Viddy is one of many apps that have recently seen a huge growth surge thanks to smart integration with the Facebook timeline. The company was
coasting along at around five million monthly active users through Facebook until they relaunched their app. With the timeline integration, they more than doubled that number in the last two weeks.
It's not clear that Viddy is a direct competitor to Facebook in the way that Instagram was. Photo sharing is Facebook's big feature and mobile was the area it was most concerned about leading into its IPO.
User generated video, on the other hand, is a market that has never really produced a profit. Youtube, despite its enormous size, is increasingly focused on producing professional content in the hopes of turning a profit.