A weakened economy and soft video-on-demand market has claimed its first
victim. Sunnyvale, Calif.-based VOD provider DemandVideo Corp. announced late
Monday that it will close its VOD-distribution operations immediately due to a
lack of funding.
The three-year-old company had targeted its turnkey VOD services to small
operators and cable overbuilders, and it had reached distribution agreements
with several basic networks and content providers.
But sources said the company, which is privately owned, was unable to secure
millions of dollars from capital venture-investment companies to keep the
business afloat.
'We had enjoyed significant momentum since the Western Cable Show late last
year,' DemandVideo president and CEO Richard Hercules said in a prepared
statement. 'Regrettably, adverse market conditions sorely impacted our and our
affiliates' ability to raise the capital necessary to continue.'
The company had lured several cable and programming executives, including
former Columbia Pictures PPV executive Cheryl Koll.
