PROVO — Utah-based streaming video service VidAngel has filed for Chapter 11 bankruptcy, according to a Wednesday press release.
But VidAngel CEO Neal Harmon says in a blog post that the company “is not going away.” Rather, the company is taking time to reorganize its business plan, he said.
VidAngel allows users to filter content from movies and TV series on streaming services such as Netflix, Amazon and HBO.
The company has been involved in a legal battle with several Hollywood studios, including Disney, Warner Bros. and 20th Century Fox. The studios say the company is breaking copyright law by filtering their content.
Harmon said in a release that the company is filing for Chapter 11 to protect itself from a recent lawsuit.
“It also gives us breathing room to reorganize our business around the new streaming platform, promote and perfect the new technology, and seek a legal determination that the new system is fully legal,” Harmon said in the release. “It’s important for our fans to know that VidAngel will continue to offer our filtering service and to add new content and new customers during the reorganization process.”
Filing for Chapter 11 will automatically put on hold the lawsuit with the Hollywood studios, Harmon said.
In September, VidAngel filed for a new lawsuit in Utah in which the company claimed that the 2005 Family Home Movie Act allows for how the company filters and streams content. This lawsuit will continue even as the first court battle will be put on hold, Harmon said.
The company started a new, streaming-service based filtering system in June.
In the blog post, Harmon claims the company is still generating millions in revenue, due in part to its venture into original content. The company created an original series called “Dry Bar Comedy.”
Harmon said filing for Chapter 11 should give the company time to take care of its customers and investors.
“We want to thank our customers and investors for all their support,” Harmon said in the blog post. “We will keep you updated as we continue this legal battle — if necessary, all the way to the Supreme Court.”