In a last-minute act of financial despair, Web soap network American Cybercast is turning to fans for help in seeking financial backing.
"American Cybercast is running out of money. We are in danger of going out of business this month," wrote Debbie Myers, the senior VP of production, in a letter posted on chat rooms for all AMCY soaps. "I desperately need your help."
The letter follows several months of company upheaval - including layoffs, resignations, and audience discontent, and a failed round of capital raising last month, in which at least one investor has begged out of the company.
Best known for its creation of ubersoap The Spot, AMCY followed up the success of its first project with meteoric growth in 1996, including the launch of three new serials. The growth proved to be too much too fast, and the company had to lay off 12 employees in November.
At the same time, a group of avid fans began boycotting the site in protest of what they felt was AMCY's lack of consideration for its readers, as well as a decline in story lines due to AMCY's attempt to "mainstream" its content.
AMCY is now scrambling for financing. "Unless we have an investor come in or sell the company in the next few days, we will have to close the company," says spokeswoman Kay Dangaard.
One tactic includes exhorting readers to write letters to advertisers and the mainstream press in support of AMCY. In her letter, Myers begged fans to "email Variety and Hollywood Reporter. Contact Bruce Haring at USA Today ... contact Jennifer Tanaka at Newsweek.... Let's send a message of support for 'EON 4,' 'The Spot,' 'The Pyramid,' and 'Quick Fix Theater.' Your passion may sway a firm's mind into investing in the company...."
"I'll probably out of a sense of loyalty write letters to the advertisers," comments Spot fan John McKay, "... but I don't know if the shoe has already dropped and they're just looking for a miracle."
Some fans are still embittered by the recent disagreements with AMCY management. "The only thing I find ludicrous is that these are the people who were snubbing their audience before and now they're coming back and begging us to help them," comments Harry Zink, an organizer of the recent boycotts. "Helping them and doing what they ask for is just going to delay the inevitable."
The demise of one of the granddaddies of online entertainment content could be a negative harbinger of things to come for other Web content creators. As Dangaard notes, "Everyone keeps asking, 'If American Cybercast can't make it, what chances are there for other companies?'"
