After the giants enter the competition arena, is the “Club House” app dying?

Clubhouse co-founder Paul Davison still has the same energy and enthusiasm, despite the fact that the app’s popularity has plummeted.

The app launched in March 2020, and its rapid spread became evident in early questyear before significantly dropping in the Apple App Store rankings.

The Clubhouse, initially only available on iPhones, allows users to find and listen to conversations between people. Users join “chat rooms”, hosts can “pass the microphone” to chat room participants, and listeners can raise their hand when they want to speak.

“It looks like it’s fading away,” said the venture capitalist Huseyin Kanji, referring to the Clubhouse. The number of monthly active users in the UK, for example, dropped from 550,000 in February to 160,000 in September, according to data from app analytics firm App Annie.

keep up with the demand

The app has seen a huge increase in demand, in one moment in which was only downloaded via invitations to iPhone device users, and the price of app invitations jumped to nearly $ 400 at one point questyear on eBay, as the company struggled to cope with the huge initial demand for the application.

Clubhouse said its weekly user base has grown to over 10 million people within a year of its launch, and the app has been downloaded more than 34 million times, according to app analytics firm Sensortower.

Despite signs of the app’s waning popularity, its founder Davison sees the opposite, as he said in an interview with “CNBC”, seen by “Al”:” He just started growing very quickly, much faster than we expected or planned, or we were honestly hoping. “

“I think in December 2020 alone the number of users increased 10 times,” he added. That’s the time in which only 8 people were working on the app.

He explained that, during the period following this massive growth, he focused on expanding the technical infrastructure and increasing the size of his team instead of launching new features and improving the application.

“We have gone from eight people at the time to about 85 people today,” he said, adding that the number of employees is likely to increase between 100 and 200 next year.

After the giants enter the competition arena, is the “Club House” app dying?
Co-founder of the Club House, Paul Davison

Elon Musk and Mark Zuckerberg appear

The Clubhouse’s popularity gained a boost early on questyear when several big names were involved in the conversations on the platform.

In February, Tesla CEO Elon Musk and Meta CEO Mark Zuckerberg appeared at the Clubhouse, with Musk even asking Russian President Vladimir Putin if he wanted to join him for a podium chat.

But the hype began to wane around April, ironically when the company announced a round of financing of the C series. It was said that the round was valued at $ 4 billion, but it’s unclear what the startup is worth today.

When asked about the decline in downloadDavison said, “Startups don’t usually have a perfectly linear growth path.”

In an effort to expand the app to more people, Davison launched the app on the Android operating system in May.

He said 10 million new people joined in the six weeks immediately following its launch on Google Play.

And in July, in an effort to reach more people, Clubhouse ditched the invite-only rule and opened the app to everyone.

While the number of download dropped, Davison said the number of “rooms” created on the app per day went from 300,000 early this summer to around 700,000 by fall.

It currently has 8,000 listeners, compared to 5,000 a few months ago. Davison said he hopes to increase the number to 10,000, 15,000 and beyond in the coming months.

fierce competition

Several prominent companies have launched similar audio products after witnessing the start of the app’s success. Twitter launched Spaces, Facebook unveiled Hotline, Spotify launched Green Room, and Amazon is also working on a Clubhouse competitor, according to The Verge.

In an effort to separate itself from the competition, Clubhouse rolled out two new features on Monday. The first, Replay, allows creators to register and share their “rooms” on their profiles and in any other place. The second tells the creators how many people have joined their rooms in total compared to the number of people in the room in any time.

So far, the Clubhouse app hasn’t made any money, but the company plans to start charging users to access certain things in the near future.

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