ROTTERDAM - XCast Entertainment has temporarily suspended all business operations following a board of directors decision to abandon all involvement in the adult video industry.
"A new strategic direction for the firm is currently under consideration, but until this has been decided upon, it remains purely a listed shell," the company announced in a Dec. 24 statement to shareholders. "Behind this development lie the problems suddenly developed by its American investment American Access [sic], which has declared itself insolvent."
XCast is the Netherlands-based holding company behind U.S. porn distributor American XCess. The company statement points to the internet's harmful effect on DVD sales as the main factor in its withdrawal from the adult market."[American XCess] specializes in international DVD distribution and trading in adult entertainment movie rights," the statement noted. "In the previous quarter, however, the internet rendered this business model entirely obsolete. XCast Entertainment's investment in American Access [sic] was accordingly written down to nil at the end of the business year."
XCast assured investors that it is in no danger of bankruptcy.
"The prospect is there for us to put our company to good use in the near future as a listed shell, in accordance with the wishes of our shareholders," said board member Klaus Goeser.
Former American XCess general manager Harry Jose had not returned calls seeking comment at post time.