Meerkat Moves from Live Video Streaming to Video Social Network

The live-streaming app that took the South-by-Southwest (SXSW) conference by storm last year, Meerkat, is abandoning its business model, thanks to pressure from the likes of Facebook and Periscope. Instead, the company?EU?s CEO said it has started work on a new social networking app that uses live video broadcasting.

The company hasn?EU?t provided much detail about the new app or why it might be better than its existing product. All that management is saying for the moment is that the new service will be much more focused on live video between participants who know each other outside the platform, rather than broadcasting to unknown audiences.

Facebook and Twitter Jump In

Meerkat made a splash at last year?EU?s South-by-Southwest as a way for users to easily host and set up live video streams from their smartphones. The app was a hit at the festival, with attendees using it to broadcast their experiences to their followers.

However, established social media players like Facebook and Twitter quickly saw the opportunity Meerkat presented, and decided to jump into the sector as well. Twitter soon announced its own video streaming app, Periscope, while Facebook introduced Facebook Live to its mobile app, allowing users to post live video from their mobile devices directly to their news feeds.

?EU?The year started on a high note with the rapid explosion of live video, the excitement of SXSW, and the launch of Twitter?EU?s Periscope,?EU? Ben Rubin, Meerkcat?EU?s CEO, wrote in a recent memo to investors. ?EU?But over the year, it became rougher waters.?EU?

Rubin said that the distribution advantages held by Twitter and Facebook Live drew more users to their platforms, and away from Meerkat, blocking the company?EU?s ability to grow as rapidly as it had planned.

Market Is too Small

Nevertheless, Rubin noted that Meerkat developed several proprietary tools over the last...

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