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Meta’s Threads App Faces User Exodus Amidst Limited Features

Instagram-linked app sees daily active users drop to 23.6 million, raising concerns about its viability.

Meta Platforms Inc (NASDAQ: META) Instagram-linked app Threads faces user exodus, with daily active users dropping to 23.6 million from a peak of 49 million in July.

Twitter Inc had around 107 million users on July 14, while Threads’ retention of new users is down, the New York Times cites Similarweb.

Threads’ initial boom was short-lived as users discovered limited features, making it different from the expected “Twitter 2.0.”

Instagram’s head, Adam Mosseri denies claims of Threads mimicking Twitter and focuses on building new features and improving performance.

Mosseri’s response to the drop-off in user engagement suggests that the company is more focused on improving performance and introducing new features rather than increasing user engagement. This strategy may reflect a desire to avoid direct competition with Twitter and carve out a unique niche for Threads in social media.

Threads’ relationship with Instagram initially boosted its popularity, but users were disappointed by the required Instagram account deletion to ditch Threads.

In this photo illustration, logos of ‘Twitter’ and ‘Threads’ are displayed on computer and mobile phone screens in Ankara, Turkiye on July 18, 2023. Twitter Inc had around 107 million users on July 14, while Threads’ retention of new users is down, the New York Times cites Similarweb. PHOTO BY MUHAMMAD SELIM KORKUTATA/GETTY IMAGES  

Facebook and Twitter are at odds over rival apps, with Elon Musk’s legal team threatening to sue Meta for allegedly stealing trade secrets.

The statement by Facebook CEO Mark Zuckerberg about the goal of keeping Threads “friendly” as it expands indicates a cautious approach to user engagement, possibly to avoid replicating the contentious environment that often characterizes Twitter conversations. 

The focus on creating a more positive and less combative space could appeal to specific user demographics.

Produced in association with Benzinga

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