Vdio streaming service closes, issues refunds via Amazon gift cards

Vdio, the video-streaming service from the people behind the music service Rdio, closed this week after concluding it could not "deliver a differentiated customer value proposition or a business model which is attractive to shareholders."

In a FAQ on the Vdio website, the company said it is no longer accepting transactions and will offer refunds on purchases and rentals in the form of gift cards to Amazon.com (Nasdaq: AMZN). 

Vdio opened its service to the general public in June after an initial phase where it was only available to Rdio subscribers, according to a report in The Verge

Vdio is not the first online-video project from Skype and Rdio co-founders Janus Friis and Nikoas Zennstrom to fizzle. The pair introduced Joost in 2007 but drastically scaled back the operation in 2009. It's currently on "pause," according to its website.

For more:
- The Verge has this story
- GigaOM has this story

Related articles:
Netflix to face more competition from stealthy startup Vdio 
Joost CEO steps down, company to scale back operations 
Comcast turns down Joost, company still shopping itself

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