Musical.ly has begun redirecting customers of its Stay.ly app, which it decided to kill off last month, to a competing app known as LiveMe. Present Stay.ly customers are being pointed to LiveMe via an in-app message, it says. Whereas it’s a reasonably frequent trade follow for corporations to direct customers to comparable apps or companies when a product of theirs is being sunsetted, on this case, Musical.ly’s determination to shut down Stay.ly and ship customers to LiveMe was really a contractually obligated a part of Musical.ly’s practically $1 billion acquisition by Chinese language know-how firm Bytedance final 12 months.
A clause in Bytedance’s settlement to amass Musical.ly said that, if the deal went via, Musical.ly must shut Stay.ly inside six months, in accordance with a supply with data of the deal.
The settlement additionally mentioned that Stay.ly must level customers to LiveMe for not less than 30 days following its closure, we discovered, when verifying the knowledge.
The difficulty at hand was a competing funding – proper across the time of the Musical.ly acquisition, Bytedance had additionally put $50 million into the live-streaming app LiveMe. Apparently, it didn’t wish to function two rival properties.
Clearly, this request was not a deal-breaker for Musical.ly – the truth is, it’s integrating Stay.ly’s function set into its personal app. Meaning it’s going to nonetheless be one thing of a competitor to LiveMe, although now now not a direct one. Musical.ly’s most important app, in spite of everything, isn’t identified right this moment for its dwell streaming, however somewhat for lip syncing movies which can be recorded and edited utilizing the app’s included visible results and modifying instruments.
As well as, Stay.ly had not been in a position to appeal to the viewership numbers that Musical.ly had. The corporate mentioned, when confirming Stay.ly’s closure final month, nearly all of dwell stream views had been happening in Musical.ly itself, not in its spinoff.
That mentioned, Stay.ly had a good variety of customers. Although nowhere close to as huge as Musical.ly’s 200+ million registered customers or 60 million actives, its dwell stream app had 26 million installs, round 70 p.c within the U.S., in accordance with Sensor Tower’s information.
However LiveMe is greater – it has greater than 60 million customers and has paid out over $30 million to its broadcasters via its direct digital gifting program, the corporate claims.
LiveMe can be not the one app operated by the corporate. Different LiveMe portfolio apps embrace the social brief video app Cheez, and cell gaming and esports dwell streaming app Fluxr. So far, it has raised a complete of $110 million.
Stay.ly isn’t solely redirecting customers to LiveMe, nevertheless. In its personal announcement concerning the information right this moment, it exhibits a screenshot that’s pointing Stay.ly customers to Twitter’s Periscope, as an example. The message additionally notes that the Stay.ly area identify is on the market, and offers an e-mail for gross sales inquiries.
Musical.ly hasn’t but responded to a request for remark.