In 2010, Systrom and Krieger, inspired by old Polaroid photos, created the Instagram Application. They decided to change the name from Burbn to Instagram to reflect the function of the app. In October 2010, Instagram was available for download on iPhone. Its users could add photos to Instagram, Twitter, Facebook, and Flickr as well as edit them with cool features. In a few hours, 10,000 users downloaded the app and 200,000 within the first week.
Instagram was not the first of its kind so what made it so successful? This application is similar to Facebook with the options to add friends and “Like” pictures. It was originally only for iPhones, but became available to Androids in April of 2012. When the app went to Android its user numbers increased significantly. The Instagram Application was designed to work well with social networking sites and the powerhouse Facebook saw its growth and potential. Facebook purchased Instagram for $1 billion in cash and stock. Facebook CEO Mark Zuckerburg allows Instagram to continue running independently with a close watch to ensure it is still growing. Facebook also allows Instagram users the ability to still post on their other social accounts and only on Facebook if they choose to do so.
Today, Instagram has over 30 million users and averages five million uploads per day. Kevin Systrom owns 40% of Instagram, approximately $400 million and Mike Krieger owns 10%, approximately $100 million. At a SXSW Conference, Systrom said “Over 100 million photos are uploaded to Facebook every day. There are 3.5 billion camera phones in use around the world.” My generation is accustomed to sharing their thoughts and actions on social sites, like Instagram. One thing is for certain; 28-year-old Systrom and 25-year-old Krieger are great entrepreneurs, under the age of 30, and are inspirations for generations to come.
“Is our photo madness creating mediocrity or magic?”- Kevin Systrom
BBC News. (n.a.). 10 April 2012. Facebook buys Instagram photo sharing network for $1bn. Retrieved from http://www.bbc.co.uk/news/business-17661976
Rushe, Dominic. 10 April 2012. Instagram founders turn two years of work into $1bn – only in Silicon Valley. The Guardian News. Retrieved from http://www.guardian.co.uk/technology/2012/apr/10/instagram-founders-two-years-silicon-valley
Marston, Rebecca. 10 April 2012. Instagram’s founder Kevin Systrom and Mike Krieger. BBC News. Retrieved from http://www.bbc.co.uk/news/business-17661976