On-demand video streaming service Vdio has been shuttered without any warning by Rdio owning to its inability to deliver a business model that was attractive to its investors.
The service, which was still being advertised as beta, was made available to Rdio subscribers in April this year followed by a public release in June. Vdio aimed to offer different service as compared to its rivals like Amazon and Netflix. Rather than a fixed subscription fee, users were allowed to rent particular videos by paying rent or buying a single download.
“We have concluded that we were not able to deliver a differentiated customer experience or a business model which was attractive to shareholders”, read the FAQ on Vdio website.
It seems that one of the major negative for the company was the content which it was offering wasn’t all that different from other sites.
Vdio assured that all those who have purchased movies and TV shows will be refunded. “All movies and TV shows purchased will be completely refunded and will no longer be available for streaming on Vdio.”
“As of Dec 27, 2013, we have stopped accepting new Vdio transactions. Customers who purchased videos or or have unused rentals will be offered Amazon gift cards in an amount equal to the total cost of their transactions on Vdio. Vdio VIP promotional credits are not eligible”, the website added further.
