Users get bored with GIFs.
Once a short boom, now consumers are fed up with making GIFs and companies have no revenue in the industry.
World’s largest GIF maker says young users aren’t interested in the genre. They find animations outdated, boring, and annoying.
Nanny To quote internet culture researcher Ryan Broderick, each generation’s habits are markedly different. “GIF files become stale over time. They don’t work well on mobile,” he said. The researcher says the loss of footage of the film is because companies like Giphy are constrained by tech giants, copyright and cellphone laws.
Giphy cites signs that content creators have stopped tracking animation, with uploads declining over the past two years.
The UK’s Competition and Markets Authority (CMA) is asking Meta to re-sell Giphy over unfair competition concerns. The CMA believes this deal has eliminated a rival competitor in the video advertising space. Also, it will be difficult for Jiffy’s competitors like Facebook, Instagram, and WhatsApp to get under the same meta umbrella once GP returns.
In June 2020, Meta announced the acquisition of Giphy for $400 million. It was one of the biggest animation sites on the internet back then. Users can create and share their own GIFs directly on the web and download them for use on different platforms. Before that, Meta GIF was used by ecosystem for apps like Instagram, Facebook, Messenger and WhatsApp.
In November 2021, the CMA decided to force Meta to sell Giphy to ensure fair competition. Meta rival Snap rose to fame by buying Giphy for $142 million. Snap then acquired Gfycat, a competitor to Giphy.
Giphy says its popularity is waning. “There is no business that generates real income,” the company said. So you need to find a company that has users who can use the service and develop their animation business.
Analysts have expressed interest in Giphy, including several tech companies such as Amazon, Apple, Snap, and Twitter.
on Thursday (Consequences Guard)