Twitter’s acquisition of Niche suggests several new innovations are on the horizon for the social network company.
It was announced last week that Twitter had acquired Niche, a startup based in New York that introduces advertisers to celebrities and creative stars, who are increasingly able to make money from Twitter and Vine. In addition, it offers analytics to support these stars, offering more than a hint Twitter sees Vine as a potentially monetized service.
Two years ago Twitter launched Vine. In the intervening period some of the online community’s engagement and growth has been questioned. Twitter has recently moved to innovate by establishing a video service, claiming it would differ from the Vine video platform. Niche could help with this diversification.
Writing in a blog post announcing the deal, Twitter’s director of product management Baljeet Singh said “Niche has been a key partner to both Twitter and Vine over the last year.” Singh then added, “the company has helped fuel the creator economy by developing leading technology, consisting of free, cross-platform analytics, as well as connecting the creative community directly with the world’s biggest brands.”
Niche launched in 2013 with the aim of becoming a tech platform. It has since moved closer to a service business and has raised about $3 million in funding to date. The exact terms of the Twitter acquisition have not been disclosed, although one report suggested the price was “about $30 million.”
Twitter has always struggled to know exactly what makes it successful. Successive chief executives have come and gone and none of the startup’s original roster remain. However, Twitter has continued to grow despite these setbacks and the acquisition of Niche is a definite signal of intent.