Just a year old, Clubhouse has become a social phenomenon, attracting celebrities, plenty of controversy and a $1 billion valuation. The audio-only app allows users to "drop in" on ongoing conversations, interviews and discussions focused on topics ranging from business ventures to theatre performances. Much of Clubhouse’s success has been attributed to its celebrity users like Elon Musk and Oprah Winfrey. The invite-only app offers the experience of tuning into a podcast, but the conversation is live, interactive—and far more exclusive.
How does it work?
The Clubhouse experience falls somewhere between talkback radio and professional conference calls. Users can tailor their experience by selecting topics of interest, like technology, health, comedy or business. You can then hop in and out of designated conversation "rooms" and engage in live debates and lectures by virtually "raising your hand" and asking a question. While many participants just use the app to speak to their friends, you could also catch Bill Gates or Kanye West casually chatting if you find yourself in a room with them.
Then just like a phone call, once the conversation is over the room is closed. If you miss a session, it’s gone forever. All conversations are live and generally non-recordable, leading some to dub the app a “FOMO machine.”
Who can use the app?
Clubhouse is currently still in "beta stage," which means that it is not widely available to the public. It is invite-only and exclusive to iOS, Apple's operating system. Existing users can invite others to create an account but they only have two available invites at first. Clubhouse's founders, entrepreneur Paul Davison and former Google engineer Rohan Seth have said that the app's exclusivity means the company can test features and grow slowly with stability and safety. The company has not set a date for general public availability but in a recent blog post the creators have announced that their 2021 goal is to “open up Clubhouse to the whole world.” In an interview with Bill Gates, Davison said that adding Android functionality is their top priority.
What are its problems?
Much like podcasts, Clubhouse is largely unregulated, with only room hosts and moderators controlling the conversation. Although the app strongly discourages any discrimination and aggressive behaviour, the lack of official moderation has led to criticism. Its restriction on recording has been seen as a double-edged sword: it helps users maintain a level of privacy, but also allows fake news to slip by without challenge or consequence. While all social media platforms are confronted with regulation difficulties, live audio presents a particular challenge unlike its visual and text-based competitors Instagram and Twitter.
Does it have competitors?
Clubhouse was banned in China after conversations on democracy and the government’s systematic detention of Uighur Muslims—which the UK is considering officially ruling a genocide—appeared on the app. Since then, apps have emerged within China to take advantage of the rise in audio social networks. Technology giants such as Alibaba Group and Tencent Holdings have begun to test audio-only chats on their platforms. With no unique technical tricks, Clubhouse leaves a fairly simple blueprint for competitors to copy. Twitter has already responded with its own version of rooms, called "spaces," and Facebook is said to be working on a competitor.
Will it be the next big thing?
After a year of Zoom and Microsoft Teams, users have found audio-only socialising a refreshing change. Elon Musk summed up Clubhouse’s appeal during his chat with Robinhood CEO, Vladimir Teneve, saying that “context switching is a mind killer.” Unlike the scattered—and often overwhelming—experience of the infinite scroll, when users log into Clubhouse, they can focus on one topic at a time. Fans of the app also enjoy the intimate access to public figures and industry leaders not available on any other platform.
In February, Musk’s audio-chat with Robinhood’s Tenev saw Clubhouse's profile skyrocket and sparked a scramble for invitations. Inevitably, the hype was followed by money. Clubhouse is now valued at over $1 billion, a considerable amount for an app that has yet to generate any revenue. Reuters say that demand for membership is now so high that a market has grown for them on Reddit, eBay and Alibaba’s second-hand marketplace Idle Fish.
However, with only two million users, no subscription loyalty and competitors closing in, staying afloat could be a challenge for the app. Beyond the realm of social media, Clubhouse considers itself an alternative to in-person conferences, parties and other events. While this seems justifiable now, some have wondered how Clubhouse will fare in a post-vaccinated world. Once traditional networking and entertainment returns, will people still be as willing to dial in from home?
