Audio Video News

One of the most overhyped experiments in multimedia is disappearing. Two-year-old Digital Entertainment Network, which attempted TV-style programming over the Internet, has decided to close down its operations after finding itself unable to raise the capital needed to continue. The company ran through approximately $65 million dollars during its short life, according to several news reports.

Los Angeles–based DEN positioned itself as one of the most cutting-edge of new technology companies, at the forefront of media convergence. The company produced inexpensive episodic programming aimed at an audience of teens and twentysomethings, programming which has now been halted. On Wednesday, May 17, DEN officials informed their staff of about 150 people that they were no longer employed. That number was half of the 300 working at the company earlier this year.

Turmoil and turnover among upper management—DEN had four CEOs within a few months—and a glut of nasty publicity combined to sink the operation. Bad press dogged the startup in recent months, including sexual-misconduct allegations against the company's co-founder, and questions over excessive salaries for top executives.

In early February, the company scuttled a proposed $75 million public stock offering that might have sustained it for a couple of more years. The final nail in the coffin was driven by Chase Manhattan Corp.'s Chase Capital Partners, one of DEN's largest investors, with a recent announcement that it wouldn't put any more money into the venture. Efforts to find a buyer also went nowhere. A bankruptcy filing is under consideration.