VidAngel files for chapter 11 bankruptcy protection
VidAngel, the Provo-based video filtering service embroiled in a lawsuit with some of Hollywood’s biggest film studios, announced Wednesday it has filed for chapter 11 bankruptcy protection.
In a prepared statement from Neal Harmon, the company CEO, he said, “It’s an important step to protect our company — as well as its creditors, investors, and customers — from the plaintiffs’ efforts to deny families their legal right to watch filtered content on modern devices.” The statement continued, “It also gives us breathing room to reorganize our business around the new streaming platform, promote and perfect the new technology, and seek a legal determination that the new system is fully legal and not subject to the preliminary injunction entered in California.”
VidAngel will continue to offer the filtering service, as well as its comedy bar, Dry Bar Comedy, located in downtown Provo.
“Our customers can filter movies on Amazon, Netflix, and HBO on Amazon, and we still have millions in the bank to fight this all the way,” Harmon said in his statement.
VidAngel is involved in a lawsuit with several film studios, including Disney and Warner Bros., based on VidAngel’s prior model of offering movies and TV shows to its customers, which could then be filtered through the VidAngel platform. VidAngel did so by decrypting DVD encoding which prevented this from happening.
VidAngel now allows customers to pay to filter movies and shows already available on Amazon, Netflix and HBO on Amazon.
VidAngel stated in the prepared press statement that the chapter 11 filing is “another legal step to protect the future of filtering.”