TikTok might need to put its guard up. Reddit is aiming for user-created video market by acquiring Dubsmash. With Reddit’s announcement to acquire Dubsmash, it seems Reddit is still thirsty for more growth.
Wall Street Journal noted that Dubsmash is the first major acquisition by Reddit. Reddit’s characteristic is its open for public forum-like message boards. The company revealed that up to October, the total users for the platform has accumulated around 52 million daily active uses. What’s even more surprising, the number is actually 44% higher than last year’s record.
Why did Dubsmash choose to acquire Dubsmash?
Platforms that allow video contents have been receiving a lot of attention. Such application is not only a source for entertainment but is also becoming a marketing tool for enterprises. While Dubsmash didn’t mention an exact number of its total users, the company revealed that the “communities are driven by young, diverse creators.” Accordingly, Dubsmash is currently one out of TikTok’s biggest competitors.
Quoted from Wall Street Journal, Reddit’s Chief Executive and co-founder Steve Huffman said, “The cost of video keeps going down, the technology for recording and encoding it keeps getting better and better, and on the advertising side, video ads are more effective.” “They’re more visceral and engaging,” he continued.
Dubsmash started as a lip-sync video app. The application earned a lot of interest from the public with its fresh and entertaining contents. In 2017, Dubsmash started to change into a much more social platform. Similarly, Reddit has been adding more features for video contents. Some of the new features in its mobile application allow its users to upload and start a live stream.
Additionally, Dubsmash will remain as an independent app for iOS and Android. The acquisition will incorporate Dubsmash’s video-creation tools into Reddit’s mobile version application. Wall Street Journal noted that 12 employees of Dubsmash will join Reddit to help with the development.
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