Apparently, there seems to be some challenges with growth for Diddy’s (real name Sean Combs) REVOLT TV. The music network will celebrate its first year next month, but according to The Post, the difficulty lies in expanding its reach beyond its original 25 million household base. According to the site:
The lack of growth has put Revolt in a severe cash crunch, several TV industry executives told The Post. Cable channels typically cost around $100 million to get launched. Without additional carriage, Revolt TV is finding it challenging to bring in a wider swath of advertisers.
CEO Keith Clinkscales said in an interview:
Like most start-ups, you have challenges of growing the business. The good news is that we had deals in place with Comcast and Time Warner Cable. They have been excellent partners. However, the merger discussions caused the whole industry to slow down. There’s a general wait and see on a lot of things.
He adds that the move by viewers and content providers to Internet-delivered video isn’t helping either.
On the search for new funding, the CEO said,
We have talks, we are a growing network and independent, and it’s prudent to look for sources of funding and content development. We’re making sure to find the best ways to optimize what we have.
REVOLT is owned by Combs, in partnership with Comcast. As part of its arrangement to acquire a minority interest in NBCUniversal, Comcast Corporation committed to carry several minority-owned networks. The arrangement followed pressure led by Maxine Waters in congressional hearings.