Pixable, founded in 2009 by three MIT students, began as a photo management app that aggregated and sorted photos from social networks. It later pivoted to a media product targeting US millennials, achieving significant user engagement. Despite its success, Pixable shut down in 2015 due to funding challenges.
What Was Pixable?
Pixable, initially a photo aggregation app, pivoted to a media company targeting US millennials. Its unique value lay in engaging original content, achieving 9.4 million monthly active users and 58 million video views. Notable achievements include partnerships with Walmart and Disney, and a viral video with over 100 million views.
What Happened to Pixable?
The story of Pixable is a compelling narrative of innovation, success, and eventual closure, marked by several key phases:
Founding and Initial Success: Pixable began as a social photo aggregation tool, leveraging APIs from major social networks like Twitter, Instagram, Facebook, and YouTube. Initially targeting an international audience, it later pivoted to focus on US millennials, achieving 9.4 million monthly active users and 58 million monthly video views by October 2015.
Innovative Features: The app was featured in the Apple App Store and developed a proprietary contributor platform for original reporting. Pixable also created sponsored content for major brands such as Walmart, Sony, Etsy, and Disney, and customized its content management system to handle high traffic and improve user experience.
Challenges and Competition: Despite its success, Pixable faced stiff competition from digital media giants like BuzzFeed and had to contend with third-party viral video licensing companies. These challenges, coupled with difficulties in raising funds, significantly impacted its operations.
Financial Difficulties: External circumstances unrelated to Pixable's operations made it challenging to secure additional funding. This financial strain ultimately led to the decision to shut down the company.
Closure and Legacy: Despite achieving significant milestones and making a mark in the digital media landscape, Pixable could not sustain its operations due to financial constraints. The company concluded its journey with a note of gratitude to its team and a call to hire the talented individuals who contributed to its success.
When Did Pixable Shut Down?
Pixable shut down around November 30, 2015, as detailed in an article by Chris Anderson on Medium. The closure was primarily due to financial difficulties, despite the company's significant achievements and user engagement.
Why Did Pixable Shut Down?
Difficulty in Raising Funds: Despite Pixable's impressive growth and user engagement, the company struggled to secure additional funding. This financial strain was a significant factor in its closure. CEO Andy Volanakis and the team faced numerous rejections from potential investors, which ultimately hindered their ability to sustain operations.
Market Competition: Pixable faced intense competition from digital media giants like BuzzFeed. These competitors had more resources and could attract larger audiences, making it difficult for Pixable to maintain its market share. The competitive landscape forced Pixable to constantly innovate, but it wasn't enough to stay ahead.
Monetization Challenges: Traditional banner ads were ineffective for Pixable's target demographic. The company focused on engagement metrics over ad impressions, but this approach did not translate into sufficient revenue. The inability to effectively monetize their content was a critical issue that contributed to their financial difficulties.
Operational Costs: Maintaining high engagement metrics without increasing the budget was a significant challenge. The costs associated with producing original content and managing a proprietary contributor platform added financial pressure. Despite their efforts, the operational expenses outweighed the revenue generated.
External Circumstances: Unspecified external factors also played a role in Pixable's downfall. These circumstances, beyond the company's control, made it increasingly difficult to continue operations. The combination of these external challenges and internal financial issues led to the decision to shut down.
Lessons Learned from Pixable's Failure
Funding is Crucial: Secure diverse funding sources early to avoid financial strain and ensure sustainability.
Adapt to Market Changes: Stay agile and ready to pivot in response to market demands and competition.
Effective Monetization: Develop a robust monetization strategy that aligns with your target audience's preferences.
Manage Operational Costs: Balance high engagement with cost-effective operations to maintain financial health.
Innovate Continuously: Constant innovation is essential but must be balanced with practical financial planning.
Understand External Factors: Be aware of external circumstances that could impact your business and plan accordingly.
Build Strong Partnerships: Collaborate with industry leaders to enhance credibility and expand reach.
Focus on User Experience: Prioritize user experience to build a loyal and engaged audience.
We Shut Down Startups
Pixable's journey underscores the complexities and challenges startups face, from securing funding to navigating intense market competition. When a startup like Pixable reaches the difficult decision to shut down, Sunset steps in to handle all the legal, tax, and operational burdens, allowing founders to move on swiftly and without penalties.
If you're facing similar challenges, don't let the winding-down process overwhelm you. Book a demo with Sunset today to see how we can help you close your startup efficiently and focus on your next venture.
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