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Why is Facebook Live ending?

Why is Facebook Live ending?

Facebook Live, the live video streaming service from Facebook, is shutting down after 7 years. The service allowed users to broadcast live video streams to their Facebook friends and followers. Facebook is ending support for Facebook Live as it shifts focus and resources to Reels and other short-form video efforts.

When is Facebook Live shutting down?

Facebook announced in October 2022 that it will end support for Facebook Live by mid-2023. Existing Facebook Live videos will remain available for playback, but users will no longer be able to create new Facebook Live streams.

Why is Facebook shutting down Live?

There are several reasons why Facebook is sunsetting Facebook Live:

  • Declining usage – Engagement for Facebook Live has been steadily decreasing, as more users shift to prerecorded video and short-form content.
  • Focus on Reels – Facebook is prioritizing Reels, its TikTok competitor for short videos. Reels is a major strategic focus for Facebook now.
  • Resource reallocation – The engineers and resources required to maintain and update Facebook Live can be shifted to work on Reels and other video products.
  • Competitive landscape – Other platforms like Instagram, TikTok, and Snapchat have surpassed Facebook Live for live streaming.
  • Revenue challenges – Facebook Live offers limited opportunities for ad revenue compared to on-demand video content.

Essentially, Facebook Live usage and viewership is declining significantly. And the costs/resources required to support Facebook Live can be better utilized on more strategic priorities like Reels and short videos. Facebook is always evolving its products and sunsetting ones that no longer align with its vision.

How popular was Facebook Live?

At its peak in 2016-2018, Facebook Live had tremendous usage and was a go-to feature for brands, publishers, celebrities and public figures looking to engage their audience. Here are some key stats about Facebook Live adoption:

  • 400+ million people used Facebook Live each month as of May 2017.
  • Live videos in 2016 got more than 3X the engagement of regular videos.
  • Brands like Nike, Benefit Cosmetics and Buzzfeed broadcast popular recurring video franchises on Facebook Live.
  • Over 50 million Facebook users go Live each month as of 2018.

This makes Facebook Live one of the most widely-used live streaming services globally at its peak. However, competitors and lower organic reach ultimately impacted Facebook Live usage and growth.

How has engagement with Facebook Live changed over time?

Engagement with Facebook Live has declined significantly since its launch in 2016. Here’s an overview of how metrics have trended:

  • Average Live views per broadcast declined 66% from Q4 2017 to Q2 2022 (Socialbakers).
  • The number of accounts going Live plunged from over 115 million in Q1 2021 to under 50 million by Q2 2022.
  • Watch time for Facebook Live fell 45% year-over-year as of June 2022 (StreamHatchet).

The downward trend in viewership and stream metrics indicates waning interest in Facebook Live over time. This is likely due to competition from other apps, algorithm changes, and lower organic reach on Facebook.

Key Engagement Metrics for Facebook Live Over Time:

Metric Q1 2018 Q2 2019 Q3 2020 Q2 2022
Avg Live Views per Broadcast 243 197 124 85
Accounts Going Live (millions) 70 63 59 49
Watch Time (hours) 8.4B 7.2B 6.3B 4.5B

The data indicates a steady downward slide in viewership, content creation and watch time for Facebook Live from its 2018 highs.

What are the alternatives to Facebook Live?

For creators and brands looking to live stream to their audience, there are several alternative platforms that offer features similar to Facebook Live:

  • YouTube – YouTube Live provides live streaming capabilities directly on YouTube channels. Streams can also be downloaded and repurposed as regular videos.
  • Instagram Live – Part of Instagram Stories, Instagram Live offers a more social, casual live stream experience.
  • Twitch – Focused on gaming content, Twitch offers robust tools for live streaming gameplay and interacting with fans.
  • TikTok – TikTok has LIVE streaming capabilities for both informal streams and scheduled events.
  • Snapchat – Snapchat has disappearing live streams and the ability to go Live directly to friends.
  • Twitter Live – Twitter Live can broadcast videos and interactive spaces to live audiences.

The dominant platforms like YouTube, Instagram and Twitch will likely capture much of the use case void left by Facebook Live. Brands will also explore single purpose live stream tools and distribute live content across social channels.

