platforms have battled for our attention spans by inventing (and sometimes flat-out stealing) features to keep people engaged.
Here’s a snapshot of where things stand today:
|Global Rank||Social Platform||Parent Company||Monthly Active Users|
|3||Qzone||🇨🇳 Tencent||528 million|
|4||🇨🇳 Sina Corp||528 million|
|5||TikTok||🇨🇳 ByteDance||524 million|
|8||Snapchat||🇺🇸 Snap Inc||302 million|
|9||🇺🇸 Microsoft||260 million|
Today’s entertaining video, from the Data is Beautiful YouTube channel, is a look back at the rise and fall of social media platforms – and possibly a glimpse at the future of social media as well.
Below we respond to some key questions and observations raised by this video overview.
Points of Interest
1. What is QZone?
Qzone is China’s largest social network. The platform originally evolved as a sort of blogging service that sprang from QQ, China’s seminal instant messaging service. While Qzone is still one of the world’s largest social media sites – it still attracts around half a billion users per month – WeChat is now the service of choice for almost everyone in China with a smartphone.
2. LinkedIn has been around for a long time.
It’s true. LinkedIn, which hasn’t left the top 10 list since 2003, is a textbook example of a slow and steady growth strategy paying off.
While some networks experience swings in their user base or show a boom and bust growth pattern, LinkedIn has grown every single year since it was launched. Surprisingly, that growth is still clocking in at impressive rates. In 2019, for example, LinkedIn reported a 24% increase in sessions on their platform.
3. Will Facebook ever lose its top spot?
Never say never, but not anytime soon. Since 2008, Facebook has been far and away the most popular social network on the planet. If you include Facebook’s bundled services, over 2 billion people use their network each day. The company has used acquisitions and aggressive feature implementation to keep the company at the forefront of the battle for attention. Facebook itself is under a lot of scrutiny due to growing privacy concerns, but Instagram and WhatsApp are more popular than ever.
4. What Happened to Snapchat?
In 2016, Snapchat had thoroughly conquered the Gen Z demographic and was on a trajectory to becoming one of the top social networks. Facebook, sensing their position being challenged by this upstart company, took the bold step of cloning Snapchat’s features and integrating them into Instagram (even lifting the name “stories” in the process). The move paid off for Facebook and the video above shows Instagram’s user base taking off in 2016, fueled by these new features.
Even though Facebook took some of the wind out of Snapchat’s sails, the company never stopped growing. Earlier this year, Snapchat announced modest growth as its base of daily active users rose to 190 million. For advertisers looking to reach the 18-35 age demographic, Snapchat could still be a compelling option.
5. Why is TikTok so popular now?
The simple answer is that short-form video is extremely popular right now, and TikTok has features that make sharing fun. The average user of TikTok (and its Chinese counterpart, DouYin) spends a staggering 52 minutes per day on the app.
Also propelling its growth is the company’s massive marketing budget. TikTok spent $1 billon last year on advertising in the U.S., and is currently burning through around $3 million per day to get people onto their platform. One looming question for the China-based company is not whether Facebook will co-opt their features, but when.
Which Streaming Service Has the Most Subscriptions?
From Netflix and Disney+ to Spotify and Apple Music, we rank the streaming services with the most monthly paid subscriptions.
Which Streaming Service Has The Most Subscriptions?
Many companies have launched a streaming service over the past few years, trying to capitalize on the digital media shift and launching the so-called “streaming wars.”
After Netflix grew from a small DVD-rental company to a household name, every media company from Disney to Apple saw recurring revenues ripe for the taking. Likewise, the audio industry has long-since accepted Spotify’s rise to prominence, as streaming has become the de facto method of consumption for many.
But it was actually the unexpected COVID-19 pandemic that solidified the foothold of digital streaming, with subscription services seeing massive growth over the last year. Although it was expected that many new services would flounder along the way, media subscription services saw wide scale growth and adoption almost across the board.
We’ve taken the video, audio, and news subscription services with 5+ million subscribers to see who came out on top—and who has grown the most quickly—over the past year. Data comes from the FIPP media association as well as individual company reports.
Streaming Service Giants: Netflix and Amazon
The top of the streaming giant pantheon highlights two staples of business: the first-mover advantage and the power of conglomeration.
With 200+ million global subscribers, Netflix has capitalized on its position as the first and primary name in digital video streaming. Though its consumer base in the Americas has begun to plateau, the company’s growth in reach (190+ countries) and content (70+ original movies slated for 2021) has put it more than 50 million subscribers ahead of its closest competition.
The story is the same in the audio market, where Spotify’s 144 million subscriber base is more than double that of Apple Music, the next closest competitor with 68 million subscribers.
Meanwhile, Amazon’s position as the second most popular video streaming service with 150 million subscribers might be surprising. However, Prime Video subscriptions are included with membership to Amazon Prime, which saw massive growth in usage during the pandemic.
|Service||Type||Subscribers (Q4 2020)|
|Amazon Prime Video||Video||150.0M|
|Amazon Prime Music||Audio||55.0M|
|Tencent Music (Group)||Audio||51.7M|
|New York Times||News||6.1M|
Another standout is the number of large streaming services based in Asia. China-based Tencent Video (also known as WeTV) and Baidu’s iQIYI streaming services both crossed 100 million paid subscribers, with Alibaba’s Youku not far behind with 90 million.
