The Business Model of Snapchat
Snapchat provides a fast and easy way to share moments with friends. After registration, users can send captioned photos and videos to a defined number of friends who are given a certain amount of time to watch the message. The user can control the time of the message viewing by setting the timer up to ten seconds before sending the message. When the time is up the message disappears forever. The recipients can take a screenshot while viewing the message and the sender receives a notification about it. Due to its disappearance feature, it is criticized for being prone to privacy-sensitive content, especially sexual content. Snap Inc.'s founders control a combined 95% of voting shares (Spiegel owns 48% and Murphy owns 47% ), which are undiluted and transferable to the other upon retirement or death.