Finnish Internet television firm Floobs said it has run into significant financial problems and is set to close down operations.

Privately-held Floobs has offered a free television channel on the Web for everyone in the world, enabling people to run live shows or pre-recorded material, for no charge.

The company charged users for some broadcasting tools, while also selling advertising space. Its service is used by some top soccer clubs in Europe, including FC Sevilla of Spain.

Floobs Ltd has run into significant financial problems and the future of service looks uncertain, co-founder Joonas Pekkanen said in an e-mail to users with the title that Floobs was closing down.

We are trying to find a new partner who would be interested in maintaining the service but we encourage you to urgently download your videos to prevent any loss of critical data, he said.

User-generated content on popular sites such as YouTube is proving to be the driver of Internet TV.

(Reporting by Tarmo Virki)