Periscope was a mobile app that enabled users to broadcast live video to the world, offering real-time exploration through others' eyes. Launched in 2014 and acquired by Twitter in 2015, it saw initial popularity but faced declining usage and rising costs, leading to its shutdown in March 2021.
What was Periscope
Periscope's main product was a live video streaming platform for Android and iOS, enabling real-time interaction and engagement. Its unique value proposition was the ease of broadcasting live video from mobile devices. Notable achievements include its acquisition by Twitter in 2015 and raising $1.5M in funding.
Reasons behind Periscope's Failure
Unsustainable Maintenance Costs The Periscope app has been in an unsustainable maintenance-mode state for a while. The cost to support the app was increasing, making it difficult to justify its continued operation. This financial strain was a significant factor in the decision to discontinue the app.
Declining User Engagement Over the past couple of years, Periscope experienced a decline in user engagement. This decrease in active users made it challenging to maintain a vibrant community and justify the resources needed to keep the app running effectively.
Reprioritization Due to 2020 Events The events of 2020 led to the reprioritization of various projects within the company. This shift in focus delayed the decision to discontinue Periscope, but ultimately, it became clear that the app could no longer be sustained in its current form.
Impact on Investors and Market
Periscope's failure impacted its investors by necessitating a strategic reallocation of resources within Twitter, potentially leading to more efficient use of company assets. The market reaction was muted, focusing instead on the future of live video on Twitter, as detailed in the farewell announcement.
Lessons Learned from Periscope's Failure
Monitor User Engagement: Regularly track user activity to identify trends and address declining engagement before it becomes a critical issue.
Manage Costs Effectively: Keep operational costs in check to ensure the sustainability of the app, especially during periods of low revenue.
Adapt to Market Changes: Stay agile and ready to pivot based on market demands and external events to maintain relevance.
Prioritize Core Projects: Focus on projects that align with your company's long-term vision and goals, avoiding distractions from less impactful initiatives.
Foster a Strong Community: Build and maintain a vibrant user community to enhance engagement and loyalty, which are crucial for long-term success.
Frequently Asked Questions about Periscope
What were the main features of Periscope?
Periscope offered live video broadcasting, sharing to Twitter, replays, Super Hearts, and the ability to download broadcast archives.
Why did Periscope shut down?
Periscope shut down due to unsustainable maintenance costs, declining usage, and a shift to integrate its features into Twitter.
When did Periscope officially discontinue its service?
Periscope officially discontinued its service in March 2021.
Looking Ahead
As we reflect on Periscope's journey, it's crucial for startup founders to learn from its challenges. Consider how Sunset can help you avoid similar pitfalls, ensuring a smooth transition to your next venture.
