Instapaper, a mobile reading app started by Marco Arment in 2008, revolutionized the reading experience on slow networks and the iPhone. However, competition from other reading apps and the launch of Safari's reading list feature made Instapaper's market appeal niche. In 2012, it was acquired by Betaworks, while a competing company rebranded as Pocket and gained popularity. Instapaper's lack of an Android app and paid iPhone app hindered its growth compared to Pocket. To secure the future of Instapaper, Marco Arment sought the help of John Borthwick, CEO of Betaworks. They reached a deal where Betaworks would have a majority share and invest in Instapaper. Brian Donohue was hired to run Instapaper, and he advocated for making the app free, resulting in increased downloads and subscriptions. Instapaper was eventually acquired by Pinterest. Brian Donohue shares his experience of operating Instapaper through the acquisition process and moving to California. Instapaper was later spun out of Pinterest and is now operating independently. The team at Instapaper balances simplicity with new feature development by prioritizing user requests and evaluating features based on user demand and competitive advantage. Delivering a good product has been the best growth strategy for Instapaper. Brian Donohue shares his productivity hacks for catching up on saved articles, including using the sort option on the Instapaper mobile app and experimenting with minimizing distractions.
The history of Instapaper
Instapaper, started by Marco Arment in 2008, revolutionized mobile reading by solving the problems of slow networks, difficult reading experiences, and the iPhone's potential as a reading device. However, with the rise of other reading apps, Instapaper's market appeal became niche, leading to its acquisition by larger companies in 2016. Despite competition and the launch of Safari's reading list feature, Instapaper maintained a dedicated user base. In 2012, it was acquired by Betaworks, while a competing company rebranded as Pocket and gained popularity. Instapaper's lack of an Android app and paid iPhone app hindered its growth compared to Pocket.
- Instapaper was started by Marco Arment in 2008 as a bookmarking service.
- It gained popularity for its text parser and reading view feature.
- In 2008, Instapaper launched its iOS app, allowing offline article saving.
- Instapaper solved the pain points of slow networks, difficult mobile reading experiences, and the iPhone's reading potential.
- The market for Instapaper became more niche with the availability of other reading apps.
- Instapaper was acquired by larger companies in 2016.
- Safari's reading list feature and other apps with similar save-for-later functions reduced Instapaper's user base.
- In 2012, Instapaper was acquired by Betaworks.
- A competing company rebranded as Pocket and gained popularity.
- Instapaper lacked an Android app and its iPhone app was not free, unlike Pocket.
Free competitors enter the market
Instapaper faced a decline in downloads in 2012 due to the emergence of a strong free competitor, Pocket. To secure the future of Instapaper, founder Marco Arment sought the help of John Borthwick, CEO of beta works. They reached a deal where beta works would have a majority share and invest in Instapaper. In April 2013, the deal was announced and Brian Donohue was hired to run Instapaper. Eventually, Instapaper was acquired by Pinterest.
- Instapaper lost downloads to free competitor Pocket in 2012
- Marco Arment reached out to John Borthwick for assistance
- Beta works acquired a majority share of Instapaper and continued to invest in it
- Brian Donohue was hired to manage Instapaper
- Instapaper was later acquired by Pinterest
How Brian joined Instapaper
Brian Donohue joined Instapaper in July 2013 as an iOS developer and quickly took on additional responsibilities. Despite doubts about the app's ability to compete as a paid application, Brian advocated for making it free. He successfully secured a slot for Instapaper to be featured as the free app of the week in December 2013.
Transitioning from paid to freemium
Transitioning from paid to freemium:
- Offering a two-month free trial during a free app of the week trial period resulted in a significant increase in app downloads and a 10-15% increase in subscriptions for Instapaper.
- Being a paid app limited growth, but users could be successfully converted to subscribers once they started using the app.
- Instapaper decided to make the application free based on the positive results of the free trial strategy.
- In the context of operating Instapaper through an acquisition, the transition from a paid subscription model to a freemium model involved adding more features to the subscription package, increasing the price, and eventually making the application free.
- Initially, the transition led to a decrease in revenue, but within a few months, the losses were recouped and growth was achieved.
- Offering certain features for free while charging for others was part of the strategy.
- Focusing on business fundamentals, controlling costs, and achieving profitability before the acquisition were highlighted as important factors.
Pinterest's acquisition of Instapaper
Instapaper, a popular bookmarking service, went through a devastating acquisition process in 2015 but eventually found success when it was acquired by Pinterest. Here are the key points:
- Instapaper received acquisition offers in 2015, including one in the eight-figure range from a large media company in New York.
