Periscope was a mobile app launched in 2014 that allowed users to broadcast live video to a global audience. Acquired by Twitter in 2015, it quickly gained popularity but faced declining usage and rising costs, leading to its shutdown in March 2021. Many of its features were integrated into Twitter.
What Was Periscope?
Periscope's main product was a mobile app for live video streaming, allowing users to broadcast real-time experiences globally. Its unique value proposition lay in enabling viewers to explore the world through others' eyes, fostering immediate, interactive connections. Notably, it was acquired by Twitter in 2015 and hosted significant live events, including NASA broadcasts.
What Happened to Periscope?
The story of Periscope is one of rapid ascent followed by a gradual decline, marked by several key phases:
Initial Launch and Rapid Adoption: Periscope quickly gained traction after its launch in 2014, attracting a large user base eager to explore live video streaming. The app's acquisition by Twitter in 2015 further boosted its visibility and user engagement.
Unique Features and User Experience: Periscope's ability to broadcast real-time experiences globally set it apart from competitors. The app allowed viewers to interact with broadcasters through comments and hearts, creating a dynamic and engaging user experience.
Declining Usage and Rising Costs: Over time, Periscope faced declining user engagement, which led to an "unsustainable maintenance-mode state." The costs associated with maintaining the app continued to rise, making it increasingly difficult to justify its operation.
Integration into Twitter: As Periscope's standalone app struggled, many of its core features were integrated into Twitter. This move aimed to consolidate live streaming capabilities within Twitter's platform, leveraging its larger user base.
Eventual Shutdown: By March 2021, Periscope was removed from app stores, and new account creation was halted. The decision to discontinue the app was influenced by declining usage and the need to prioritize other projects, especially in light of the events of 2020.
When Did Periscope Shut Down?
Periscope officially shut down in March 2021. The decision to discontinue the app was influenced by its unsustainable maintenance mode, characterized by declining usage and rising costs, as detailed in a farewell announcement from the Periscope team.
Why Did Periscope Shut Down?
Unsustainable Maintenance Mode: Periscope had been in an unsustainable maintenance-mode state for a while, making it difficult to justify its continued operation. The app required significant resources to maintain, and the team acknowledged that it was no longer feasible to keep it running in its current state.
Declining User Engagement: Over the past couple of years, Periscope experienced a noticeable decline in user engagement. This drop in active users made it challenging to sustain a vibrant community, ultimately contributing to the decision to shut down the app.
Rising Operational Costs: The costs associated with supporting Periscope continued to rise over time. As the app's user base dwindled, the financial burden of maintaining the platform became increasingly untenable, leading to its eventual discontinuation.
Reprioritization Due to 2020 Events: The events of 2020 led to a reprioritization of projects within the company. This shift in focus delayed the decision to shut down Periscope, as other initiatives took precedence during a tumultuous year.
Lessons Learned from Periscope's Failure
Adapt to Changing User Needs: Continuously evolve your product to meet user expectations and stay relevant in a dynamic market.
Monitor Engagement Metrics: Regularly track user engagement to identify trends and address declining activity promptly.
Manage Operational Costs: Keep a close eye on costs to ensure the financial sustainability of your platform.
Integrate Seamlessly: Consider integrating features into larger platforms to leverage existing user bases and enhance visibility.
Prioritize Core Projects: Focus on key initiatives, especially during challenging times, to maintain strategic alignment and resource allocation.
Stay Agile: Be prepared to pivot or discontinue projects that no longer align with your business goals or market demands.
We Shut Down Startups
Periscope's journey underscores the complexities of winding down a startup, from managing declining user engagement to handling rising operational costs. If you're facing similar challenges, book a demo with Sunset to see how we can help.
Sunset takes care of all the legal, tax, and operational burdens, allowing you to avoid penalties and reduce liabilities. Let us handle the tough parts so you can move on to your next venture with ease.
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