One Year After Raising $10 Million using Reg A+, VidAngel Files for Chapter 11
Less than one year after raising $10 million with Reg A+, VidAngel has filed for Chapter 11.
VidAngel is a video streaming service that allows values-based consumers the ability to scrub inappropriate language, nudity, and violence from movies and TV shows. The company offered the cleaned-up version of films by cracking the encryption on discs, then selling and repurchasing the content in transactions with consumers who specified edits — in effect, the sale and re-purchase created a cheap, family-friendly rental of films.
Less than two months ago the 9th Circuit Court of Appeals sided with Disney, 20th Century Fox and Warner Bros in their lawsuit against the Utah-based company.
VidAngel management has announced the protracted legal battle against big film has taken its toll while they have been mounting a “robust legal defense.”
“We have filed a petition for relief under Chapter 11,” announced Neal Harmon, CEO of VidAngel. “It’s an important step to protect our company—as well as its creditors, investors, and customers—from the plaintiffs’ efforts to deny families their legal right to watch filtered content on modern devices. It also gives us breathing room to reorganize our business around the new streaming platform, promote and perfect the new technology, and seek a legal determination that the new system is fully legal and not subject to the preliminary injunction entered in California.”
VidAngel said it was important their fans know that VidAngel will continue to offer their filtering service during the reorganization process.
“We are also actively hiring additional engineers to further accelerate the continued development of VidAngel. Our original series, Dry Bar Comedy, is exploding and has had over 16 million minutes viewed in the last 7 days. Our customers can filter movies on Amazon, Netflix, and HBO on Amazon, and we still have millions in the bank to fight this all the way.”
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