Video Professor
| Company type | Private |
|---|---|
| Industry | Educational software, Instructional content |
| Predecessor | Data Link Research Services (DLRS) |
| Founded | 1987 in Lakewood, Colorado, United States |
| Founder | John W. Scherer |
| Defunct | 2009 |
| Fate | Company shutdown; assets sold; rebranded as Content Distributing, Inc.; bankruptcy filed in 2012 |
| Headquarters | Lakewood , United States |
Area served | United States |
Key people | John W. Scherer (Founder, former CEO) |
| Products | Computer instructional tutorials (VHS, CD-ROM, online streaming) |
Number of employees | (not specified) |
| Parent | Falan Funding Corporation (after acquisition) |
Video Professor, Inc. was a U.S.-based enterprise that specialized in instructional content for computer-related topics such as Microsoft Word, Microsoft Windows, and eBay. Established in 1987 by John W. Scherer in Lakewood, Colorado, the company became widely recognized through its pervasive late-night television advertisements and print campaigns in major newspapers including USA Today. The organization encountered disputes regarding its billing and sales tactics, as well as legal actions initiated against critics on the internet.
Origins and promotional strategies
The company evolved from Data Link Research Services (DLRS), a PC clone retailer founded by Scherer in 1987. Its initial product was a VHS tutorial titled Introduction to DOS, created primarily for DLRS clientele. Identifying greater revenue potential in educational content, the firm pivoted exclusively to tutorial production in 1988 and adopted the name Video Professor.
Video Professor gained notoriety for its frequent late-night infomercials featuring Scherer himself, with the first airing in 1991. The majority of these advertisements were produced internally and deliberately maintained low production quality. Starting with VHS-based lessons, the company transitioned to CD-ROM formats by 1996 and introduced online courses in 2003. These instructional packages were mainly marketed through television promotions and online channels, often highlighting "learning lessons" to effectively attract their target audience.
Operational framework
The company utilized a continuity sales approach for its CD-ROM tutorials, resembling mail-order book club models. Customers typically received an initial complimentary tutorial (with shipping and handling fees applied) upon ordering, followed by automatic shipments of additional tutorials chosen by Video Professor until the subscription was canceled. Prices for these lessons varied between $60 and $399 each. Online instruction was available through streaming media, granting subscribers access to the entire lesson catalog for approximately $30 monthly.
Video Professor also collaborated with social gaming networks such as OfferPal and SuperRewards, offering virtual currency incentives for enrolling to receive a free CD. However, fine print revealed that customers would incur charges of $399.99 unless the CDs were returned. This method attracted allegations of misleading marketing; TechCrunch founder Michael Arrington described Video Professor as an Internet scam.
Criticism centered on ambiguous continuity sale conditions and restricted consumer control over subsequent shipments. The company asserted that complaints were infrequent and addressed promptly, processing refunds within 30 business days. During the 2000s, Video Professor shifted emphasis towards its online streaming service, providing temporary access to the full lesson library rather than selling individual CDs.
Downturn
Despite substantial cable television advertising expenditures in 2009, Video Professor’s revenue declined sharply from $140 million in 2006 to less than one-third of that amount by 2008. Efforts to secure $10 million in funding that year were unsuccessful.
By April 2010, the firm announced a "reorganization," furloughed most employees without pay, and discontinued phone support services, leaving customers without avenues for refunds or assistance. Simultaneously, it accumulated debts owed to advertising agencies and faced criticism for unethical conduct. Consequently, Video Professor lost its accreditation from the Better Business Bureau.
In May 2010, reports confirmed the company’s permanent shutdown with no response to customer inquiries. Both Video Professor and founder John Scherer ignored lawsuits challenging their advertising practices. Communication from legal counsel ceased, Scherer’s Denver residence sold for nearly $3 million, and he withdrew from public engagement on blogs and social media platforms.
Ownership was transferred to Falan Funding Corporation based in Scottsdale, Arizona, under Robert Elliott Alpert. Customers awaiting refunds prior to this transition likely did not recover their money. In 2012, Video Professor rebranded as Content Distributing, Inc., filing for bankruptcy protection in Colorado District Court (Case No. 10-34729 MER).
The company’s headquarters in Lakewood, Colorado was placed on the market at $2.875 million—approximately $1 million above the price paid in 2002.
In 2011, Scherer launched a personal website promoting his work as a public speaker and commercial talent. As closure approached, Video Professor removed his image from marketing materials but briefly reinstated it following asset sales in early 2010. Currently, Scherer serves as CEO of Hurricane Canless Air System.
Controversy over sales methods
Video Professor, Inc encountered allegations of misleading sales tactics through its television and online advertisements, which promoted a free CD-ROM trial requiring payment for shipping. Following this trial, customers were reportedly charged between $190 and $399.99 for additional products unless they canceled the subscription. Many complaints highlighted that the complete billing details were not clearly communicated, some consumers were billed immediately without explicit approval, and requests for refunds were frequently rejected.
In 2009, Video Professor was ranked fifth in the number of complaints received (112) by the Colorado Attorney General's office and tenth with 15 complaints in early 2010. Accumulating thousands of grievances filed with the Better Business Bureau (BBB) led to Video Professor losing its BBB Accreditation, resulting in an F rating as of May 2012.
Lawsuit involving Video Professor
In September 2007, Video Professor initiated legal action against 100 anonymous individuals, claiming that negative reviews orchestrated by competitors were damaging its business reputation. The majority of grievances focused on the automatic monthly billing of $189.95 after customers accepted the "free disk" offer, emphasizing inadequate disclosure and obstacles to canceling.
This lawsuit attracted criticism from the consumer advocacy organization Public Citizen. Video Professor sought subpoenas to obtain IP addresses of Wikipedia contributors who allegedly posted defamatory remarks; however, Comcast declined to provide user information without a judicial order. By December 2007, Video Professor had retracted the lawsuit.
Additionally, the company accused multiple entities of defamation and trademark infringement, including requesting the removal of all Video Professor-related content from Uncyclopedia in December 2008.
External links
- Defunct software companies of the United States
- Defunct educational software companies
- Education companies established in 1987
- American companies disestablished in 2009
- Software companies established in 1987
- Software companies disestablished in 2009
- Companies based in Lakewood, Colorado
- Software companies based in Colorado