Atmosphere Joins Place-Based Streaming TV Rival Loop In Announcing Layoffs
June 3, 2024 by Dave Haynes
The other company that’s been on a tear in recent years make free, DOOH ad-supported streaming TV channels available to businesses has also now hit something of business wall, with Austin, TX-based Atmosphere TV announcing significant layoffs, on the heels of rival Loop Media also laying off staff in March.
Rarefield Atmosphere, Inc., the business name for Atmosphere TV, has filed what’s called a Worker Adjustment and Retraining Notification (WARN) Act letter indicating it will be laying off 106 employees at its Texas office in July.
Atmosphere says in the letter, reported in multiple Texas business journals, that all affected employees have been notified of their “separation dates” from the company and that layoffs are expected to be permanent. The layoffs include account executives, engineers, directors, managers and producers.
Atmosphere is a spinoff from Austin-based Chive Media Group, and is expressly in the business of providing dozens of free streaming TV channels for environments like bars, fast casual restaurants and health clubs – with the company making its money through advertising intermingled with curated, usually light and entertaining content.
Ad sales on place-based networks is a tough business at the best of times, but it has grown particularly tough with the way the digital ad business is evolving and money shifting to things like retail media networks, where ad performance can be directly associated with sales.
Back in March, Loop Media’s SEC filings reported it had laid off and furloughed certain employees, and implemented salary reductions. Several C-level people also stepped down.
Atmosphere is in more than 60,000 venues, with a business model of providing free Apple TV set-top boxes that function as media players, running an app populated by content channels devoted to everything from viral videos to sports.
I am sorry Chive/Atmosphere was not ultimately successful. Not surprised… just sorry.
Note to self: Sell the ads FIRST… then spend the money… and hey… is it just me or does anyone else know where all the companies that sold screensavers went?