I don't think this had to be a failure. A huge part of the job of building a success is being willing to change what you're doing based on the results that you're getting.

The one thing that I think is missing from "what we could have done better" is this:

Be willing to CHANGE your ideas, big time.

You had people signing up. They wanted something. Instead of sticking with your first idea (video), why not try a bunch of stuff until something worked.

You have to be creative, flexible, and determined in order to make this type of business work. You had SUCCESS with many of the tests -- don't throw those successes away just because one test failed.

People didn't want video. Give them something else. Does it really matter what it is? Does it even have to be charades? Be willing to CHANGE on the spot in a BIG way.

Think about this:

1. People sign up and say "yes, I want to play charades".

2. They land on a page tht asks them to play charades. How the heck can you immediately engage them? By asking them to turn on video? Or...???

If you're giving up because people don't want to turn on video -- then you may as well not try. Think about this: If I want to have "online boxing", should I give up if people don't literally punch themselves in the face, in order to simulate real punches? Sure, it sounds silly, but it's not that different than asking people to turn on video. Online video can literally be harmful to people, especially when it involves strangers, and even when it involves friends and acquaintances. People don't want video charades. That doesn't mean they don't want charades.

Don't get stuck on the wrong thing!