VidAngel Files for Bankruptcy Amid Hollywood Legal Battle

The family-friendly streaming service has no plans to curb its offerings or back off the litigation.
Courtesy of VidAngel

Fighting a legal war with deep-pocketed Hollywood studios isn't cheap.

VidAngel, the family-friendly streaming service that is being sued by Disney, Lucasfilm, 20th Century Fox and Warner Bros., announced Wednesday that it has filed for Chapter 11 bankruptcy protection.

The studios won an injunction against the streamer in December, prompting both an appeal and a new platform. The court in August balked at ruling the new service didn't violate the previous injunction. So VidAngel in September tried another tactic, launching a new battle against affiliates of the studios in Utah federal court. With those legal bills piling up, bankruptcy now follows.

“It’s an important step to protect our company — as well as its creditors, investors and customers — from the plaintiffs’ efforts to deny families their legal right to watch filtered content on modern devices," VidAngel CEO Neal Harmon said in a statement. "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 and not subject to the preliminary injunction entered in California."

The announcement also indicated that VidAngel has no plans to curb its offerings or back off the litigation.

“VidAngel will continue to offer our filtering service, and to add new content and new customers during the reorganization process," said Harmon. "Our customers can filter movies on Amazon, Netflix and HBO on Amazon, and we still have millions in the bank to fight this all the way.”