YNOT – Nine and one-half months after debuting, the first company to provide explicit adult video-chat to mobile devices via Apple’s FaceTime application has shuttered. iP4Play Chief Executive Officer Travis Falstead blamed the company’s demise on stiff competition in the mobile chat space, rising talent costs and failure to find a market for the technology.

“Lack of FaceTime adoption and competition from webcams, coupled with higher costs to maintain quality talent [doomed the company],” Falstead told Cult of Mac. “Our staff gave it their all, but we were just a little bit ahead of the curve. We are proud of what we accomplished with a new technology in a short time.”

He also said all talent and iP4Play’s 40 other employees will be paid. And he hasn’t given up on the mobile space: Falstead told Cult of Mac he’s already hard at work on another application using different technology.

As for Apple’s FaceTime videoconferencing product, Falstead indicated potential remains in that quadrant, but he doesn’t believe FaceTime-based apps will generate revenues anytime soon.

He advised other entrepreneurs to “[w]ait a little while until FaceTime has wider adoption. I really do believe there’s something here.”