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Yahoo Messenger will fail due to Network Effects

Yahoo has released an app on the iOS and Android titled Yahoo Messenger. This app is your typical messaging app that has a lot of features. These features include group chats, availability status, and weird screen names. Where the app differs from other messaging apps is that you can download photos that are sent you you at the full resolution that they were taken instead of the typical compressed file. In addition, this app allows you to unsend/revoke messages that you regret sending. The messages would be wiped from both your screen as well as the person who you sent the message to. Yahoo Messenger offers what few messenger apps offer which is the ability to like a message as well as the ability to send GIFs directly from the app without the use of any third party. It would seem as if this messaging app would be an ideal app for many people, but not a lot of people will use it. This is due to network effects.

Although Yahoo Messenger could seem like one of the better messaging apps out there, the problem is that there are so many other messaging apps out that tons of people use and are already more popular. Examples include Facebook Messenger, GroupMe, WhatsApp, WeChat, and tons of others. This messaging app wont succeed unless it can get past the tipping point. Hoping that the app will grow slowly will not make it succeed. It will also be hard because to achieve getting over the tipping point can be difficult. Most of the messaging applications are offered for free so there is no price fluctuation you can really do with the app. The only hope Yahoo Messenger can have is if some celebrity or fashion leader would endorse the product to help drive users to it. However, celebrities often don’t endorse group messaging apps so this will not be the best option. If people around you are using Yahoo Messenger, then you might just start using it. However, since this unlikely because of the variety of other messaging apps, Yahoo Messenger will be a bust.



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December 2015