Tech

Houseparty adds Heads Up in a new push into gaming and revenue

The group video chat Houseparty has carved out a niche among a segment of young people who use it to hang out virtually, is making its first effort to generate revenue. The company said today that Heads Up, the popular mobile game, will now be available inside Houseparty’s mobile app. Users will be able to play the game, which has one player guessing a word that only the other players can see, for free. But some “packs” of words will cost $0.99 or more, with revenue split between Houseparty and Heads Up.

Houseparty’s push into gaming represents an experiment in building a different kind of social network one that makes its money by selling services rather than advertisements.

“We’re really starting to think about ways we can make money by bringing value to our users, not extracting value from them,” said Sima Sistani, Houseparty’s co-founder

     

Heads Up is the first of several games Houseparty plans to bring to the app, she said. The company hopes to profit by selling products that enhance the time people spend together in the app.Houseparty already sees people using the app while playing Fortnite, watching Netflix, or even shopping, she said. They also use it to play card games such as Apples to Apples or Cards Against Humanity.

Heads Up, which offers a modern spin on charades, has been a top-grossing app since it was introduced in 2013. In 2016, Forbes reported that it had been purchased more than 25 million times. The app benefits from regular promotion on Ellen DeGeneres’ popular daytime talk show, where she plays the game with her celebrity guests

While the app is small by social network standards a typical user has just 23 friends on the app its users are unusually engaged. The average Houseparty user has the app open for 60 minutes a day, the company said. That’s a lot of time hanging out and a lot of time to sell users additional services. If it’s successful, it could challenge the conventional wisdom that social networks are best monetized through advertising or, at the very least, offer a workable alternative.

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