Facebook’s acquisition of Instagram reminds me of Google’s acquisition of YouTube — buying a whole different kind of engagement and interaction medium from their core offering. Google had failed to make an impact in online video.
Facebook’s mobile-social photo offerings are pretty weak. If Facebook does indeed leave it alone, I am pretty sure Instagram can continue to grow without worrying about building a business model for now. And that might be a good recourse for the small start-up.
Since acquiring YouTube, how has Google made YouTube better? The best quality videos are on Vimeo. The funniest are usually on Funny or Die. And unless I am mistaken neither were major players in the video space when Google purchased YouTube back in 2006.