With the pending expiration of the lower royalty rate allowed for small broadcasters, investors removed their support of the company. In late December 2015, LIVE365 laid off most of its employees and vacated its office, and the few remaining employees were working from home. On January 31, 2016, LIVE365 ceased webcasting and its website redirected listeners and users to a list of competing services. The shutdown of LIVE365 also affected terrestrial AM and FM stations that used the platform, causing them to disperse to other live streams. Nearly a year to the day after its closure, LIVE365 relaunched its site and streaming services.