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Product October 15, 2024 · 6 min

Live video still can't figure out the money

Ten years of trying to make live commerce work — and why the economics keep breaking the same way.

If you missed the Made on YouTube event, you missed a subtle but important signal: YouTube is still trying to figure out what live means for their creator economy, and the answer is still "maybe shopping?"

I've been in this conversation in various forms since 2019, when I was building Facebook Live Shopping inside Meta's NPE team. The fundamental tension hasn't changed: live video is a great product for building connection and urgency, but it's a terrible product for completing commerce transactions. The two things want to happen at the same time, and they keep interrupting each other.

The shopping experience breaks the viewing experience. The viewing experience breaks the shopping experience. The creator has to choose which one they're doing every thirty seconds. The viewer has to do the same. And the platform is in the middle trying to capture both moments with one interface.

Why it keeps breaking

The platforms keep reaching for the TikTok Shop comparison, but TikTok Shop works (to the degree it works) because the content is short, the purchase intent is high, and the friction from "video" to "buy" is minimal. Live video is different. The attention and the transaction are fighting over the same window.

The category that actually works is entertainment-first live with commerce as an add-on — not commerce-first live with entertainment as the hook. The QVC model works because it's always been transparent about what it is. When you're watching a YouTube creator you follow for their personality and they suddenly pivot to selling you something, there's a small but real trust tax.

Live commerce will eventually work. But it'll work as its own genre, not as a feature bolted onto existing creator formats.

Originally published on LinkedIn · Oct 2024 View original ↗