- The team at Instapaper initially considered the acquisition but backed out due to a strategic change in direction by the company.
- The founder had to rebuild Instapaper from scratch after the failed acquisition.
- Eventually, Instapaper was acquired by Pinterest, aligning well with the motivations of shareholders, employees, and users.
- The acquisition process took around nine months, starting in December 2015 and finalized in August 2016.
- The whole team at Instapaper was aware of the acquisition discussions, leading to moments of uncertainty and negotiations.
- Brian Donohue, a speaker in a video, shares his experience of operating Instapaper through the acquisition process and advises caution and integrity during such negotiations.
- Donohue ultimately moved to California after the acquisition by Pinterest.
Moving to California
- Brian Donohue shares his experience of operating Instapaper through an acquisition and moving to California.
- He highlights the differences between New York and San Francisco.
- He expresses his interest in outdoor activities and the benefits of working at a large Silicon Valley company.
- Brian discusses his career trajectory in building software, starting from a small startup to managing a team of engineers at Pinterest.
Working on Instapaper within Pinterest
Working on Instapaper within Pinterest involved discussions about its future direction, with options including growing it as a business unit, using data science for news insights, putting it in maintenance mode, or shutting it down. The recommendation was to put it in maintenance mode to maximize value from Pinterest. Brian Donohue dedicated time to maintaining and updating the app, but eventually, Instapaper was spun out.
Spinning Instapaper out of Pinterest
Instapaper, a popular application, has been spun out of Pinterest and is now operating independently. Unlike other acquired apps, Instapaper has a small team and loyal user base, making it easier to monetize and cover costs without significant upfront capital. The former engineer at Instapaper, Brian Donohue, proposed the spin-off to the CEO of Pinterest and will continue running it in a similar manner. The company raised $80,000 and aims to become a long-term business, offering preferred shares with a 25% return on investment. Instapaper is experiencing positive growth, with new subscribers and plans to establish the new company.
Jareau Wadé asks - What types of product integrations could Pinterest have done with Instapaper?
The potential product integrations between Pinterest and Instapaper were discussed in the video. Key points include:
- The idea of using aggregate signals from URLs in Instapaper to create a news-based feature within Pinterest.
- The low overlap between URLs in Instapaper and Pinterest, making the integration less effective.
- The challenges of implementing an offline reader mode for Pinterest due to scale and user expectations.
- The need to prioritize critical tasks and focus on features that cater to the average user.
- The importance of simplicity and prioritizing features that appeal to the majority of users.
Ryan Hoover asks - I’m curious how he and the team balance simplicity with new feature development/product expansion.
The team at Instapaper balances simplicity with new feature development by prioritizing user requests and evaluating features based on user demand, competitive advantage, and integration into the business model. They prioritize keeping the overall product simple rather than moving metrics on specific features. They have a strategy of hiding features in hidden places, believing that those who want the features will go out of their way to find them. They have features like text-to-speech and speed reading, which can be accessed through the reader view and the share button. They also have a voice-enabled mode for text-to-speech, which can be used with Google Assistant or Siri.
Raymond Durk asks - I love the rapid reading mode but would also love a voice enabled mode where the Google Assistant or Siri reads it. Speaking of I'd use it on my Google Home to listen to news if that was a skill.
The possibility of adding a voice-enabled mode to Instapaper for Google Home and Alexa devices is discussed. The challenges of implementing this feature, such as passing characters in a response and the costs of using Amazon Poly, are mentioned. The difficulties of integrating third-party text-to-speech companies and the increased size of the mobile application are also discussed.
Brian Kim asks - Any growth hacks that worked well?
The most profound aspect of the text is that delivering a good product has been the best growth strategy for Instapaper.
- Instapaper's focus on delivering a good product has been their best growth strategy.
- Growth hacks involve posting a product somewhere else to attract users from another service.
- Many growth hacks and tactics don't work for Instapaper due to their specific user content.
- Removing the paid download barrier significantly boosted Instapaper's growth.
Gustaf Alströmer asks - How does it make time for focused time to catch up on everything he saves? What are his best productivity hacks related to this?
Brian Donohue shares his productivity hacks for catching up on saved articles. Here are the key points:
- He saves more articles than he reads and reads less often than he would like.
- He used to have offline time to read on Instapaper, but now needs dedicated time on weekends or nights.
- He uses the sort option on the Instapaper mobile app to quickly go through short articles.
- He periodically deletes articles he knows he will never get to, like outdated news articles.
- He uses a Chrome extension to identify articles he will actually read.
- He experiments with greyscale and airplane mode on his phone to minimize distractions.
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