The aim of the Fiasco Awards is rewarding the best projects in the ICT field that have ended up as a FIASCO. We want to promote a critical spirit, a positive attitude towards the obstacles in the road to success, and why not? let's admit it: to have fun. More »
Don't be afraid (D'on ve el fred? - ¿Dónde vive Alfredo?)
Finalist Fiascos
Mobuzz.tv, Internet television


The Mobuzz.tv project for Internet TV stared in 2005. Based in Madrid, with almost 20 people in the payroll, Mobuzz.tv was created for the broadcasting of short programs, of between five and eight minutes, targeted to young internet users. The project had an international vocation, and broadcasted its programs in French, English and Spanish. Mobuzz.tv claimed that, as it had more than six million monthly views, visibility in more than 180 countries and a community of 50.000 subscribers, it had become an Internet TV reference in Europe. Mobuzz.tv was using all the web2.0 potential, fostering viewers' participation by sending news to a newsroom or through an application to hang videos recorded with the mobile telephone.

The fiasco

The business model of Mobuzz.tv's was, basically, the same one of the majority of traditional televisions: advertising income. That fact, in a highly competitive environment and in the middle of an international crisis, made the project economically unfeasible. Their financial difficulties led the people behind the initiative to interrupt regular broadcasting and to launch a call through the internet to try to gather 120.000 euros in donations. They did not obtain the money, and at the end of 2008, Mobuzz.tv staff announced in Twitter that they were being fired: that is how Mobuzz.tv ended.

What have we learnt out of it?

The fiasco of Mobuzz.tv is an example of one of the mysteries haunting the application of new technologies: how can we add value to contents when its replication and distribution has a marginal cost of practically zero? This is an issue affecting both traditional and recent business models related to contents. Until now a significant part of the revenue came from advertising, but this activity is also undergoing deep change. Audience does not mean business anymore. The clearest example of it being Youtube, which despite its popularity, survives economically thanks to Google's support. Mobuzz.tv did not find the right success formula? if there exists one.

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