In the EU, Meta's fresh competitor for Elon Musk's Twitter successor X has emerged. The social media giant launched its short messaging service Threads, built on the foundation of Instagram. Despite a five-month delay, Threads enters the market with an advantage, boasting connections to hundreds of millions of users because of its Instagram roots. Users can log in using Instagram credentials or anonymously, but without a profile, they can't create or interact with posts.
Initially, Threads skipped the EU due to legal uncertainties regarding digital laws. The industry believes this refers to the Digital Services Act (DSA) and Digital Markets Act (DMA). Meta's CEO, Mark Zuckerberg, sees potential for over one billion users, hopping on the train of public discourse-focused services.
Meanwhile, X, the Twitter rebranded by Musk, struggles with a falling user base and the departure of major advertisers. Musk's support for an anti-Semitic conspiracy theory sparked a display of ads from well-known brands alongside Nazi posts. Hate speech researchers pointed out the coincidence, and advertisers' patience ran thin. Musk then lashed out at these brands, blaming them for the platform's failure.
X relies heavily on subscription revenues now, although these funds can't entirely fill the gap left by advertising revenue. According to Bloomberg, X expects to generate $2.5 billion in revenue this year. However, that's a significant drop compared to 2021's figures.
Other competitors like Mastodon and Bluesky are smaller than X, but Threads, as the Instagram-based service, appears to be a strong candidate for taking advantage of Twitter's former importance. Despite Threads' potential, competitors like Mastodon shouldn't be disregarded, as they attract niche audiences, ensuring a diverse online community.
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Meta's introduction of Threads marks a turning point in the competition landscape. The platform's integration with Instagram, AI tools, and AR capabilities can potentially provide a more engaging experience. Although Threads targets a different demographic, it's still a strong competitor for X. While this competition might drive innovation, it does not necessarily result in better user experiences or privacy protections.
