Micro-payment OTT platform, Recast, has recently appointed Alistair McAlinden and Chris Pole of Interpath Advisory as joint administrators. This move comes as a result of the company's failure to receive the necessary funds from a major investor, despite a prior funding commitment.
Founded in 2018, Recast has been a significant player in the OTT platform space, particularly in the sports sector. The company has partnered with sports clubs such as Extreme E and Manchester City, setting up channels on its platform over the past few years.
Recast not able to continue operating under its current model
Recast's unique business model allowed viewers to watch content without a subscription. Instead, they made micro-payments and received rewards for watching adverts and other actions. This innovative approach had attracted significant attention and investment, with the company successfully completing several seed and Series A funding rounds.
Alistair McAlinden, Head of Interpath Advisory in Scotland and joint administrator, said:
“Recast had enjoyed success with its offering, securing high-profile names from across the sporting spectrum, including Manchester City and Inter Milan, as commercial partners. Unfortunately, however, with the committed funding having not been received Recast was not able to continue operating.”
“As a matter of priority, we will be providing support to those employees who have been made redundant, including providing them with the information required to make claims from the Redundancy Payments Service.”
Founder and CEO of Recast, Andy Meikle, gave his thoughts:
“To suddenly find ourselves going into administration as a result of funding commitments not being fulfilled is devastating for everyone at Recast. While we’ve enjoyed many successes over the years, our recent traction particularly highlights how the sports and entertainment landscape so desperately needs an alternative content monetisation solution like Recast’s. It’s a sad day for all our shareholders, team members, partners, rights holders and fans, but I’m incredibly grateful to all of those who shared and supported our vision and journey.”
However, despite these successes, Recast has faced significant challenges. The company cites delays and failure to receive required funds from a major investor as the primary reason for its current predicament. This comes after other options, such as a sale of the business, had been considered.
Impact on the future of Recast
The fallout from Recast's entry into administration has been significant. The majority of Recast’s 42 employees have now been made redundant, with only a small number retained by the joint administrators. These remaining employees will assist in marketing the business and its assets for sale.
Despite the current challenges, the appointment of administrators does not necessarily signal the end for Recast. The administrators' role will be to find the best possible outcome for the company's creditors, which could include selling the business as a going concern or liquidating its assets to repay debts.
Recast's entry into administration is a significant development in the OTT platform space. It highlights the challenges faced by companies in this sector, particularly those reliant on investor funding. As the situation unfolds, sports fans and sports betting fans will be keenly watching to see what the future holds for this innovative platform.
Stick around for more Sports Streams News from Sporticos.
