vine shut down

Why Did Vine Shut Down In 2017? A Complete Breakdown

Khyati Hooda
By Khyati Hooda 9 Min Read

Vine was a social media platform that allowed users to post six-second videos. This article is for you if you’re into social media but haven’t heard of why Vine shut down.

The app was released in 2013 and soon garnered popularity. Apple and Google named it one of the most significant applications, and it has over 200 million active users globally. The firm stated in 2016 that it would be shutting down the app.

Vine shut down due to high competition, a lack of monetization and advertising possibilities, employee turnover, and concerns within parent firm Twitter.

In light of recent Twitter developments, we decided to investigate how Vine evolved from being one of the most popular applications to being unceremoniously shut down.

Here are some of the reasons why Vine shut down.

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What exactly was Vine?

Vine was a social media video hosting service that allowed users to make and share 6-second films.

Because of its character length constraints and social aspects, Twitter promotes itself as a microblogging social media platform (follows, retweets, etc.). On the other hand, Vine was a microblogging platform due to its video length constraint mixed with comparable social elements.

Vine attempted to accomplish what Twitter did for traditional blogging for YouTube vlogs to put the notion into context. As a result, it makes sense that Twitter purchased Vine for $30 million before the app ever debuted. As a result, it makes sense that Twitter purchased Vine for $30 million before the app ever debuted.

It provided Twitter with an easy way to compete with (much larger) social media behemoths like Facebook and Google on video content.

Why did Vine shut down?

The basic answer is that a losing company lost popularity to similar rival sites, most notably Instagram. Spending money while losing market share is unsustainable.

Of course, the extended answer contains several factors. Vine was unprofitable for what reason? Why did it begin to lose appeal while having the advantage of being the first to market?

Here are the five most important reasons which will tell you why vine shutdown:

1. Vine was unable to fulfill market demands.

Initially, the app was envisioned as a social networking platform with a microblogging space for users. The market is always a deciding element for every organization that wants to grow and succeed. If the market is unfavorable, the company concept dies and fades into obscurity in the least amount of time. 

Users will exchange short video snippets with their friends and family on the site. However, the basic concept changed once the application launched. It was very different from what was meant to be an entertainment platform for consumers. Most platform users become passive consumers, seeing just a tiny amount of material provided by other users.

As a result, the platform had a minority user base, and the platform’s lack of attention persisted. Unlike other platforms with many artists, the vine app failed in this business element and could not be sustained for an extended period. 

The network’s whole ecology was based on producers, who meant to continuously enhance the platform with their video material, but only a few users were to that effect. There were just so many of them to keep the job going. If the designers gave them away for whatever reason, the platform would collapse. 

In that instance, the main principle would have been to continue attracting users to create content and connect with the site. The video duration restriction was also an impediment to what was noticed and deemed too short for people to use.

2. Vine’s monetization issues: 

The monetization issue was not limited to the content providers; the real business was also losing money. Vine was hesitant to try out monetization strategies, which is standard with hyper-growth network-effect firms. This meant, however, that once the growth stopped, there was no need to keep the service running.

For example, most of the money going into Vine’s ecosystem came from direct sponsorships for the top content providers. On the other hand, Vine never sought to include sponsorship options in the platform.

Twitter purchased a social media talent agency to monetize Vine indirectly. However, this was not a viable solution to Vine’s challenges. The agency could not convince its clients to stay on Vine rather than go to other rivals, but a robust monetization strategy could have.

3. Vine’s parent organization has problems.

The problem here was primarily due to Twitter’s acquisition of the Vine app to promote its brand and scale more quickly. The entire concept was based on Twitter’s usage of the Vine audience to promote its brand and build popularity.

Unfortunately, less attention was paid to the Vine app itself, resulting in its demise. Furthermore, Vine as a platform was not supposed to be a different product that would capture consumers’ attention and be invested in heavenly by customers.

Youtube

This was one of the reasons why the Vine app failed miserably: it lacked a long-term objective to propel it forward. You may have wondered why Instagram was successful after Facebook bought it and why Vine failed when Twitter bought it.

The primary explanation for this is that Instagram needed to grow to a broader audience and expand its base while hitting another business high. Furthermore, from the moment it was bought until today, Instagram has received a great deal of attention.

4. Vine’s management turnover, lack of focus, and leadership issues:

Vine’s conflicts with Twitter certainly caused a slew of issues for the company in subtle ways that were not evident to outsiders. Whatever the problems were, it’s inevitable that Vine struggled to retain its senior leaders.

Two of the founders departed in 2014 (theoretically Vine’s strongest year), while the third was laid off, later on, implying a clash with Twitter’s higher-ups.

When there is an issue at the top, it eventually spreads to the whole team. Maintaining excellent leadership and a strong sense of direction and purpose is challenging in such conditions.

5. The fierce vine competition

Vine faced a slew of rivals, making it impossible to reach its stated ambitions and objectives of becoming a microblogging platform to be reckoned with.

The available competitors arrived with considerable funds to tempt the Vine audience and content providers, which turned out to be a nightmare for the firm. Furthermore, short videos are typical across practically all social media platforms, including Snapchat, YouTube, and Facebook.

The first backbone fracture for Vine occurred when Instagram added a 15-second video feature on their app; this marked the beginning of the end for the Vine app. As the market pioneer, Vine neglected to develop its features and grab the market while it had it virtually for free.

Hopefully, you understand these five reasons which tell you why Vine shut down. 

Conclusion

As discussed in this article, the Vine app’s collapse was not just due to commercial concerns. The CEO lacked the determination to see the Vine app through the crisis period. Furthermore, Twitter caused a slew of issues for the company, making it inaccessible to the user base expected to be drawn to the service.

Moreover, the app’s original creator departed Twitter; thus, no one else could fight for its growth once repurchased. Finally, there was a report that disagreements between a Twitter official and the Vine creators led to their resignation in 2014.

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Posted by Khyati Hooda
Khyati is an entrepreneur, marketing consultant and growth hacker. She helps sustainable revenue growth through marketing for SaaS and subscription companies. Her expertise lies in building scalable customer acquisition strategies and implementing effective digital marketing campaigns that drive high-quality, low-cost leads for startups. Khyati has managed over $50M in marketing budgets across various industries including technology, finance, education, retail, consumer goods and more - successfully delivering over 15x ROI for her clients.
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