Snapchat is clearly in the entertainment category, competing for eyeballs, where the value they add over the next best option is small compared to the rewards t

Snapchat is clearly in the entertainment category, competing for eyeballs, where the value they add over the next best option is small compared to the rewards they get for being able to advertise to those eyeballs. This is a problem with most of capitalism but is much more pronounced in ad supported models since there's no way for a slightly inferior product to get an edge by being slightly cheaper.