Home > News > XTV Closes Shop After It Can’t Find Buyer • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

XTV Closes Shop After It Can't Find Buyer

Adult company, which marketed Internet protocol TV, said subscriber base grew slower than anticipated.
XTV Closes Shop After It Canât Find Buyer
Get XBIZ News
XBIZ Research
Will virtual reality headsets like the Oculus Rift revolutionize adult entertainment?
Yes
  54.39%
No
  45.61%
Out of 114 votes. Results based on votes submitted by members of XBIZ.net social network.
Apr 16, 2008 12:00 PM PST    Text size: 
WOODLAND HILLS, Calif. -- The XTV experiment is over.

Three years after its grand rollout, the company that marketed hundreds of adult channels over an Internet protocol television network has called it quits, XBIZ has learned.

"The [company] has ceased accepting any new subscribers, has turned off its Internet distribution facilities and no longer provides any video content to any former subscribers," it said in a regulatory filing.

XTV, which operated in conjunction with mainstream content network ITVN, is closing shop without any remaining assets, according to the filing. The company, however, has approximately $10 million of unpaid liabilities, including more than $8.35 million of secured debt.

The company claimed in the filing that "business and subscriber base grew slower than anticipated and, to a large extent, has been displaced by new evolving technologies and services that have undercut [its] business model of charging subscribers a monthly fee for obtaining television programming over the Internet."

It also said that it wasn't able to raise additional capital and the company became doomed after Canada-based BroadShift Inc. abandoned efforts to acquire the company for $11.5 million in December.

Unable to find another buyer and because of "a continuing" negative cash flow, XTV and ITVN ceased operations on April 3.

The company had 85 investors, including long-time adult industry entrepreneur David Koenig, who told XBIZ that he couldn't comment on the closure until the business formally winds down within 20 days.

But Koenig, one of the founders of the company who owned at one time 18 percent of the company, did say that he is still in litigation over promissory notes and ownership of numerous domains.

"The cases are still wending their way through the legal process," he said.

ITVN and XTV sued Koenig in Los Angeles Superior Court for the return of dozens of domain names, including XTV. com. The URLs are registered in the names of Koenig, Holio Inc. or Holio.net, according to court filings.

Koenig also filed suit over $427,000 under a promissory note and approximately $170,000 of interest, attorneys fees, unpaid consulting fees and unpaid licensing fees.

A Los Angeles Superior Court judge is holding $148,000 of the company's cash pending the outcome of the Koenig suit.

XTV and ITVN President Charles Prast, who serves as the last remaining employee of the company, did not return calls at press time to XBIZ.

With its video-on-demand technology, XTV consumers could connect a set-top box to an existing broadband router, plug in the set-top connector to a television set and subscribe to the VOD channels.

While prices varied for its offerings, XTV adult-channel bundles cost $29.95 a month, with an additional $99.95 for the set-top box.

The company marketed XTV in U.S., Asia, the U.K. and Germany. At one point, it had more than 200 webmaster affiliates that promoted the service, which rolled out in March 2005.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

PROFILES & BIOS

Exec Seat: Q&A With JuicyAds’ Jimmy “Wizzo” Foreman

Through his 17 years in the online adult space, JuicyAds’ Jimmy “Wizzo” Foreman has always found ways to help companies better monetize their sites and put deals together. In fact, Wizzo’s... More »

Q&A With JOYDIVISION’S Bianca Kuennecke

For the last 20 years German powerhaüs, JOYDIVISION has earned a reputation in the industry for being one of the foremost manufacturers of high quality pleasure products in the world. With an unmistakable... More »

Company Spotlight: Rising Above Labels

Transsexual (aka TS, trans, but NEVER tranny or she-male) content is prolific – and profitable – in markets around the world, which may seem surprising because of the reputation it still holds... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Access the latest issues of the industry's leading trade publications in digital form. View online or download for offline viewing.

UPCOMING EVENTS

XBIZ.net London Gathering

Feb 19 - Feb 19
London, UK

QWEBEC Snow Gathering

Feb 20 - Feb 23
Quebec City, Canada

AEVC 2015

Feb 25 - Feb 28
World Wide Web

Adultcon Los Angeles

Feb 27 - Mar 01
Los Angeles, California
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!