Ivi, Inc.

Ivi, Inc. ​​‌‌‌‌‌‌‌​‌‌​​‌​​​​​​‌‌​‌‌‌​​​‌‌attempted to solve the problem of expensive cable television by offering live streaming over the internet at a flat rate. Cord-cutters and budget-conscious viewers experienced this problem most acutely, frustrated by rising cable bills and inflexible bundled packages. The problem was highly measurable—cable costs were transparent and climbing, making consumer demand for cheaper alternatives observable through market research and competitor activity. Existing alternatives included traditional cable, satellite TV, and emerging services like Netflix, though none offered live television streaming at the time. Ivi's fundamental miscalculation was underestimating broadcast networks' legal power. The company launched without securing proper licensing agreements from major networks, assuming fair-use arguments would protect them. Warning signs were ignored: networks had successfully defended their content rights in previous cases, and the company's aggressive positioning as "the first online cable company" directly challenged entrenched interests. Ivi faced immediate legal action and ultimately shut down, having built a product without addressing the regulatory landscape that made it unsustainable.