Will We Pay For Social Media? with Hovhannes Avoyan (PicsArt)

Picsart's Success

• Despite the belief that people are unwilling to pay for social media, Picsart, a photo editing app, has achieved remarkable success with 140 million active users and 700 million installs.
• Contrary to expectations, Picsart's growth accelerated after transitioning to a subscription model.
• The company prioritizes optimizing its product for users rather than advertisers, leading to increased user satisfaction and growth.
• Picsart strategically decides which features to make free or premium based on their potential to go viral and contribute to growth.
• The company is not yet profitable but has control over its destiny and can become profitable if desired.

Hovhannes Avoyan's Advice for Entrepreneurs

• Develop coding skills or find a good technical co-founder.
• Understand the problem being solved.
• Master marketing and distribution strategies.

Picsart's Collaboration with Kim Kardashian

• Kim Kardashian is a valuable ally for Picsart, promoting the app on her social media platforms.
• Kardashian is not an investor in Picsart.

Pixar's Success in China

• Pixar has 15 million users in China, successfully entering the market by replacing pirated versions of its app.
• The company focuses on being a safe platform for kids and Gen Z users, using AI for content moderation.
• Pixar has not faced issues with Chinese censors but uses third-party vendors in China for content moderation.

Potential for Premium Social Media Platforms

• The speaker suggests the possibility of premium versions of social media platforms like Instagram and Twitter, offering ad-free browsing and advanced features.
• A small percentage of users converting to a paid subscription could generate significant revenue for these platforms.
• Premium features could reduce social media companies' reliance on surveillance and data collection, giving users more control over their data.
• Some users may not be willing to pay for a premium subscription, but the potential revenue from even a small percentage of users could be substantial.

Conclusion

• The speaker congratulates the team behind the video platform for their success in creating a premium social network and for their efforts to promote self-expression and body positivity.