Kik CEO: “Hey internet are you listening? Messaging has peaked”

It has certainly been an interesting month for messaging apps in the U.S.

Around the same time the New York Times penned its zeitgeist proclamation that messaging apps like Snapchat will become hubs of content and commerce like China’s WeChat, we learned from Comscore that these apps have plateaued in the U.S. in terms of growth. The companies are still attracting new users, but the rate of adoption is slowing in the 18+ crowd.

Right on schedule, Snapchat launched its Discover media feature this week, showcasing content from companies like CNN and Vice in a big departure from its former chatting focused strategy. Was Snapchat leaving messaging behind?

Kik CEO Ted Livingston, one of Snapchat’s biggest messaging competitors in the U.S., has been wondering the same thing. Although the apps is ranked sixth in U.S. social networking apps by iOS download, and 26th in apps overall, Kik is also struggling from a slowdown in growth.

I caught up with Livingston to get his take on what’s happening in the U.S. messaging app world, what he thinks of Snapchat’s Discover tool, and whether a “WeChat of the West” is still possible. What follows has been edited for length, order, and clarity.

Kik just hit 200 million registered users, but the Comscore data showed Kik –and all the other messaging apps — have flatlined in terms of growth. What did you think of that?

I can tell you from Kik’s perspective, we’re not growing as fast in the U.S. as we were in the past. I can tell you it’s not bullshit. We were very relieved to see [the Comscore data]. We were thinking maybe there’s something wrong with just us, but it’s everyone. Hey internet are you listening? Messaging has peaked!

What do you think is happening? Is messaging not actually the future of social media?

App adoption in general is plateauing in the U.S. On top of that smart phone adoption has plateaued in the U.S.

Chat in the West is a commodity. When a 15-year-old kid says, ‘Can we chat on Kik mom?’ Mom is like, ‘No, why would I?’

For us that’s where the [WeChat-like] platform play starts making sense. One you have critical density among youth and you have these non-commodity services on top of chat, teens will bring in everyone else they know. They’ll bring in parents because they need to buy something for them, or a friend because they need them to plan events. The platform may become a ticket to the rest of the demographic.

So that’s where the future growth will come from?


How does the plateau impact your plans in the present?

In a world where we are the only one plateauing, then we have the worst strategy. We’ve got to figure out how to keep up with everyone else.

When everyone is plateauing the question is what do we do now?

On that note, what do you think of Snapchat’s Discover? Is this the beginning of its big WeChat play?

Now it’s less about connecting with your friends as following brands. I’m like, ‘Oh shit, they’re just becoming a media company?’

Some have argued that media is just their first step in becoming a portal to other experiences, like gaming or personal budgeting apps.

I would say it’s definitely a step to becoming a platform…a broadcast platform (as opposed to a messaging platform). Snapchat started somewhere in between Kik and Instagram: private broadcast. But with the Stories feature they have gone more and more towards broadcast. So they are now a broadcast tool.

What is the best content to go from a broadcast tool to broadcast platform? To me it’s media. Makes complete sense.

Did you see that coming?

I did not, that’s not what I would’ve done. To me it’s very relieving because it takes some pressure off us. A messenger by itself is extremely difficult to monetize and it always has been in history. On the other side it’s brutally simple to figure out how to monetize a broadcast network like Instagram, Twitter, Facebook, and now Snapchat.

Maybe [Snapchat] has a great answer [with Discover] but it takes them further away from being the operating system that WeChat has been.

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The search engine that had a strong claim on the web long before upstart Google (s goog) came along may be down, but they aren’t out. They’re planning a massive undertaking, a cross-platform release of a mobile suite of applications that, at least according to them, could revolutionize the way you use the web from your mobile device.

Yahoo Mobile (not Go. Forget Go ever existed.) will drop simultaneously for mobile web browsers, as a dedicated iPhone app, and as a dedicated app for other smartphones as well (which will be far easier now that everyone is launching an App Store clone). They aren’t being too clear about the specifics, but it’s basically shaping up to be a mobile web portal, which sort of is, and sort of isn’t like Google Mobile. Yahoo Mobile will integrate Mail, Messenger, News and Calendar, although it’s not made explicitly clear whether those will just be available as links to web-based content or integrated into an iPhone app. They also talk about Opera mobile being integrated into the package, but whether or not that particular piece of the puzzle makes its way onto the iPhone is another story.

This will be Yahoo!’s (s yhoo) first major foray into the arena of the iPhone (if you don’t count the curious oneConnect social network application), and it will pit them head-to-head against their dominant rival Google. If I’m at all an accurate judge, I’d say Google is reserving fear for when something actually materializes, and even then, I don’t think Yahoo! can offer up anything to seriously challenge their dominance of the iPhone platform. Somehow getting Opera onto Apple devices would be a coup, but if it happened, it would just pave the way for Chrome Mobile, which would probably end up as another “W” in the Google column. Is it just me, or does anyone else sort of feel like Yahoo! should just throw in the towel at this point?