User-generated content in flux: Zannel surfaces while Mojungle falters

The volatility of the early user-generated mobile content market was highlighted as one player strolled onto the playground while another was carried off the field.
Zannel Inc. officially launched service this week with an offering that allows users to create and share videos on wireless phones. The company is courting large media companies as well as wireless bloggers with a platform that supports the presentation and distribution of mobile content across wireless networks and devices.
The Menlo Park, Calif.-based startup has inked more than 1,500 content partners including comedians and filmmakers, and allows users to create personalized channels of videos and pictures.
Meanwhile, Mojungle, an early player in the user-generated mobile video game, was snapped up by Peak Performance Solutions Inc., which provides technology for insurance companies. Terms of the deal were not announced.
Mojungle in December aborted plans to auction itself on eBay after the company received zero bids. The company reportedly hoped to get an offer of $250,000; instead Mojungle failed to secure even the $60,000 opening bid.
The announcements underscore a growing concern among the would-be wireless YouTubes: While there may be substantial demand for user-generated mobile video, the industry has yet to demonstrate a viable business model.
“We don’t believe this market is really going to take off until one year from now,” Zannel COO Steve Hoffman said earlier this year. “Handsets that are capable of video have to hit a critical mass. All we’re doing right now is laying the groundwork.”