Their biggest problem was the pricing. This is a niche streaming service, regardless of what some may say. They're catering to only the fans of one specific genre, and their entire catalog is based off of one specific company's projects from that one specific genre. They're asking for $8 a month and struggling.
Meanwhile, fellow niche streaming service Shudder is just $5 a month and thriving.
This. The idea of spending $96/year for a very limited selection of films and TV shows built around one particular genre from one particular studio is just ridiculous. Everyone's chasing that sweet sweet Netflix money, but they all forget that 1) Netflix is over $12 billion in debt against $15 billion in revenue, and 2) Netflix established its initial value before creating their own shows by having content from a variety of different studios and genres. Really even the concept of studio-specific streaming services strikes me as unsustainable in the long run -- you wouldn't have gone to Blockbuster in the 90s if it only had movies from, say, 20th Century Fox, or to Family Video if it only carried movies from Disney, or to Hollywood Video if it only had movies from Paramount. The value of the old video stores came from carrying content from a variety of studios, and I think the same principle will ultimately hold true of streaming services.