Pescatore’s comments come as the Meta-owned Threads surpassed 100 million users, becoming the fastest app to reach that milestone, handily beating ChatGPT to the accolade.
Mark Zuckerberg, Meta’s CEO noted that the launch was “way beyond our expectations”.
Threads was announced on July 6 and after its launch, Elon Musk, the CEO of Twitter filed a lawsuit against Meta platforms, accusing the firm of engaging in “systematic, wilful and unlawful misappropriation of Twitter’s trade secrets and other intellectual property”.
Musk demonstrated his discontent, taking to Twitter to voice his anger: “Competition is fine, cheating is not” he wrote.
Pescatore says that the company has been on a rollercoaster since it was acquired by Musk, and this launch will no doubt create more twists and turns.
“The latest chapter in the Musk and Twitter saga and user discontent clearly demonstrates the need for a true alternative.”
Musk has angered Twitter users and advertisers since last October, when the acquisition was finalised. He announced mass layoffs and significant changes to the company, while Zuckerberg has taken advantage.
Yet even as Threads experiences great success, Pescatore notes that regulators will be concerned.
Ultimately, though, the launch is all about diversifying, creating the next big thing that captures public attention, which will drive engagement and generate new revenue streams.
“Meta stands a better chance than most, given its scale and ability to attract millions of current users, but whether others can succeed and if there is a role for another app remains unclear,” he adds.
The need for a super app
The notion of a super app is not new and is very much needed in the video world, according to Pescatore, as many users have a few apps by category – whether that’s video, news, social media or games.
“People are now getting increasingly frustrated with a slew of apps, so driving usage all towards one destination will increase engagement and ultimately make it easier for them,” Pescatore says.
He adds that by having a better sense of users’ habits under one super app, we will expect to see more hyper-personalised services, features and offers.
This opens up the scope for plentiful business models including subscriptions and ads.
“Timing in this endeavour will be key, and the merits will need to be clear for users to get on board.”
