Dear Investors,
META launched a new text-based product this week, called Threads, which piggy-backs off of Instagram’s social graph and oddly looks walks and quacks a lot like Twitter.
Rumored to have only been built over the last 6-9 months with about 20 engineers inside META, Threads is quickly approaching 100M users, with experts pontificating that this could mean as much as $20B in additional valuation to the company.
In a recent development, Alex Spiro, a legal representative from Twitter, took action by sending a letter to Mark Zuckerberg, the CEO of Meta, on Wednesday. The letter accuses Meta of engaging in "systematic, willful, and unlawful misappropriation of Twitter's trade secrets and other intellectual property" in the creation of the Threads app.
According to Mr. Spiro, Meta allegedly hired numerous former Twitter employees who had access to Twitter's trade secrets and highly confidential information. It is claimed that this insider knowledge played a significant role in the development of what Mr. Spiro refers to as a "copycat" Threads app.
The letter from Twitter's legal team makes it clear that Twitter is fully committed to protecting its intellectual property rights and insists that Meta immediately cease the use of any Twitter trade secrets or highly confidential information. The letter also states that Twitter reserves all rights, including but not limited to seeking civil remedies and injunctive relief, without any further notice.
This legal move by Twitter highlights its determination to address the alleged infringement of its intellectual property and seek appropriate recourse in response to the situation.
But the real question is - Will Threads be a flash in the pan or a lasting platform? Should you be rushing to build you following there?
Here are some main differentiators:
- Threads is absolutely free to download and use, without any sneaky features hidden behind a paywall. As of now, Threads doesn't bombard you with advertisements, but it's possible that could change in the future. We all know how Instagram has become quite heavy on ads and shopping, right?
- While browsing through your Threads feed, you might come across some account handles adorned with blue checkmarks. These checkmarks signify that the user is verified, and this verification carries over from Instagram. So, if you're lucky enough to be verified on Instagram, that status will automatically extend to your presence on Threads as well.
- The primary purpose of both Twitter and Threads is essentially the same: sharing short messages that other users can view and engage with. Whether it's witty jokes, personal updates, gripes, or even song lyrics, you have the freedom to express whatever is on your mind and connect with those who follow you. The key distinction lies in the character limits: Threads allows up to 500 characters per message, while Twitter restricts you to a concise 280 characters.
- In terms of content, both platforms enable you to share website links, videos, and images. GIFs can be posted on both services, although on Threads, you'll need to save the GIF to your camera roll before sharing it. Notably, Threads grants you more flexibility when it comes to multimedia, as you can share up to 10 items in a single post. This stands in contrast to Twitter's limit of four items per tweet, which aligns with the limit for carousel posts in the Instagram apps.
- Engagement options on Twitter and Threads are quite similar, encompassing features such as liking, commenting, reposting, quoting, and sharing. These functionalities empower you to interact and connect with others on both platforms seamlessly.
- However, the approach to content discovery diverges between Threads and Twitter. On Twitter, you have the ability to finely curate your post feed, tailoring it to your preferences. You can opt for a "For you" feed that blends suggested posts with content from accounts you follow or stick to a "Following" feed that exclusively showcases posts from accounts you've chosen to follow.
- In terms of search capabilities, Twitter allows you to explore recent and relevant publicly-available posts by searching for specific words or phrases. On the other hand, Threads limits its search functionality to finding accounts. Consequently, Threads may not be the go-to platform for seeking out news or trending topics, at least for the time being.
- One noticeable distinction in messaging features between Threads and Twitter is that Twitter incorporates an in-app messaging function, whereas Threads does not offer such functionality at this time.
If I had to guess, Threads will not be able to create a lasting and engaging community. Habits are tough to break and social media platforms need to offer something materially different to create new engagement, similar to how TikTok created a new and innovative video platform. The benefit of jumping to a new platform remains the first mover advantage, which is why creators are moving their content - for fear of missing out. You can still find me on Twitter, as I remain a loyalists to what has worked for years.
About the Author: Tatiana Koffman
Hi there and thanks for reading! If you stumble upon my newsletter, you will notice that I write about money, economics, and technology. I hold a JD/MBA and spent my career in Capital Markets working across Mergers & Acquisitions, Derivatives, Venture Capital, and Cryptocurrencies. I write to make financial topics more accessible and create equal opportunity for the next generation of investors. I have personally invested in 20+ companies and funds.
All Comments