The service first debuted in February this year, with a few novel features like offering up simultaneous multiple streams (though competitors quickly followed). Nonetheless, live video isn’t cheap – especially when you’re on the scale of a company like Yahoo. After persistent rumors that it would enter the live video space, Google said that it would not be adding the feature to YouTube anytime soon because of the huge bandwidth costs that would ensue. And Google is in a much better financial position than Yahoo at the moment.
So, while the shutdown of Live could be viewed as a Yahoo problem – the company is in the midst of layoffs with its stock trading near multi-year lows – there has to be some concern over the implications it has for live streaming on the whole. While some of the startups in the space have shown decent traffic growth over the past year, if Yahoo wasn’t able to attract a big enough audience to make it work, you have to wonder if the other, considerably smaller companies pursuing the niche will find enough users to make a real business of it.