Less than two years after its launch, global media company Fullscreen has made the decision to shutter its SVOD service.
In an email sent to staff yesterday (Nov. 13), Fullscreen CEO George Strompolos said while “millions downloaded [the] app, and hundreds of thousands became paying subscribers” funding SVOD was limiting the company’s ability to invest in other divisions that have an established scale and immediate impact.
Fullscreen’s SVOD service will shutter in early 2018, with roughly 25 employees to be let go as a result of the closure.
“Many smart, creative people gave so much in pursuit of this ambitious project, from our staff to our talent and partners,” said Strompolos. “In addition, many young fans supported us by subscribing with their own hard-earned money. We thank you all for giving us a chance.”
Fullscreen’s SVOD service aimed to target the 13- to 30-year-old demographic. At its launch in April 2016, it hosted more than 800 hour of scripted and unscripted content, both original and acquired.
The company was founded in 2011, and is owned by Otter Media — a joint venture between the Chernin Group and AT &T.
See Strompolos’ full memo below:
When we set out to launch our own SVOD service, we knew it would be a huge challenge. We wanted to provide a new platform for the breakthrough creators, personalities and storytellers of social entertainment — and the fans who love them.
A lot went right. Our talented team built and launched a best-in-class OTT product experience from scratch. We created bold, first-of-its-kind original programming that resonated with young fans. Millions downloaded our app and hundreds of thousands became paying subscribers.
Despite our momentum, we’ve made the difficult decision to shut down the Fullscreen SVOD service in Q1 2018. We came to the conclusion that funding SVOD — a longer-term investment — was limiting our ability to invest in our Creator, Brand, and Rooster Teeth divisions that have more established scale and immediate impact. I shared this news in person with the core SVOD team earlier today.
Many smart, creative people gave so much in pursuit of this ambitious project, from our staff to our talent and partners. In addition, many young fans supported us by subscribing with their own hard-earned money. We thank you all for giving us a chance.
Going forward, we will double-down on our mission to empower creators and bring brands closer to fans. The award-winning product experience and technology we’ve developed over the past two years will be valuable as we build new brands and content offerings in the future. We will continue to identify and invest in talented creators and make ambitious bets to push the space forward. It’s in our DNA. I will share more details about our evolving strategy at the December all-hands meeting.