Internet video startup, TinselVision has closed it’s operations and the site now throws 403 error.

Tinselvision closed $6mn last year and their video-on-demand service was targeted towards South Asian communities in the US, UK and Canada.

They had struck online distribution deals for television content with STAR TV, Zee TV, Zoom TV (BCCL group co) and Bollywood film content from Yash Raj Films, but the market conditions and some troubles with its investor led to the closure of the company in September this year – source

Does this talks of state of online video in India? From what we have heard, another ‘well-funded’ player too has laid off 20 employees last month, citing cash crunch and limited revenues.