Koldcast TV to Close Its Doors on March 31

/ Mar 6, 2014

koldcasttv

Online video network Koldcast TV, which focuses on original web series, short films, and documentaries, is closing its doors.

In a note sent to the platform’s producers, Koldcast Entertainment Media co-founder and CEO David Samuels said the reason to shut the platform down was pretty simple — there was no money in it. We’ve copied and pasted the full note below, but here’s the gist of it:

“Simply stated, the costs of operation continue to outpace advertising revenue,” Samuels wrote. “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 went live eight years ago and has looked to be a digital platform serving independent creators of web series and films. The platform, along with sister property The Sixth Wall, will officially shut down on March 31.

Going forward, Samuels says Koldcast Entertainment Media will remain intact, shifting focus to two other divisions: Dynamic Influence and Wild Spirit Studios. The company will focus on expanding its fee-based service offerings, the development of its own IP in games and apps, and the development of two “investment funds” for entertainment and technology.

“We also plan to expand our work relating to the creation of distribution and other revenue-generating opportunities for full-length television shows, movies, and documentary films on behalf of third-party producers and filmmakers,” writes Samuels.

Here’s the full note:

After nearly eight years in Internet TV, it’s become apparent that it’s time to lower the curtain on KoldCast TV.

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.

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.

I’ve elected to spare you, and myself, a lengthy, hard-core industry analysis, as it is what it is at this juncture – time to lower the curtain on KoldCast TV and The Sixth Wall. Therefore, effective March 31, 2014 will be the last day of operation for KoldCast TV and The Sixth Wall.

What’s next? KoldCast Entertainment Media, LLC will continue to operate our other two divisions – Dynamic Influence and Wild Spirit Studios – while laying the foundation for (a) an expansion of our fee-based service offerings, (b) the development of our own intellectual property in games/apps and other technologies and, (c ) the development of two investment funds – one for Entertainment, the other for Technology. We also plan to expand our work relating to the creation of distribution and other revenue-generating opportunities for full-length television shows, movies and documentary films on behalf of third-party producers and filmmakers.

In the interest of brevity, I’ve attached our Dynamic Influence Capabilities Deck (a one-pager) for your perusal. As to Wild Spirit Studios, we are in pre-production on our first project, a documentary film. When appropriate, we’ll share more on the social nets. Our primary social presence will be our KoldCast Entertainment Media Facebook page which, to-date, has barely been used. If you’re not already following us there, we invite you to do so.

Lastly, should you conclude there is a way we can help you get where you want to go in this industry, please do not hesitate to write. My email address at Dynamic Influence is [email protected], and at Wild Spirit Studios it is [email protected] I will be keeping my KoldCast.tv email address active as well.

On behalf of myself and co-founders Greg Samuels and Brian Samuels, thank you for your support of KoldCast TV and the industry space. We’ve loved working with you and wish you all the best professionally and personally.

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