A US start-up mobile firm called Amp'd, which was offering a content heavy mobile offer on the back of Verizon's phone network, has filed for Chapter 11 bankruptcy protection, unable to meet debts that are reportedly just under $100 million.
Amp'd was the first US operator to offer mobile music downloads for 99 cents, and also commissioned its own original content, including the Lil Bush cartoon that we reported on yesterday (a satirical cartoon show that has now been snapped up by Comedy Central and will feature the voices of Iggy Pop and others).
Management at the firm are spinning themselves as being "victims of their own success", saying that they have run up spiraling debts in a bid to keep up with growing demand for their services (ie uptake has been so good that they are having to invest more than expected in back end delivery). With that in mind, they hope that they will be able to restructure and trade out of their bankruptcy quite quickly.
Some commentators are not convinced though. There had been reports of divides in the company's board, with some suggesting they dump the direct-to-consumer subscription model and become content providers to other mobile networks. Others question whether Amp'd have the funding in place to continue operating until they reach the million subscriber mark that some say is necessary for a subscription based mobile content service to be financially viable - especially as the take up of mobile content services remains relatively slow outside the early adopter market.