KoldCast, an early pioneer of net TV has closed. Co-founder and CEO David S. Samuels announced the decision to shut the site.
In an email to its producers he said:“Simply stated, the costs of operation continue to outpace advertising revenue. Moreover, costs associated with audience development, in relation to industry CPM rates, make it impossible to expand our audience without losing money, which we have successfully been able to do for all but one calendar quarter during our life cycle. You read that right; we have never been able to generate an annual profit in this particular business.”
KoldCast TV, founded eight years ago, was home to a number of serialised originals, which the company distributed through its website and through apps for a variety of smart TV platforms. But while it tried to distinguish itself from sites dominated by user-generated content, it was never capable of capturing huge audiences and compete with the ever-growing online video giant that is YouTube.
Samuels said: “As some of you may know, our company, KoldCast Entertainment Media, LLC, has been self-funded since inception. Unlike virtually every other distribution platform, we put our own money in this game and, as a result, have lost every penny of our investment, which is a material multi-million dollar investment. The loss is painful from any number of perspectives.”
The KoldCast founders want to now focus on Dynamic Influence and Wild Spirit Studios, two sister companies that have been focusing on content production and consulting services for third parties.