Disney Leads in Streaming Growth
But perhaps most notable of all is Disney’s rapid ascension to the upper echelons of streaming service giants.
Despite Disney+ launching in late 2019 with a somewhat lackluster content library (only one original series with one episode at launch), it has quickly rocketed both in terms of content and its subscriber base. With almost 95 million subscribers, it has amassed more subscribers in just over one year than Disney expected it could reach by 2024.
|Service||Type||Percentage Growth (2019)|
|Amazon Prime Video||Video||100.0%|
|Amazon Prime Music||Audio||71.9%|
|Tencent Music (Group)||Audio||66.8%|
|New York Times||News||60.5%|
The Disney+ wave also spurred growth in partner streaming services like Hotstar and ESPN+, while other services with smaller subscriber bases saw large growth rates thanks to the COVID-19 pandemic.
The lingering question is how the landscape will look when the pandemic starts to wind down, and when all the new players are accounted for. NBCUniversal’s Peacock, for example, has reached over 30 million subscribers as of January 2021, but the company hasn’t yet disclosed how many are paid subscribers.
Likewise, competitors are investing in content libraries to try and make up ground on Netflix and Disney. HBO Max is slated to start launching internationally in June 2021, and ViacomCBS rebranded and expanded CBS All Access into Paramount+.
And international growth is vital. Three of the top six video streaming services by subscribers are based in China, while Indian services Hotstar, ALTBalaji, and Eros Now all saw surges in subscriber bases, with more room left to grow.
How Do Esports Companies Compare with Sports Teams?
With some esports companies more valuable than traditional sports teams, we visualize esports vs sports in franchise value.
How Do Esports Companies Compare with Sports Teams?
Are esports on the same level as “real” sports? These comparisons range from tricky to subjective, but the monetary value of companies speak for themselves.
The world’s largest esports companies have definitely risen to the occasion. Valued at almost half-a-billion dollars, they’ve started to pass some sports franchises in value.
In the above graphic, we compare Forbes’ valuation of the top 10 esports companies in 2020 against median franchises in the “Big Four” major leagues (NFL, MLB, NBA, and NHL). Despite competitive gaming’s rapid growth, there’s still a long way left to go.
Esports Impress but NFL Teams Reign Supreme
The world’s top esports companies have grown quickly, and impressively.
As of 2018, there was only one esports company worth more than $300 million in valuation. By 2020, four of the top 10 were valued at more than $300 million.
|Esports Company||Games with Franchises||Value (2020)|
|TSM||League of Legends||$410M|
|Cloud9||League of Legends, Overwatch||$350M|
|Team Liquid||League of Legends||$310M|
|FaZe Clan||Call of Duty||$305M|
|100 Thieves||League of Legends, Call of Duty||$190M|
|Gen.G||League of Legends, Overwatch, NBA 2K||$185M|
|Enthusiast Gaming||Call of Duty, Overwatch||$180M|
|G2 Esports||League of Legends||$175M|
|NRG Esports||Call of Duty, Overwatch||$155M|
|T1||League of Legends||$150M|
When compared to traditional sports valuations, esports companies have already reached major league hockey status.
TSM, the world’s most valuable esports company in 2020, has a higher valuation than five NHL franchises. In fact, four esports companies were estimated to be more valuable than two NHL franchises, the Florida Panthers and Arizona Coyotes.
But other sports leagues are further away. While the median value of an NHL franchise in 2020 was $520 million, the MLB, NBA, and NFL all saw median values of over $1.6 billion.
|Esports vs. Sports Franchises||Lowest Valued Team||Highest Valued Team||Median|
|Esports (Top 10)||$150M||$410M||$188M|
Differences in Esports vs Sports Structures and Growth
Try as we might to make a clean apples-to-apples comparison between esports and traditional sports teams, there are significant differences in the business models to consider.
For starters, major esports companies own multiple franchises and non-franchise teams across many games. Cloud9 owns both the eponymous Cloud9 League of Legends franchise and the London Spitfire Overwatch franchise, for example, as well as non-franchise teams in Halo, Counter Strike: Global Offensive, Fortnite, and other games.
The revenue streams for esports companies are also extremely varied. Companies like TSM, 100 Thieves, FaZe Clan and Enthusiast Gaming made 50% or more of their revenue from outside of esports, having instead expanded into diverse companies with an equal focus on content creation and apps.
But it’s this greater ability to diversify, and the still-increasing size of esports fandom, that continues to grow esports valuations. In fact, TSM’s estimated 2020 revenue of $45 million is less than half of the Arizona Coyotes’ estimated revenue of $95 million, despite a $100+ million valuation difference in favor of TSM.
That’s why the continued maturation of esports is only going to make traditional sports comparisons easier, and closer. Instead of having to pit companies against franchises, direct league-to-league comparisons will be possible, and the differences will likely shrink from billions to millions.
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