deathwatch, andrew frame, ashton kutcher, defamer, exits, ooma, top

Ashton Kutcher-backed startup Ooma is falling apart

Hold the phone: Voice-over-Internet startup Ooma is flailing, despite — or perhaps because of — a viral-video marketing campaign directed by Hollywood star Ashton Kutcher. Ooma launched its product, a $400 device which offers unlimited phone calls, last year, with a splash of press. Starstruck tech bloggers like TechCrunch's Michael Arrington gave away Ooma gadgets to readers in exchange for some facetime with Kutcher — and asked few questions about its nonsensical business model, which had it charging high upfront prices for hardware and giving away phone service. Now, we're told, its high-school-dropout CEO, Andrew Frame, has seen a host of executives leave.

The departures include Yahoo veteran Tish Whitcraft, CFO Tom Cronan, and VP of communications Sarah Ross — though we're told Ross is still consulting for the company. Outcast PR, Ooma's agency, tells me it no longer represents the company; dropping a PR agency is usually the sign of a company whose cash is running short. No wonder: Ooma's phone device is overpriced and technically unimpressive.

12:20 PM on Wed Apr 9 2008
By Owen Thomas
7,382 views
17 comments

Comments

Lewis at 01:00 PM on 04/09/08
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You're saying this to the guy with the $400 phone? Come on!
Wazimu at 01:31 PM on 04/09/08
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@Lewis: Just stopping to praise your GOB reference.
WagCurious at 01:58 PM on 04/09/08
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Connectedness Index: 114
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@Lewis: $400 is a reasonable price for a phone that has wireless, internet and video capabilities... Oh wait, this a landline phone? You're kidding, right? Is it in the shape of a football or something? Do I get a magazine subscription with it?
categorically at 02:15 PM on 04/09/08
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Are you telling me Ashton can't pick a good tech company to back?
abmw at 02:21 PM on 04/09/08
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I called this one out of the gate, and I offered advice to ooma that they needed to get this thing licensed via OEM agreements. The tech was fine, the idea of marketing a 400$ device was seriously stupid.

They never even replied to my offer of 30 days free consulting. I'm not even sure my limited suggestions for alternative channels could have made a difference. Sometimes, with these device deals, the ground work has to be laid well in advance.
chris311 at 02:45 PM on 04/09/08
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what, they thought just because Ashton Kutcher is there, I will pay $400 for a phone? Celebrities brain...what a waste of time.
Lulamaybelle at 05:12 PM on 04/09/08
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maybe David Letterman should introduce Ooma to Oprah.
Matt_ at 06:32 PM on 04/09/08
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@Lulamaybelle Oprah already uses Skype on her shows
HappyBlues at 08:11 PM on 04/09/08
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Dude... where's my phone?
raincoaster at 08:50 PM on 04/09/08
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Ooma gawd.
Superstarsteve at 11:41 PM on 04/09/08
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I think I'll stick to skipping over the iphone.
jtzl at 11:55 PM on 04/09/08
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@raincoaster: seriously--just watched that video, and the device seemed like something out of "sleeper." if i didn't know any better, i'd say he's been punk'd.
HowardHughes at 12:24 AM on 04/10/08
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looks like a continuum transfunctioner, maybe its worth it.
rumourone at 08:31 AM on 04/10/08
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See, the problem is, he should have never given away the gadgets. Big mistake Buddy, you should have made them pay for them. Duahhh. Never give anything away for free, it reduces its value. When you're good, you can make um pay for it.
rumourone at 08:33 AM on 04/10/08
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I think he named it wrong too. I mean, where did he get this idea? Ooma. OOOOMa?

Ooooomaaaa. Was this some midnight dream about his mom or something he heard at a massage parlor?
njl at 10:09 AM on 04/14/08
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Google "siooma". I'm pretty sure the etymology is similar.
mhunter8 at 07:43 AM on 04/19/08
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First of all, the reference that the phonegnome is identical in functionality isn't true. Ooma can completely replace your existing phone service, so you can eliminate the monthly billing. Feature for feature, phonegnome doesn't compare. I know, I've used both. Secondly, while $400 for a unit is pricey for a one time payment, it is exactly that - a one time payment. You can recover the upfront costs in less than 14 months - after that you're saving $$$. I've read articles droning on about how expensive ooma is and voip is getting cheaper every day, blah blah blah. Well the fact is, by the time I recoup my sunk costs (which will be January, 2009) it isn't going to be cheaper, and I will be ahead of the game. If you just do the math, it's a good deal and isn't over priced for what you get. Of course, I suppose if you have all your charge cards maxed out and are living from paycheck to paycheck and can't budget, it may be a problem. Finally, Ooma has a quite sizable initial infusion of cash, their infrastructure costs aren't the same as Vonage, Packet8, etc. so they can weather the storm for quite some time.