By : Erik Gruenwedel | Posted: 17 Feb 2010
Despite claims of millions of users, millions in revenue and a copyright-infringement court victory, Web TV site Veoh Networks filed for Chapter 7 bankruptcy earlier this month.
Founder and CEO Dmitry Shapiro confirmed the filing and subsequent shut down of operations in a Feb. 11 post on his blog post: http://www.dmitryshapiro.com/blog/?p=160.
“The distraction of the legal battles and the challenges of the broader macro-economic climate have led to our Chapter 7 bankruptcy,” Shapiro wrote.
Founded in 2005 with reportedly $70 million in backing from Time Warner, Intel and Goldman Sachs, among others, Veoh was sued in 2007 for copyright infringement by Universal Music Group. The two-year legal process, which had similarities to Viacom’s ongoing $1 billion claim against Google-owned YouTube, resulted in a California judge tossing out the case.
Ironically, YouTube’s market domination, coupled with the success of Hulu and TV.com, contributed to Veoh’s ultimate demise.