What happened to the background that the founder of Instagram suddenly resigned?


by TheDigitalArtist

Instagram CEO Kevin Cistrom and CTO Mike Krieger announced their retirement on September 24, 2018. Many media reported that resignation of two co-founders who were suddenly revealed "There was a tense relationship with CEO Mark Sackerberg (parent company)". Ben Thompson, an analyst who has been analyzing trends in Instagram for many years, is thinking about the background of two resignations.

Instagram 's CEO - Stratechery by Ben Thompson
https://stratechery.com/2018/instagrams-ceo/



Instagram's co-founder Kevin Cistrom and Mike Krieger's resignation were revealed on 24 September 2018 in a report by the New York Times.

Instagram's Co-Founders to Step Down From Company - The New York Times
https://www.nytimes.com/2018/09/24/technology/instagram-cofounders-resign.html

And then, at Instagram 's blog, Mr. Sistom admitted about resignation, "I am planning to leave Instagram to do creativity and curiosity search again."

Instagram co-founder resigns - "Curiosity and creativity will be explored again" - CNET Japan
https://www.cnet.com/article/35126094/



Facebook 's Mark Zuckerburg said two people resigned "Kevin and Mike are outstanding product leaders and Instagram reflects their creative talent. For the past 6 years I have worked with them I have learned and enjoyed a lot of things, I pray for their success and I am looking forward to what they will make next. " Does the founder of Facebook and Instagram fight with the fact that the New York Times reported before the official announcement and also that the specific reasons for retirement are not revealed? It is being rumored.


Instagram originally started from a project called "Burbn". Burbn was a social check-in application that allows you to share your location and photos, but Mr. Sistrom and Mr. Krieger noticed that users frequently use the "share photos" feature instead of checking in, so they shared I created a specialized application. This is "Instagram".

Instagram is "Free Filter" at the time of start Current product "Currently sharing pictures in Instagram feed" "Can like" and "like" or "Can easily share with other SNS such as Twitter · Facebook · Flickr" It was also a point that we had already had the root part of it and provided an excellent user experience that we can instantly share it without going through the camera roll. Also, unlike many photo editing applications, the fact that it itself forms a social network has also been said to have greatly influenced subsequent growth.

Instagram grew in a flash and gained 10 million users in one year since it first appeared in the App Store in October 2010, six months later the number of users has expanded to 30 million. In 2012 it will correspond to Android and will be bought by Facebook for 1 billion dollars (about 81 billion yen) in April of the same year.


by geralt

Instagram's business model is a way to raise funds from venture capital, firstly "product" existed first, then expand infrastructure to continue expanding user base, introduce business model of advertisement, sales There was a great difficulty in building a team.

Meanwhile, Zuckerburg CEO sells the first advertisement in two months after he founded Facebook in February 2004. For Zuckerberg CEO of course the product was important, but also "making a company" was also emphasized.

It was a famous story that "I'm CEO, Bitch. (I'm the CEO, Bitch)" was written on the business card of Zuckerberg who was a college student. In addition to CEO's not only making excellent products but also thinking that it is important to control the company and create a business model, CEO Zuckerberg was literally "CEO", while Mr. Sistrom and Mr. Krieger It can also be said that the point that it was "an outstanding product leader" is different.



The best masterpiece produced by Mr. Sistrom and CEO Zuckerberg is "Instagram Story". It is possible for Mr. Sistrom to acknowledge that the basic concept of the instagram / story comes from Snapchat . The structure of the instructor-story that posts disappear after 24 hours is similar to Snapchat, which makes it possible to keep millions of users in the Instagram that think "Let's use Snapchat" I made it.

If you look at the number of monthly active users of Instagram, you can see that the year-on-year growth rate (red graph) is jumping right after the story's offering started. Against this, we can see that the story not only stopped the growth of Snapchat but also accelerated the growth of Instagram itself.



On the other hand, Facebook has been focusing on advertising news feeds for several years. This "advertisement" refers not to simply creating an advertisement that "develops" and "shows" targeting technology, but refers to the construction of a backend mechanism for advertisers including POS systems and non-Facebook data sources . By adopting this mechanism also in Instagram, although Instagram 's early product team focused on the user experience, Instagram grew faster than ever in terms of monetization. And Facebook's own revenue also increased by extending the scope of advertising campaigns and targeting on Facebook to Instagram.

However, as Instagram and Facebook are closely intertwined, the problem of Instagram will eventually become a Facebook issue and Facebook will provide a solution. Even if the story is excellent as a product, I can not tell it without the advantage of the size of the network that Instagram has and the back end of advertisement to share with Facebook. In other words, when comparing Snapchat and other competing products with Instagram, its advantage comes down to parts other than the functional aspects that Mr. Sistrom specializes.

This is the background of every conflict that caused Mr. Cistrom and Mr. Krieger to resign, Mr. Thompson says. In addition to not controlling their own company, they are not essential for solving the problems faced by their products. Monetization of an instagram / story eventually becomes Facebook's problem.

Mr. Sister and Mr. Krieger got the freedom to concentrate on money and products by being bought by Facebook, but Thompson said this choice made Mr. Zuckerberg the true CEO of Instagram .

@ mikeyk and I are grateful for the last eight years at the age of 13 with on the team. We've loved learning to scale a company and nurture an enormous global community. And we could not have done it without our amazing Instagram team, and the support of @ zuck, @sherylsandberg, @schrep, and Building new things we need planning Step back, understand what inspires us and tomorrow I am excited for the future of instagram and Facebook in the coming years as we transition from leaders to just two users in a billion. Thank you for being part of Instagram's community. I t's been (and will continue to be) an honor

Posts Kevin Systrom (@ kevin) shared -

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