How Does Dubsmash Make Money? The Dubsmash Business Model In A Nutshell

Dubsmash is a video-sharing social media service allowing users to creatively film themselves dubbing over music, movie, or television clips. It was founded in Germany in 2014 by Jonas Drüppel, Daniel Taschik, and Roland Grenke. The trio, who met at Hackathon in Berlin, became instant friends and set about working on a new start-up idea. As of 2021, the company still does not generate revenues, but its expansion is based on funding.

Origin Story

Dubsmash is a video-sharing social media service allowing users to creatively film themselves dubbing over music, movie, or television clips. 

It was founded in Germany in 2014 by Jonas Drüppel, Daniel Taschik, and Roland Grenke. The trio, who met at Hackathon in Berlin, became instant friends and set about working on a new start-up idea.

The first such idea was Starlize, a platform for users to create short-form music videos. While this venture ultimately proved unsuccessful, it did provide the foundations for Dubsmash. This time, the founders took the time to develop a much simpler user interface. They also knew that Starlize users preferred to share videos privately, so WhatsApp and Facebook integration was also added. Costs were also kept down by requiring Dubsmash users to save their videos outside of the app.

Dubsmash was launched in 2014 and quickly grew to a user base of 50 million after it was promoted by celebrities Selena Gomez and Jennifer Lopez. It then secured Series A and Series B funding in 2015 and 2016 respectively. After finding the German start-up scene to be process-driven and lacking creativity, the company relocated to New York City. This move also helped the company focus exclusively on American teenagers, utilizing influencers to get the word out and completely overhauling the app design.

In December 2020, Reddit acquired Dubsmash for an undisclosed sum. The platform continues to operate today as the main rival to TikTok, with over 52 million daily active users.

Dubsmash revenue generation

At the time of writing, Dubsmash does not generate any revenue. Operational costs have been historically funded by periodic injections of investment capital. Now that the company has been acquired, one can assume that costs will be met by Reddit moving forward.

Whether the platform will be monetized is less clear, however. Some argue the platform is following the model of Facebook, which was free of monetization for the first eight years of operation. Drüppel has also noted publicly that he has considered various monetization methods, including branded accounts, video advertising, and premium features such as animations.

While Dubsmash will continue to operate as a standalone brand, its video creation tools may or may not be integrated within the somewhat monetized Reddit platform. In an interview regarding the acquisition, Reddit CEO Steve Huffman noted that “Dubsmash elevates under-represented creators, while Reddit fosters a sense of community and belonging across thousands of different topics and passions. It’s clear that our missions closely align and that our community-focused platforms can coexist and grow as we learn from each other.

If monetization is added, it will need to accomplish two things. With a target audience of American teenagers, the service will need to abide by rules and regulations around advertising or selling to minors. Any monetization will also need to be sensitive to the under-represented and sometimes underprivileged communities it serves.

Key takeaways:

  • Dubsmash is a video-sharing social media platform founded in Germany by Jonas Drüppel, Daniel Taschik, and Roland Grenke. The service was acquired by Reddit in 2020 for an undisclosed sum.
  • With over 52 million daily active users, the potential for monetization on the Dubsmash platform is high. However, the service does not currently generate any revenue.
  • Dubsmash co-founder Drüppel has hinted at monetizing via advertising, premium features, and branded accounts. Any monetization will need to be sensitive to the target audience, which is mostly under-aged and under-privileged.

Read Also: How Does TikTok Make Money, How Does Reddit Make Money, How Does Instagram Make Money, How Does Snapchat Make Money, How Does Pinterest Work And Make Money.

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