60Frames Suspends Operations

New media studio 60Frames has suspended operations because of a lack of funding. The Hollywood Reporter broke the story, and we have confirmed.

Launched in July of 2007, 60Frames was incubated by Hollywood talent agency UTA and web ad firm Spot Runner (which is having its own troubles) and raised $3.5 million in funding. The company promised to provide “professional content creators access to financing, speed to market, greater ownership over their intellectual property, and participation in all revenue streams including advertising.”

60Frames had released 30 online series so far, including some featuring recognizable talent. Carpet Bros., featuring David Spade, was sold as a pilot to HBO, and Blood Cell, featuring Jessica Rose, was picked up by TheWB.com. The company had a deal with NBC to get network pickup of shows that had a paying sponsor, but nothing came of that.

Troubles for 60Frames began in earnest in October of last year, when the company laid off 6 of its 14 employees. In February we reported that 60Frames was actively seeking a buyer. The Reporter writes that 60Frames execs are still looking at ways to bring the company back, but given its lackluster track record, that’s unlikely.

60Frames is just the latest casualty of the great web video shakeout of ’09. Already this year ManiaTV shut down, HBO Labs was sold off to Break, and Disney’s Stage 9 laid off most of its staff.