ReelTime’s attempt to trump Telstra BigPond’s internet movie service has collapsed
- ReelTime Media’s struggles over the past couple years and has been voluntarily placed into the hands of administrators
- It has lost close to $4.5 million just this year ending June 30
- EzyDVD’s CEO Jim Zavos resigned from the board of ReelTime yesterday in the wake of the continued struggles
ReelTime Media’s struggles over the past couple years has finally come to an end and has been voluntarily placed into the hands of administrators. This notification comes after it recently suspended its shares on the Australian Market, the second time since it began trading at the start of 2006.
From its inception ReelTime’s movie download gateway barely drew any revenue in its first year. It has lost close to $4.5 million just this year ending June 30, while only generating just below $20,000 in revenue.
The company had received initial backing from Sony, but it later suspended it shares later that year. With its dwindling cash reserves of just $8,000 in late 2006, founder John Karantzis breathed some further life into the operation by securing a line of credit with a US based equity management company to the value of $4 million.
With its continued struggles to generate any revenue after relisting on the stock exchange, the future seemed to be looking up when it drew a partnership agreement with the DVD retailer EzyDVD. The agreement which was finalised just last month had tabled EzyDVD to be an on seller of the content provided by ReelTime’s portal.
EzyDVD’s CEO Jim Zavos resigned from the board of ReelTime yesterday in the wake of the continued struggles of the company. Just a month after he joined. ReelTime had resigned to the fact that it’s highly unlikely that the partnership with EzyDVD was to be mended.
Mr Karantzis had speculated after leaving the company in November last year that there was some disharmony around the future of the company stating "I guess there were two views. One was that (Jim) Zavos would come in and renegotiate the Hollywood agreements and basically once that was done the business would be viable.
"The second view that I cynically held was that Zavos would come in and gain the know; get copies of the agreement, work out how the technology and everything else was done and then abandon it and go start his own."
Anytime, the main competitor within the movie download space, is also having it troubles as it also struggles to remain afloat. The company is holding major debts to creditors to the value of more than $10 million. It seems that the smaller players within the internet movie download sector are in need of a major strategic adjustment to remain viable and competitive.