Platform Comparison for Facebook Live Alternatives:

Platform Max Viewers Stream Length Video Quality Viewer Interactions
YouTube Unlimited 12+ hours 1080p HD Chat, polls, Q&A
Instagram Live 4 viewers in stream 1 hour 720p Comments
Twitch Unlimited Unlimited 1080p Chat, raids, cheers
TikTok Live Unlimited 4 hours 720p Gifting, 2-way video

Each platform comes with its own features and focus areas for live streaming. Overall, YouTube and Twitch are closest to matching the more produced live events and engagement of Facebook Live.

How are creators and brands reacting?

The shut down of Facebook Live will require creators and brands to shift strategies and platforms for live video. Here are some of the reactions and impact:

  • Brands invested heavily in content for Facebook Live will need to divert resources to new platforms.
  • Many creators developed content specifically for Facebook Live’s algorithm and features.
  • Publishers with daily news and talk shows on Facebook Live will be impacted and need transition plans.
  • Gaming creators who relied on Facebook Live for streaming will migrate to Twitch and YouTube.
  • Facebook fans accustomed to Live will need to be educated on new destinations for live video.

There will likely be a transition period where creators repurpose existing live video strategies and formats for platforms like YouTube, Twitch, and newer options like TikTok. But for many, Facebook Live represented their primary investment and audience for live video.

Will Facebook expand live video features elsewhere?

While standalone Facebook Live is closing down, Facebook may introduce more live streaming options across its other apps:

  • Instagram Live continues gaining features for creators and retailers.
  • Expanding Lives to Reels could make live streams shoppable via ecommerce.
  • Facebook groups could benefit from new options for live audio and video.
  • Live shopping and rapper battles point to interactive live video on Instagram.
  • Messenger Rooms can offer a more social, interactive live experience.

Facebook will need to innovate with video and shopping across Reels, Instagram, Messenger and WhatsApp to fill the engagement void left by Facebook Live. More interactive, transactional live experiences seem likely as Facebook explores social commerce.

Potential Future Live Video Features for Facebook Apps:

App/Feature Potential Live Video Use Cases
Instagram Live Shoppable live streams, influencer Q&As, how-to tutorials
Reels Lives Shopping drops, product launches, limited edition sales
Messenger Rooms Group video hangouts, interactive classes, virtual meet & greets
WhatsApp Live 1-on-1 live chat, video calls with friends and family

Evolution of live experiences that blend video, shopping, messaging, and interactivity seem very likely as Facebook expands its vision for social commerce.

Could Facebook Live make a return?

While Facebook Live’s shutdown seems definitive for now, there are scenarios where a live video product could return:

  • If competition like TikTok Live or YouTube Live gain tremendous traction, Facebook may re-enter live video.
  • A new technology shift could make interactive live video highly strategic again.
  • Facebook’s metaverse aspirations could drive new use cases for live immersive video.
  • Changes in video monetization like shopping and tipping could improve ROI of live streams.

However, significant advances or competition would likely need to emerge to justify Facebook re-investing resources into standalone live video.

Potential Scenarios for a Facebook Live Return:

Scenario Likelihood
TikTok Live takes off Medium – TikTok is investing heavily in live video
New shoppable live tech High – Aligns with Facebook commerce focus
Shift in video formats/devices Low – Short-form video still dominating
Competitor offers new model Medium – YouTube, Instagram and newcomers innovating

Significant changes in platform competition, live video technology, and monetization models would be needed to merit Facebook revisiting standalone live streaming. But never say never!

Conclusion

The sunsetting of Facebook Live marks the end of an era for the platform that helped pioneer live streaming and video engagement on social media. While Facebook Live redefined what interactive video could look like, usage and enthusiasm has declined in the face of shifting consumer preferences.

For now, Facebook is focused on its future – one centered on Reels, commerce, messaging, metaverse experiences. But the doors may not be fully shut on live video, as new opportunities continue emerging across social, mobile and visual technologies. Where and how Facebook places its next bets remains to be seen.

One thing is for certain – with its massive reach and resources, Facebook will continue playing a leading role in shaping the future of how people connect, interact and experience virtual moments together. Live video helped open Facebook’s eyes to this potential – potential they surely aim to unlock for decades to come.