Online video is not working in Spain and the latest piece of bad news is movie store Youzee being forced to change its business model and cut out a large part of its economic difficulties.
The job cuts will involve around four-fifths of the firm’s employees and the change in business model will see the abandonment of subscription. The company has not yet announced the measures it will take to compensate users who have already had paid fees in advance.
Youzee began in December 2011 as a legal alternative to streaming services such as Netflix and Wuaki.tv. The service proposed three finance models: the most popular was a monthly or quarterly subscription, offering a flat rate of content at €6.99 per month; rental of content at €3.99 each; finally, outdated series and movies offered for free with funding from advertising.
"After much effort we have to give up this dream due to slow growth as the VOD market in Spain, in the complexity of the current business models," the company says.