×
You will be redirected back to your article in seconds

Vidme Shuts Down User-Generated Video Service, Citing Inability to Compete With Google, Facebook

Startup Vidme is shutting down its user-generated video service — because it can’t see a way to make money in the face of internet giants Google and Facebook.

New signups and uploads to the Vidme site and apps will be disabled Friday, and the service will be shut down Dec. 15, at noon PT, the company said.

In addition, effective immediately, all paid Vidme channel subscriptions will be suspended, and subscriber-only videos will be exclusively accessible by their video owners. The company said any outstanding earnings will be paid to verified creators within 60 days.

Founded in 2014, the company had described its platform as a hybrid of YouTube and Reddit, with videos curated by community members in different categories.

“Unfortunately we didn’t see a path to sustainability as an independent VOD platform in the face of competition from both Google and Facebook,” Vidme co-founder Warren Shaeffer said in an email.

The crux of the problem, according to Shaeffer: Vidme lacked critical mass in terms of its audience size relative to YouTube, Facebook and Instagram, so it “struggled to attract direct advertisers to help offset our infrastructure costs, leaving few resources to spend on product innovation and attracting new audience,” he wrote in a blog post Friday.

L.A.-based Vidme had raised $9.2 million from investors including NEA, Upfront Ventures, First Round Capital, Lowercase Capital, SV Angel and Mucker Capital.

According to Shaeffer, the company still has a significant amount of its funding available and plans to announce a new product next year (though he declined to provide details). Meanwhile, he’s hoping to cut a deal with a “creator-focused” company that might incorporate the Vidme technology in some new form in the future.

With the shutdown of the UGC platform, Vidme is laying off four full-time employees, Shaeffer said.

At one point, Vidme claimed to have nearly 1 million registered creators and more than 25 million unique monthly users. All told, according to the company, it delivered 6 billion views over its lifetime and the platform’s most popular creators were earning thousands of dollars per month.

Popular on Variety

More Digital

  • Snow White

    What's Coming to Disney Plus Starting in November

    Disney unveiled the complete list of films to premiere on its streaming service Disney Plus via a lengthy Twitter thread Monday. With its powerhouse catalog including Marvel, Pixar, Star Wars, and National Geographic properties, the full magnitude of the Disney empire will be seen once the streaming service launches. Along with Disney originals previously announced [...]

  • Grace Helbig

    Grace Helbig Hosting Facebook Watch Show 'Ladies First' About Empowered Women

    Longtime YouTube creator Grace Helbig has a new series — coming to Facebook Watch. In the unscripted eight-episode show “Ladies First with Grace Helbig,” set to premiere Tuesday, Oct. 22, the digital star sits down with a series of “empowered women” to learn about how they’re making a positive impact. Guests include actress-comedian Margaret Cho, [...]

  • Fortnite-Season-X-Out-of-Time

    'Fortnite' Goes Dark: A Masterful Marketing Stroke by Epic Games

    On Sunday, “Fortnite” — the most popular game on Earth right now — without warning, imploded into darkness. At around 2 p.m. ET on Oct. 13, a meteor in Season 10 of “Fortnite” that had been biding its time set off a cataclysmic chain reaction that sucked up everything on the the island and eventually [...]

  • reddit-snapshat-sharing

    Reddit Adds Snapchat Sharing to Its iOS App

    In a first such integration with other social networks, Reddit has added an option to share content from its iOS app to Snapchat. iPhone users can now share Reddit posts with their contacts on Snapchat, or add Reddit content to their Snapchat stories. Anything shared on Snapchat includes a special Reddit sticker, and links back [...]

  • tubi kids

    Tubi to Launch Tubi Kids, U.K. Offshoot

    Ad-supported video streaming service Tubi is the latest to jump on the children’s entertainment bandwagon: Tubi is set to launch a dedicated kids section on Oct. 21, the company announced at Mipcom in Cannes Monday. Additionally, Tubi will also bring its service to the U.K. early next year. Tubi’s new kids section will offer access [...]

  • Terry Back chairman ACF

    Veteran U.K. Media Investor Terry Back Joins ACF as Chairman

    CANNES — Veteran U.K. film industry investor Terry Back has joined ACF investment bank as chairman. ACF, headed by CEO Thomas Dey, has been at the forefront of the M&A activity around independent TV and film production outfits, mostly in the unscripted TV arena. ACF is in the midst of expanding its activities in the [...]

  • Jay Frank

    Jay Frank, UMG Senior VP and Digital Music Veteran, Dies at 47

    Universal Music executive and digital music veteran Jay Frank died Sunday after a battle with cancer. He was 47. UMG chief Lucian Grainge remembered him in a message sent to the company. “Dear Colleagues,” it reads. “I’m deeply saddened to tell you that our colleague and friend Jay Frank has passed after a recurrence of [...]

More From Our Brands

Access exclusive content