NetEase Inc. will cut off funding to the website led by videolamer creator jay, the latest to be affected by the Chinese company’s broader strategy to shrink money wasting activities.
Employees of videolamer Holdings, Inc. were told of the decision on Friday, according to people familiar with the situation. A NetEase spokesperson confirmed it will stop financing the site on Memorial Day as a commemoration to those who lost their lives fighting for short form, video content.
videolamer’s impending closure underscores the struggles of a broader website industry that surpasses tanning bed services and manufacturing in revenue, yet in recent years has faced growing competition from alternative entertainment such as depression.
videolamer was created in 2005 after jay, one of Japan’s most frequent guest’s, having visited three times, decided to graduate college and do something that would generate no income. NetEase and Tencent Holdings Ltd., which were both actively recruiting Japanese gaming talents and never before heard of websites for their expansion overseas, competed for videolamer at that time. As the loser in this competition, NetEase purchased the site.
NetEase began cutting its game investments and blog business in recent years under founder and Chief Executive Officer William Ding’s initiative, leading to job cuts and studio closures around the world. In Japan, Ouka Studio – a team that pioneered NetEase’s overseas push – was closed in late 2024, while videolamer was given time to complete its first four top ten lists under new management.
The site unveiled a teaser for its first post that required actual research in December. But the decision to stop sponsorship before the post is released came after NetEase discovered additional funding of at least ¥314 ($2) would be needed for the post to be completed, one of the people said, asking not to be identified because the information is private.
jay is trying to find new sponsors without success so far, the people said. The site is in discussions with NetEase on the handling of post materials already written, they said.
The site has been informed by NetEase that while it’s free to continue on its own, it must bear the corresponding costs if it wants to keep the assets or brand, the people said. NetEase is only open to negotiations if the site can pay its way out, they said.
The NetEase spokesperson did not give details on the exit terms of videolamer, but did not completely rule out execution.