It’s all over for Meerkat: Video streaming of news and events via social media is NOT the way to engage customers

After a $12 million round of funding at outset, and a year and a half on the market, it’s all over for Meerkat, demonstrating that ancillary apps for streaming live news and content to retail customers is not always profitable

Recently, many of those who study the future requirements of customers in retail FX had pinned their hopes on the latest generation of young people to have reached independent adulthood.

These ‘Millennials’ have begun to be the focus of the research and marketing departments of many firms, as they are young and may potentially begin to look toward alternative and lucrative investment strategies such as retail FX and multi-asset trading via retail platforms, with the conclusion being that such a demographic, having been born into a technological age, will require innovative and advanced ancillary services in addition to their trading platforms in order to engage and educate on a real time basis.

Just last month, FinanceFeeds explained in detail why angling services toward Millennials is expensive and fruitless, concluding that 26% of 18 to 30 year olds do not save or invest anything at all, with 62% admitting that they are clueless about financial matters, whereas the age range between 30 and 45 are investment savvy whilst being a lot less interested in gimmicky add-ons which cost a fortune to develop and do not ultimately regain the capital outlay in customer volume.

This week we are beginning to see the proof of this in the cold, harsh reality as Meerkat, a service that was launched only a year and a half ago and allowed firms to stream live video and “Tweet” (via Twitter) their customers has bitten the dust.

From a trading perspective, Meerkat appeared to be a great fit indeed. Before its launch, broadcasting live events wasn’t easy. There is a great importance with regard to the ability to broadcast in real time, and Meerkat opened up new avenues for user-generated news analysts and marketers. The fact that BBC jumped on the bandwagon by “Meerkasting” (the official term) updates on the Ferguson protests and vigil, was a sign of the app’s journalistic power – ideal for savvy Millennials to get absolutely minute-precise market information.

This information could be streamed directly to mobile devices, matching the expectation of engagement and interaction that marketers understand Millennials to expect, however this still was not enough for Meerkat.

On Friday, Meerkat bit the dust.

It was removed from the iOS AppStore with CEO Ben Rubin having broken the news saying it was a ‘bittersweet’ moment.

The company which owns Meerkat will now completely discontinue Meerkat, and focus on a new platform called Houseparty which is designed to facilitate hangouts in private instead of public. This has amassed 1 million new users, yet again testifying that the vast majority of the younger social media-orentated and multimedia-interested generation of Millennials are more interested in facilitating events and showcasing themselves and their prowess whether commercial or social than they are in aggregating news and company information for the purposes of trading.

Life On Air, the company that owns Meerkat had a $12 million venture capital round to fund its development and launch, yet it still only lasted a year and a half, proving that investment in mobile-first engagement gimmicks is not always the way to attract and maintain customers – or at least customers that will generate profitable business without requiring such high costs.

Twitter cut off access to Meerkat’s social graph shortly thereafter, making it more difficult to build out a list of friends on Meerkat, before launching its own live-streaming competitor called Periscope. Facebook too joined the game last year and has since poured immense resources into its live video efforts, yet again showing that live video streaming is of social interest to younger people, and not commercial interest.

Read this next

Metaverse Gaming NFT

Astar Network’s ad features 329 top brands to support Web3 in Japan

Blockchain innovation hub Astar Network is making strides in promoting the Web3 adoption worldwide. In yet another milestone, the smart contracts platform has run a national newspaper ad in Japan that set a new global record with participation from 329 blue-chip firms.

Digital Assets

Pyth Network welcomes onchain data from crypto market maker Auros

“By sharing our high-frequency trading data with a truly onchain decentralized network, we aim to foster innovation that will lead to better financial solutions for all participants.”

Digital Assets

Tokeny integrates Ownera to boost liquidity of tokenized assets

“The adoption of FinP2P will result in higher liquidity and better access to capital and assets by providing regulated firms with one secure point of connection to multiple digital asset networks across the globe.”

Digital Assets

BingX launches subsidy vouchers to cover user losses in copy trading

“With the introduction of copy trade subsidy vouchers, new users can easily try out trading strategies without incurring losses.”

Digital Assets

Talos expands sales team: Frank van Zegveld, Matt Houston, Hillary Conley

“The extensive leadership and industry expertise of these new hires will enable us to build long-lasting relationships as we continue to build out our global presence in EMEA and beyond.”

Executive Moves

FX and CFD broker Emporium Capital hires industry veteran Robert Woolfe as COO

His past experience within the FX and CFD industry includes top roles at Capital Index, London Capital Group, GKFX, ETX Capital, and IG.  “I’m delighted to be part of the Emporium Capital team and spearheading the brokerages global expansion plans”, he said about the appointment.

Retail FX

Hantec Markets wins six categories at Global Retail Forex Awards 2022

Hantec Markets has recently rebranded with a new website and a renewed growth strategy that features the #TimeToStrike hashtag to signify a time of renewed growth for the broker.

Industry News

Nexo sued for operating crypto brokerage without license and lying about it

“Nexo violated the law and investors’ trust by falsely claiming that it is a licensed and registered platform. Nexo must stop its unlawful operations and take necessary action to protect its investors.”

Industry News

Apex Group launches EU Taxonomy Solution as part of ESG offering

“Enabling our in-scope clients to demonstrate alignment with the EU Taxonomy is only the beginning – with over twenty green taxonomies in place, in development or under discussion worldwide it is crucial that investors act to understand and report taxonomy alignment data sooner, rather than later.”

<