After creating the concept of live streaming from a cell phone to a social media network, Meerkat should be at the top of the live stream market. Unfortunately, with Facebook and Twitter recently jumping on the live streaming concept, Meerkat has become less appealing to users. Many people just don’t see the point of adding an additional social media network to live stream from.
After being heralded as the next big thing last summer, Meerkat took some serious hits to their competitive edge. Just because they were the first on the scene of live streaming, did not mean that they were able to maintain their edge when it came to competing with other streaming companies. Once Twitter purchased Periscope and turned this into their own live streaming application, Meerkat started to see problems in their own growth. Now with Facebook’s newly launched live streaming tool, they’re ready to give up on the idea of becoming a leading live streaming network.
The problem that Meerkat is currently experiencing is that their market has been flooded by products that are better and more convenient to customers. Rather than trying to continue to compete with Facebook and Twitter, the company has decided to shift their focus. The company recently announced that they will be changing their focus with the idea of making their social media network more private. They are hinting at the idea of live streaming toward more select groups of people such as friends and family members.
Businesses should pay close attention to the way that Meerkat is changing its focus as it relates to niche selection. Originally, the company was focused on a unique niche with no competition. Now as the market has been flooded to the point where they cannot compete, they have decided to further narrow their niche in an attempt to gain a unique audience. In many cases, narrowing a niche can be just what a business needs to succeed when they find that a larger niche is flooded with challenging competitors.