Dynamoplayer-shuts-downDynamoPlayer, one of the first the to market in terms of the 'direct-to-consumer' paradigm, has officially bit the dust. They will spend the next few months closing out accounts and letting users collect their remaining balances before they shut down existing video players in mid-June. By the end of June, the platform will be shut down completely. Read on for the press release from Dynamo.

From their press release Monday, April 22nd:

We sought to provide the most open system we could, enabling anyone to sign up for free and immediately begin distributing programs online with a simple revenue sharing agreement. The support and maintenance required to effectively serve the long tail of everyone who ever produced a video was too costly to maintain in terms of time, management, hand holding and missed opportunities.

The potential for Dynamo was huge, and the overall opportunity in the marketplace remains huge. We were one of the first companies to prove the potential for direct-to-fan video rentals and sales. In fact our earliest projections for the rise of VOD and demise of the DVD were almost exactly dead on, and the general market continues to grow for direct-to-consumer distribution. Yet, as any investor will tell you, there is a huge difference between being right about the marketplace and successfully running a business in that market.

A bittersweet ending for a major player (heh) in helping content creators self-distribute their work. It's a fierce market out there, with more VOD destinations out there than ever, but Dynamo sees the bigger picture. The final message on their Facebook page remains, simply stating: "May others rise in our place to serve the independents of the world!" Rob Mills from Dynamo also encourages people to "consider working with Distrify or Vimeo Pro for continued hosting and delivery."

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Link: User Announcement: Dynamo Shutting Down — DynamoPlayer