The rough economics of online content has maimed another business. Defy Media, maker of popular online series like Smosh, announced it is closing its Beverly Hills production office, according to this report from Tubefilter. The company still has offices in New York but this news is likely to reinforce the constant speculation about Defy’s future. Like AwesomenessTV, which recently sold to Viacom at a fraction of its last valuation, Defy had a deal with Verizon Go90. The shuttering of Go90 a few months back was no doubt an economic hit to Defy (it also raises questions about other content producers that got Go90 money like New Form Digital.)
More recently, we’ve been hearing that Defy Media took on debt it needed to restructure. That could explain how swiftly it shut down the Beverly Hills office. Maybe Defy can hold on and create for other platforms like Snap or Jeffrey Katzenberg’s upcoming QuiBi. But there’s no doubt that the outlook for most of these online video production firms has moved from thriving to surviving.