Two years after the launch of Live.ly, Musical.ly is shutting down the app. The live streaming platform, which allowed content creators to make money off of streaming through donations from fans, is being integrated into Musical.ly’s main app. Musical.ly will merge Live.ly’s features into its primary app, which has 50 million monthly active users, according to the company.
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This is the first big change by the company, since it was acquired last year by Tencent, a Chinese holding company, in a deal valued at around $800 million. Since being acquired lip syncing app has placed a greater focus on its creator community. In December, the company announced the launch of a “Creator Fund” that will provide training, development, educational grants, virtual workshops, and enrichment through scholarships. Musical.ly co-founder Alex Zhu hopes that eventually, with the help of this program, creators will be able to make a living off the platform.
As Musical.ly increases its efforts in the creator department, competitors like Facebook are moving in on the company’s territory with new lip syncing features. Facebook announced this month that it plans to test out a new live lip syncing feature dubbed “Lip Sync Live.” The lip sync feature is currently being tested in select markets with plans to roll out more broadly in the coming months.
“We’re exploring more ways to bring music to Facebook. In the coming months, we’ll start testing options for adding the music you love to Facebook Stories,” Tamara Hrivnak, Head of Music Business Development & Partnerships, wrote in the blog post. “We’re looking forward to continuing to work with the music industry to create new ways for people to connect and express themselves through music across our family of apps.”