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
'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.
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R. Thomas Umstead serves as senior content producer, programming for Multichannel News, Broadcasting + Cable and Next TV. During his more than 30-year career as a print and online journalist, Umstead has written articles on a variety of subjects ranging from TV technology, marketing and sports production to content distribution and development. He has provided expert commentary on television issues and trends for such TV, print, radio and streaming outlets as Fox News, CNBC, the Today show, USA Today, The New York Times and National Public Radio. Umstead has also filmed, produced and edited more than 100 original video interviews, profiles and news reports featuring key cable television executives as well as entertainers and celebrity personalities.
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