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To put things in perspective, Houseparty was ranked 1143rd on New Zealand’s Apple app store on the 17 th of March, and six days later it skyrocketed to first place. Houseparty is the sixth most downloaded overall app in the US while holding the number one spot in 16 countries including the UK, New Zealand, and Canada. However, partway through March, Epic Games announced that due to the pandemic, they would make add-ons free, so it is difficult to tell how much revenue Houseparty would generate if they continued to charge for in-app purchases during their meteoric rise, especially since half the users are playing the in-app games.
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Houseparty’s revenues were $17,000 in February 2020, which increased to $155,000 in March 2020. There was a 500% increase in the number of times the app was downloaded between the week commencing the 2 nd of March to the 9 th of March. In March 2020, there were a total of 17.2 million downloads, compared to 533,000 in February 2020 (an increase of 2902%).
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Houseparty has grown dramatically in response to the effects of the COVID-19 pandemic. It offers a more organic way to communicate and the playful and informal approach resembles real life. Houseparty is not just a group chatting app, but a face to face social network. This creates an element of spontaneity, which doesn’t require meeting IDs or scheduling like Zoom. A group chat is referred to as a “house” and if the “door” is left unlocked, friends of friends can enter the chat. Opening the app indicates that you are available to talk and displays a list of friends who are also online, which allows for an immediate connection. Housepartyconnects to the user’s contact list and existing social networks. Its cross-platform interface makes it a great alternative to Facetime for those who do not use iOS devices. Houseparty is different- it can be described as a Facetime meets Zoom meets trivia-style app.
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How about professional platforms like Zoom, WebEx and Skype? While these are also very popular options and are the video conferencing systems of choice for working professionals and for scheduled meetings, they aren’t the best option for a casual chat among friends. However, Facetime requires all users to be using an iOS device, and Bonfire shut down after an early global test. Apple’s Facetime and Facebook’s Bonfire both introduced group chat capabilities. The new model also includes other in-app purchases while the core group video chat features remain free.Ĭompetition around group video chat is fierce.
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Users who play Heads Up! through Houseparty would be able to play the first three games for free before being charged $0.99 per game. This change led to the adoption of a freemium business model, relying on in-app purchases. Entertainment and was acquired by creators of Fortnite, Epic Games. In 2019, Houseparty partnered with popular app, Heads Up! (a charades-like game) which was co-created by Ellen Degeneres and Warner Bros. However, since the app is free to use, the company had not been profitable. Houseparty’s user base mainly consists of teenagers and young adults (60% of users are younger than 24 years of age) and the company’s management was adamant that they did not want to adopt an advertising business model.
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