Web Video Service Veoh Files For Chapter 7 Bankruptcy Protection
Making money with online video is no easy task, just ask Google. It's king of the hill video sharing service YouTube continues to operate in the red almost 5 years after its initial release, a reality which makes us wonder how anyone without Google's nearly infinite resources could possibly survive in this space. The latest competitor to bite the dust is Veoh, which if you haven't heard of it, was aiming to fill the void of copy protected content that was created when Google purged its archives at the behest of the TV networks a few years back.
The ultimate goal of Veoh was to give users access to major studio content and independent productions, but costly legal battles, primarily with Vivendi's Universal Music Group ended up overwhelming the good intentions of founder Dmitry Shapiro. Veoh had content agreements in place with CBS, ABC, Viacom, MTV, and even ESPN. At its peak the service was hosting almost 28 million users per month, but ultimately was unsustainable. Early investors in the service include some pretty big names such as Walt Disney, Goldman Sachs, Time Warner, Adobe Systems, and even some ex Viacom executives.
On Shapiro's blog he stated the company would file for Chapter 7 bankruptcy protection in response to the difficult economy, and also due to his ongoing legal woes with Vivendi, but the most likely scenario at this point ends with Veoh liquidating its assets and rejoining the internet ether from which all web 2.0 spawns.
If you haven't had an opportunity to check the service out yet, now may be your last chance. Any Veoh fans out there?
Comments
Comments are closed on this article
![]()
nekollx
February 15, 2010 at 10:14am
Walt Disney is still alive?
------------------------------
Coming soon to Lulu.com --Tokusatsu Heroes--
Five teenagers, one alien ghost, a robot, and the fate of the world.
![]()
ocnier
February 14, 2010 at 8:51pm
As much as the studios are ranting about p2p networks and the rise of the apple medium for dominance, this only exemplifies their ineptitude in developing a consolidated business model. Instead of hindering apple, they are providing high octance fuel to them as the premiere content distributor. Universal's quibbles with disney only show division amongst the entities involved. Much like steam did with gaming distribution, they are going to create the power of apple/netflix etc.., with media distribution which (LOL) is exactly what they don't want because they can't control it enough. If you can't nail the user experience and make it consumer friendly coupled with a full breath of library, then you're dead in the water. Consumer's will always go with the most consumer centrist company which in this case is apple or netflix at present (not because either is that great, but because they are fairly objective and way more consumer friendly in their approach to ownership). I submit the only thing truly saving them is that the internet structure/backbone isn't sufficient enough to support true content streaming with regards to streamlining the user experience. This will come eventually but not until "fios" esque capability is present on the majority of the communities in america. If the media companies don't get their act together soon the "milennial's generation" will leave them behind to die like the dinosaur, they're already giving ad agencies fits because their taste/experience of reception of content is already markedly different from any other previous generation. The thing that floors me about these companies is that without positive solidarity then they fail -"they see the train coming straight at them but can't work together long enough to get off the track........."
Log in to MaximumPC directly or log in using Facebook
Forgot your username or password?
Click here for help.
















