Clubhouse Becomes the Latest Hot App By Doing Everything Wrong


From one three. I'm david brown. And this is business. Worst daily on this tuesday march second. Let's say you were invited to a party. Where the guest list included oprah drake and jared lehto as well as top venture capitalist business executives journalists and all manner of influencers. Would you go well. That party is happening on a beta version. Social media app called clubhouse and in about nine months. The app has gained an estimated three million users and a billion dollar valuation clubhouses content is like a series of audio only presentations and panel discussions he s. That's right audio. We'll get to that in a minute. These talks happen in so-called rooms which are really like well conference calls there's a presenter or panel other people are listening to anyone can raise a hand and ask a question or participate in the discussion. You can meet people and have conversations and because presentations are not supposed to be recorded by users. You're either there or you missed out the thing about clubhouse though is that it appears to do everything wrong. First of all as i said earlier. It's audio based that's right. Viral video challenges or memes. Not even a cute cat photo. That means that all of those people who hate to use the phone have to logon and have an actual conversation also android users. Sorry you're out of luck. This app is for apple devices. Only at least for now finally membership is by invitation. So unless you know someone who's willing to fork over one of their coveted invites you're locked out again for now. Clubhouse founders say that eventually the format will be open to all but what is that for now. Exclusivity is what's driving growth in roughly nine months. Fomo fear of missing out has fueled the apps popularity some even say that the old school style of having conversations is the key to its success. You have to listen and be able to say something meaningful. So people are striking business deals finding content partnerships and having conversations with some truly interesting people. Some are even finding romance on the app. According to a report in forbes clubhouses his popularity is even turned the head of industry giant facebook. Which has reportedly started developing an audio product to compete with clubhouse the new york times reports facebook founder mark zuckerberg made an appearance on the app earlier this month to give a talk about augmented and virtual reality. Facebook didn't confirm the report but the times also noted that the social network has a habit of buying upper competing with apps that dabble in areas. That could pose a threat to its user base like most media platforms clubhouse. Has its issues to the app. Urges you to give it access your contact list and uses that information to identify others for you to invite according to forbes quote even if you've no interest in joining clubhouse whatsoever the service may well know your name mobile number and how many friends you have on the network. It may even be violating european privacy laws. The report suggests clubhouses apple exclusivity also has some trying to hack the app so it can be streamed on android devices tech crunch report last week. Clubhouse had its first significant data-breach when someone managed to stream audio feeds on a third party website according to bloomberg the stanford internet observatory or s. I o a stanford university internet watchdog programme race security concerns earlier this month in light of these issues clubhouse says it has taken measures to prevent any such breaches from happening again. But it's not clear. Exactly what is being done.

Coming up next