iP4Play Shuts Down Operation

Jun 3, 2011 7:30 AM PST

LOS ANGELES — Citing a slow adoption of Apple’s FaceTime technology by users and high talent costs, live video chat company iP4Play has shut its doors.

CEO Travis Falstad told CultofMac that the lack of FaceTime use and competition from webcams caused the shut down that saw 40 employees lose their jobs last week.

Pricey calls at $4 per minute for 5, 10, 20 or 30 sessions also contributed to iP4Play’s demise.

When asked if talent is owed money, Falstad said everyone will be paid for their work.

The company got off to a fast start last August claiming 1,000 paid chats in its first five days and just last month launched a new website that included fan merchandise and a call for new models overseas.

Falstad said he has another mobile app project currently in production.

“We thank everyone for their support. Our staff gave it their all but we were just a little bit ahead of the curve. We are proud of what we accomplished with a new technology in a short time,” Falstad said.

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