Video hosting website Veoh has officially filed for bankruptcy protection.
Dmitry Shapiro, founder and chief executive of Veoh Networks Inc has said that “The distraction of the legal battles, and the challenges of the broader macro-economic climate have led to our Chapter 7 bankruptcy,”
This all stems back from two legal cases brought against Veoh, IO Group, Inc. in 2006 and Universal Music Group Recordings, Inc. in 2007. The case in 2007 was dismissed by a judge stating that ‘Veoh was taking the necessary steps to stop copyright infringement.’ WMG had said they planned to appeal against this decision.
Although Veoh have not been prosecuted for copyright infringement, it’s the time and effort to fight against massive conglomerates like WMG that has ultimately lead to Veohs down fall.
I personally have never used Veoh, but they boast 28 million users per month which is, by no mean feet, a lot users. And to see a website with such a big following go down, is always a shame.