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February 12, 2009, 03:36 PM ET
Cdigix Ceases Operations, Citing Poor Economy
Cdigix, a company that focused on selling a service to colleges to place movies and music on reserve online for students, quietly ceased operations at the end of December and is in the process of dissolving. It cited a lack of clients and an inability to raise money to continue. The company initially offered an online music service for colleges, but it ended that service about two years ago to focus on offering reserves of electronic media.
Mark Brodsky, president and chief operating officer of Cdigix, said in an interview today that the company was “a casualty of the economic times.” It had about 25 to 30 colleges either signed up for the service or were testing it, he said, but customers were notified at the end of last year that the service would shut down.
“We personally called every one of our customers to give them a heads-up before the holidays that we were in dire straits,” said Mr. Brodsky. He said the company had hoped to continue at least through the end of the academic year, but it was unable to raise enough money to do so.
Colleges used the company’s service, called C-Labs (pronounced “SEE-labs”), to digitize films and other media so students could watch them online for their courses. But some colleges had felt uncomfortable with the legality of placing copyrighted works online for reserve, even when only students in select courses could see them, said Mr. Brodsky. “I really believe that something like C-Labs will be part of the education landscape in the next few years,” he added.
Just last week another college-technology company, Ruckus Network, also ceased operations, citing financial troubles. —Jeffrey R. Young
Categories: Company-Watch
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