Tube Music Network Deflates

MTV/VH1 co-founder Les Garland's start-up goes dark, leaving distributors and investors in the lurch.

By Shirley Brady

Tube Media Network, the multicasting all-music TV network founded by former MTV and VH1 exec Les Garland, shuttered yesterday.

A notice on the music video-based programmer's website thanks its supporters and viewers, and blames Tube's downfall on "financial limitations that ultimately contributed to its incapacitated state."

An SEC filing said Tube's board of directors will meet to discuss their options, but warned the likelihood of "the company continuing as a going concern is in considerable jeopardy."

The Fort Lauderdale, Fla.-based HD network was carried over-the-air by broadcast stations owned by Raycom Tribune and Sinclair, and was re-distributed to more than 13 million digital cable homes.

Its cable affiliates included Comcast, Time Warner Cable, Cox Communications, Charter Communications, Cablevision, Insight Communications, and Buckeye CableSystem, and it was also offered to Verizon's FiOS TV subscribers.

Garland and Tube Media Corp. (formerly AGU Entertainment) were recently hit with a class action suit filed by investors, but they have not yet filed for bankruptcy protection.

Tube's overly ambitious business plan included attempting to launch a movie division, and also create a multimillion-dollar live concert facility in South Florida from which it would broadcast original concerts and other programming.

Its financial woes included a $12 million loss on $2,000 in revenue from Jan.-Sept. last year, forcing the company to entertain two potential buy-out offers this year, including a $10 million offer from a group of Houston investors.

Both potential deals fell through, prompting an exodus earlier this year that included Tube's former CEO D. Patrick LaPlatney and CFO Celestine Spoden.

More details on Tube's demise are in the South Florida Business Journal, which has been covering the network's financial woes that led to yesterday's closure.

One beneficiary: Concert TV, the broadband/VOD music programmer that was irked by Tube's identical logo.

Meanwhile, another music-based network launched today: Atlanta-based Eye Music Network, a music video-based service targeting cable operators and IPTV services. Its mix of 70s-90s tunes and contemporary music can be found on Raketu.tv.

Comments (6) for "Tube Music Network Deflates"

Wow - what does this say for all the independent start-up networks that couldn't get launched on cable systems, now can't get enough distribution on broadcasters either. Is it time to say bye-bye to cable/programming entrepreneurs? Or was this just bad TV, that couldn't find an audience, advertiser or affiliates?

Posted by bob gold on Tuesday, October 2, 2007 @ 05:56 PM

...not good news! Man, when there was nothing on tv for us to watch, and that was often, as my husband and I do not fall in the 18-34 male demographic that rules the airwaves, the tube always had a great, stupendous show going...we will miss it -- it was one of the best things on tv!

Posted by maggie on Tuesday, October 2, 2007 @ 11:25 PM

Bad news over-air digital channels. But no surprise. Someone really needs to shake up the OTA model. I thought TUBE was a good solution -- advertising as content; worked for MTV. But what's with the concert hall? Garland is a bit nutty with the checkbook. WAMI was promising too. Oh well, Another one bites the dust. Another one bites the dust-ah.

Posted by MV3 on Wednesday, October 3, 2007 @ 10:09 PM

Rather a shame, really. But at least while they were on I was able to record and burn to DVD many hours of music videos to use in my mobile DJ business. I was hoping to grab still more, but alas, I guess it's not to be.

Posted by Leo Productions on Thursday, October 4, 2007 @ 11:11 PM

I just turned on The Tube as I do every weekend to hear and see real music. What a shock. But wait a minute, how could this great idea lose money! All that had to be done is show great videos. What is this about movie production and concert halls? I would have been satisfied with just the vids. Does that take a ton of money? Maybe there will be someone to take up the banner and continue where The Tube left off, but with a more focused goal. I am sure I am not alone in missing The Tube.

Posted by can on Sunday, October 7, 2007 @ 01:49 AM

The Tube was invaluable when our daughter was born and we were up all night and just needed something enjoyable and relaxing to watch, while still being able to go to our daughter when she needed us.

We had a few scares when animal shows replaced The Tube on Saturdays, but all of a sudden The Tube disappeared during the week too.

Now we know why.

Sad.

Posted by Parents on Saturday, October 13, 2007 @ 11:38 AM