What Was VyRT, Jared Leto’s Livestreaming Service?

What was VyRT?

Over a decade ago, in the early 2010s, musician and actor Jared Leto wanted to change traditional ad-supported streaming for live events. He created VyRT as an independent live event global streaming platform designed by and for artists. Its goal was to fill a market gap for a reliable online streaming platform that didn’t require advertising or corporate sponsors.

Leto’s VyRT platform promised viewers the “best online concert experience” and a great live webcast experience for artists through a new web streaming service. 

The idea for VyRT came from the frustrating experiences Leto and his band, 30 Seconds to Mars, faced when streaming past live events. “Our experience with livestreaming anything has been pretty horrible,” Leto said at the time. “We had to put up with advertising and sponsorship that wasn’t really in line with who we are, so we decided to start our own company.” 

The 30 Seconds to Mars frontman launched VyRT’s beta version in 2011. However, the VyRT streaming platform was shuttered in less than a decade. All that remains of the promised industry-disrupting streaming platform is one web page redirecting fans to the band’s official website.

Why did VyRT fail?

The demand for a reliable, high-quality live event streaming platform was evident in 2011. However, VyRT did not have a consistent pipeline of content, users, or revenue when it launched. In addition to the lack of stable ongoing funding, Leto’s VyRT expanded too quickly to include an online shopping platform for artists’ merchandise and a live chat function for consumers and artists. 

Here are two primary reasons the venture failed: 

1. VyRT faced external challenges from the competition.

The concept and demand for livestreaming exploded online in the 2010s. Leto’s desire to solve the livestreaming event experience from an artist’s POV made for an engaging media story. However, VyRT faced fierce and experienced competition in the online tech world. 

YouTube, Twitch, Facebook, Twitter, and countless more niche streaming platforms grew from the seeds of monetized online communities with never-ending – and free – user-generated content. The VyRT model didn’t have the content strategy, industry experience, or startup funding to enter, improve, and disrupt the industry giants.

2. VyRT expanded its services too quickly. 

Leto envisioned VyRT as a livestreaming platform designed for enjoying premium HD content. However, the venture soon expanded its offerings to provide a full-service fan experience. 

After its beta announcement, VyRT added technology to provide real-time chats with performers and other viewers, along with the ability to purchase merchandise directly on the viewing page. Point-of-sale (POS) shopping and real-time chat functions added to the costs needed to keep VyRT afloat. However, these added offerings didn’t provide the profit infusion necessary to reinvest and keep the fledgling startup running.

Lessons to learn from VyRT

Small business owners can learn from VyRT’s downfall and avoid the venture’s mistakes by using their critical thinking skills to assess challenges, and analyze both the ROI of entering a particular market and the existing competition.

Consider the following lessons to learn from VyRT:

• Have clarity of purpose and services. Be clear with yourself and your customers about the problems your business aims to solve – and what’s outside its scope. VyRT was in business to create a great online livestreaming concert experience, not to sell merchandise or help fans chat online during a concert. By trying to do too many things, VyRT couldn’t successfully focus on the problem it originally wanted to solve. 
• Before starting a new business, analyze the market. A business idea is just the beginning. Before you turn your idea into a product or service, conduct a market analysis to ensure there’s an unmet need and demand for your offering. You must also be sure you have the skills to fulfill your venture’s purpose and ensure there will be enough business to yield a profit.
• Find ways to stand out from the competition. It’s essential to differentiate yourself from the competition. Do a deep dive and perform a competitive analysis in your market. Consider your strengths and opportunities, your unique selling proposition, and how your company will offer something different or new that isn’t part of the market’s current offerings. 

Avoid the pitfalls in your new business venture

With careful planning, small business owners can avoid the pitfalls that derailed the 2011 VyRT streaming service. New ventures should stay true to their core business purpose, assess new markets carefully, and do extensive research on competitors. 

Use your critical thinking skills to identify opportunities and avoid unnecessary obstacles and failures to give your venture the best chance of success.

Nicole Fallon contributed to the reporting and writing in this article.