Another streaming platform, Caffeine, has unfortunately shut down after raising nearly $300 million from companies like Fox, Disney, Cox, Andreessen Horowitz, and Greylock. The decision to end the service on June 26th was made due to the company not being profitable yet. Despite this, Caffeine expressed gratitude to all involved and stated that they have had a significant impact on the industry and will continue to do so in the future in a different capacity.
Caffeine was launched in 2016 as an alternative to Twitch, with a focus on esports, video games, and live events. Major investments were made by 21st Century Fox in 2018 and 2020, along with Cox and Disney. The company had also participated in the 2018 Disney Accelerator Program. In recent years, Caffeine had shifted its focus to niche sports leagues, live event organizers, and sports creators, with a streaming deal with LIV Golf announced back in February.
Despite claiming to have over 60 million monthly active users and partnerships with over 150 niche sports leagues, competitive event organizers, content creators, and sports media publishers, Caffeine has had to close its doors. The decision to end the service comes as the company seeks to figure out its next steps and a new direction in the industry. The impact of Caffeine shutting down will be felt across the streaming platform space.