Twitter has announced plans to acquire Niche, a New York-based start-up that connects social influencers with brands.
You can think of Niche as a talent agency that works primarily with Vine/Twitter-famous people, and the popular social network appears to have taken notice of some of Niche’s more popular campaigns over the past year.
“As more users and creators use different products as a way to share what’s happening in their world, brands are also looking to partner with those individuals in hopes of generating moments that resonate with the people they are trying to reach.” Twitter’s project management director Baljeet Singh wrote in a blog post announcing the acquisition. “The talent and creativity across the entire media landscape is incredible, and we hope this acquisition continues to inspire people to create great content.”
For Twitter, this could be the first step towards monetizing their Vine platform, which has remained surprisingly completely ad-free since it launched in 2012. Google-owned YouTube was quick to launch pre-roll advertising in 2008, and recently Facebook has been scrambling to expand their own video offering.
Without any native monetization options, Vine has uniquely found itself standing on the sidelines of its own success as it earns nothing with its most popular creators rake in millions from the platform. Now Twitter wants a piece of the action, and according to Re/Code they’re willing to pay between $30-60 million for the privilege.
This acquisition is sure to open a lucrative new revenue stream for Twitter, which could prove essential to the company’s efforts in to prove their long-term profit potential to investors.
The Vine video above is, ostensibly, an advertisement for Hewlett-Packard. However, its true value is in how entertaining it is to watch. So much so that it has been viewed over 13 million times.